What are Key Performance Indicators?
According to Forbes, A KPI ,or a key performance indicator, is a measurable and quantifiable metric to track progress towards a specific goal. Property maintenance KPIs help identify strengths and weaknesses, make data-driven decisions, and optimize your process where necessary. Also, KPIs help you score the health of your maintenance process. Without them, you are left guessing. There are two different types of KPIs, and it’s crucial to understand the difference between them.
Leading Indicators: Leading indicators help define actions necessary to achieve your goals. They look ahead and help you predict future outcomes.
Lagging Indicators: Lagging Indicators measure output that has already occurred to gain insight into the future. They focus on the past and help confirm trends.
An example we like to use to help people understand leading versus lagging indicators is your speedometer and a speeding ticket.
Driving over the speed limit can result in more speeding tickets (lagging indicator). Knowing this, you can monitor your speedometer to avoid speeding in the future (leading indicator).
Property Meld lets you take a magnifying glass to your maintenance process to pinpoint KPIs and create a predictable, world-class operation.
Achieving Maintenance Excellence
Property Meld created the Ladder of Maintenance Excellence (LoME) as a guide for property managers to master the various steps of the maintenance process.
Property Meld’s LoME is based on Maslow’s Ladder of Hierarchical Needs. Maslow’s Ladder is an idea in psychology that states five categories of needs dictate human behavior. Humans need their physiological needs met before reaching love and belonging needs. Without food and water, you can’t move on to building a shelter. The LoMe works the same way. Without mastering communication with your residents, vendors, technicians, and investors, you can’t move to achieve scheduling and staffing efficiency.
Knowing where you are in the LoME and what might affect your progression is only possible by tracking Key Performance Indicators (KPIs).
Why Tracking Maintenance KPIs is Critical to Retaining Investors
As a property manager, investor retention should be one of your top priorities. One of the best ways to retain owners is to provide them with a predictable maintenance NOI, which can only be achieved by utilizing maintenance metrics. The graph below shows the exact metrics that play into the health of your portfolio and ultimately impact your investor retention.
If you’re interested in looking at maintenance on this granular level, book a demo to see how Insights can help you join the new standard of property maintenance.
