3 benefits of robust reporting in a rental property business
Reporting is an indispensable tool for any residential rental business, regardless of size or sector. Not only does a solid report offer valuable insights into portfolio performance and overall business health, but the information informs decisions and even future pivots that can result in growth and success.
In bigger rental agencies, regular reporting and monitoring is even more important to keep senior management, board members and other stakeholders well-informed about the inner workings of the business. This information sharing also fosters a sense of transparency which makes group decision-making far easier down the line.
Here are three benefits of implementing a robust reporting system in your rental agency:
- Key trends show up strengths and weaknesses, informing focus areas
Trend analysis can help you identify areas in your business that are doing well, as well as areas that require your focused attention. PayProp’s management reports allow clients to examine, and benchmark key trends in their business by viewing data on income, rent, area rent averages, tenant payments, properties and invoices. This information allows for better planning and future-proofing of the business.
- Risk management
In uncertain economic times, dealing with arrears and bad debt becomes even more pressing for rental agents. Tenants are currently experiencing increasing financial pressure with rising inflation which is adversely affecting their ability to pay rent. Keeping abreast of arrears should be a top priority and this is made substantially easier with effective monthly management reporting.
Robust reporting software allows rental agencies to see how their business compares to the competition. Look for a property management provider that includes management reports allowing you to compare your average rent amounts and distribution against the competition.
PayProp CEO, Michelle Dickens emphasises that rental agencies can achieve superior results by leveraging the potential of quality management systems. “Up-to-date and factual information about your operation is a game changer when it comes to ongoing success and informed decision making,” concludes Dickens.