Market Rent Analysis Report
Are you leaving money on the table?
In this post, you’ll see the difference between a traditional spreadsheet, beloved of so many property managers…
and a “state of the art”, visual, interactive Market Rent Analysis tool…
and how modern technology can reveal the invisible patterns and trends in your data…
and show you hidden opportunities to increase rents in line with the market.
Market Rent Analysis Report – The Past
Let’s start with how things were “back in the day” (and still are now for many property managers) and take a look at the detail section of the “traditional” Market Rent Analysis report ….
Market Rent Analysis Report – The Future
The next set of diagrams show the same data in a visual form. This can be displayed on web pages that you can share with your executives. The reports are interactive, and can be filtered by many criteria, such as Property Group, Property, Unit Type etc. You can also limit the data displayed by criteria such as Rent Amount, Gross Potential Rent (GPR) and Gain/Loss to Lease (GTL). These metrics are computed for you in the Market Rent Analysis report.
Below is the same view after some filters have been set. The dashboard has been updated to show data for the properties and units selected.
Lease Rent vs Market Rent
Here we will look at each of the views or panels on the dashboard above.
This Lease Rent vs. Market Rent scatter chart shows you where you might be leaving money on the table. If the Market Rent and Lease Rent are equal, the dots would fall along a 45 degree line. However, as you can see, there are some units for which the Market Rent is zero (the data probably was not entered in Rent Manager). Similarly for Lease Rent. For the rest of the dots, some fall above and some fall below the 45 degree line. In Metric-X’s interactive dashboard, you can click on a dot to see more information about the unit. You can also select one or more dots and have the rest of the dashboard update for the selections. By contrast, the Rent Manager Market Rent Analysis report would have to be run multiple times or exported to Excel in order to get to this level of detail for each property.
Lease Move In / Move Out Date
This view shows the length of leases. The lower axis shows the dates, and you can tell approximately when the lease begins and ends. This view can tell you how many leases will be ending when and what workload to expect in the leasing office. Technically, this diagram is a Gantt chart, which is often used in Project Management. If you have to line up your turnover contractors and schedule major renovation projects, such a view can tell you instantly the workforce you will need to schedule.
The section shown below is text-based, just like the PDF report you can generate from Rent Manager. Instead of having to flip through many pages of data of a PDF file, here you can limit the information displayed to only what you are interested in. While Rent Manager calculates the Gross Potential Rent (GPR) and Gain/Loss to Lease (GTL), we can compute other ratios and metrics and display them in this view. Furthermore, these calculations can be accurately displayed at the unit level, property level or the property group level.
The image below shows the filter panel of the dashboard. The check boxes and sliders enable you to focus on the information you are interested