RSS

3 ways machine learning will improve your marketing

Inmannews - Mon, 08/14/2017 - 7:18am
SAN FRANCISCO -- "I'm not from the future, I'm just from Google," said Dan Siegler to a laughing Inman Connect crowd. "I can just tell you where we're placing our bets." So, what exactly is Siegler, the head of industry, automotive and real estate at Google, putting his bets on? Machine learning. Siegler said from the beginning of time until 2003, humankind produced approximately 5 exabytes of data. Now, we produce almost 5 exabytes of data per day ...
Categories: RSS

Gary Gold: Who would buy a $100 million house?

Inmannews - Mon, 08/14/2017 - 3:00am
Last year, Gary Gold sold the Playboy Mansion, and it was the first home ever to sell for more than $100 million in Los Angeles. And even now, he still gets asked, who would buy a home for $100 million ...
Categories: RSS

Say hello to Realtor Bot, a chatbot for brokers

Inmannews - Mon, 08/14/2017 - 3:00am
Realtor Bot by Botplan is a lead generation chatbot for brokers to deploy and manage. At no point does Realtor Bot allow a human to take over the chat. This is a strategic move by Botplan to ensure its product can continually evolve. The more it talks, the smarter it becomes ...
Categories: RSS

Sh*t real estate professionals say

Inmannews - Mon, 08/14/2017 - 3:00am
"I don't have time to get it done." "The market is terrible!" "Buyers are liars." Have you ever vocalized any of these phrases? If so, welcome to the club! Watch to hear real estate professionals get real and express the sh*t they say on a regular basis ...
Categories: RSS

Why isn’t my social media working? 7 common mistakes

Inmannews - Mon, 08/14/2017 - 2:30am
Wondering why your social media isn’t yielding the results you’ve heard about? You aren’t alone. I would venture to say that 80 percent of real estate agents are asking themselves that very question ...
Categories: RSS

Real estate hack: 3 steps to earning passive income without renters

Inmannews - Mon, 08/14/2017 - 2:00am
Plenty of real estate agents earn passive income by renting out investment properties, but did you know that there’s a way to generate passive earnings without the hassle of renters ...
Categories: RSS

4 easy ways to scope out your real estate competition online

Inmannews - Mon, 08/14/2017 - 1:30am
Do you know which real estate agents in your area are using paid advertising, who has thousands of Facebook fans, or who is getting the most organic traffic to their website? If you’re not sure, it’s time to get informed ...
Categories: RSS

6 ways empowered agents embrace disruption to drive success

Inmannews - Mon, 08/14/2017 - 1:00am
The word disruption has sailed around real estate for over a decade. We’re constantly anticipating its influence on the way we do business ...
Categories: RSS

Is your real estate team violating the law?

Inmannews - Mon, 08/14/2017 - 1:00am
If you run a real estate team or are the supervising broker of an office that has agent teams -- listen up. There’s a high probability that your teams are violating the independent contractor laws, and it’s time to act now to rectify this situation ...
Categories: RSS

Introduction to Property Management KPIs

American Apartment Owners Association - Sat, 08/12/2017 - 10:37am

 

  • Is your business scalable?
  • How do you make pricing/fee decisions?
  • Do you have a 12-month growth plan?
  • How will the new services you are rolling out impact profitability?
  • How many people do you need to hire if you add 130 units and lose 23 units in 2017?
  • Is your company ready to hire a Business Development Manager (BDM)?
  • How much profit can you count on by the end of the year?

If you are asking yourself these questions, congratulations! You are a successful entrepreneur looking to blow the lid off of your business and set your business on on the path toward:

Constant Growth and Constant Improvement

(A phrase we borrowed from our client, Matthew Greeves of EJF Real Estate)

Here at Fourandhalf, we solve marketing and growth for property management companies, and now we’d like to help you realize more profit and model your company growth to take maximum advantage of every new lead and new unit under management. If you already know these key ratios, jump onto part 2 of our post: applying the property management KPIs

Introduction to Property Management KPIs

Establishing and tracking Key Performance Indicators (KPIs) is the first step to using data to enable growth and the success of your business. We use these very same metrics here at Fourandhalf – all the way from working in a garage five years ago to a 24-person, multi-million dollar company. We’ve grown by carefully and deliberately tracking our KPIs and modeling every new product and initiative against our Unit Economics Model (UEM).

Many companies underinvest in marketing and end up stagnating their growth (Yeah, yeah, we are a marketing company, so of course we’d say that – but Fourandhalf suffered from the same ailment early on). The truth is, if you don’t know how each incremental dollar of input connects to the output, you are flying blind. Marketing is a key function of your business, but if you don’t have these metrics dialed in, it’s hard to recognize how much you can afford to spend on marketing, and how much your organization can scale.

The model as a whole is fairly complex, but if we break it up into small chunks, it is super manageable.

Let’s go to KPI school! (Your business depends on it)

Let’s start with the first 3 key metrics:

  • CAC – Customer Acquisition Cost
  • CLV – Customer Lifetime Value
  • ACV – Annual Contract Value
Customer Acquisition Cost (CAC)

Businesses are born and die on CAC; it is the backbone of every marketing campaign because it tells you what you’re actually paying, on average, per new client. You can calculate this by door or by owner, but we recommend running both metrics. If you also increase your average number of doors per owner, you can earn more revenue from each customer.

So here’s how you work on CAC: Choose a time period, like 12 months. Open up your Profit & Loss for the period and total up your owner marketing costs and your owner sales costs. For example, how much did you pay a sales person for that 12 month period? If you are the one that does all the selling, take the appropriate portion of your salary and commit it to sales expense line. Add all of your marketing and sales costs and divide the total by the number of owners you brought on board during that period. This will give you your owner CAC. Divide it by the number of doors you acquired to get your per-door acquisition cost.

Example:

Sales and Marketing Costs for 2016 – $140,000

Units under management acquired in 2016 – 80

$140,000 divided 80 equals $1,750

Your 2016 Customer (per Unit) Acquisition Cost is $1,750

Annual Contract Value (ACV)

We use this metric to figure out the average amount of money you’ll receive per unit over a period of 12 months. It requires only simple math and it helps you figure out if your business really works. You get this number by taking your total revenue for the period and dividing by the number of units under management at the end of that period.

Example:

Total revenue for 2016 – $1,200,000

Ending Units under management as of 12/31/2016 – 360

$1,200,000 divided 360 equals $3,333

Your 2016 Average (per unit managed) Contract Value is $3,333

How does your ACV compare to CAC? Do you pay back your customer acquisition cost in 15 months or less? We’ll discuss on how to use these ratios later in this series.

Customer Lifetime Value (CLV)

This metric can truly tell you the health of your business. To find your Customer Lifetime Value (CLV, sometimes called CLTV), you will take your average annual contract value and multiply it by the average number of months your customers stay with you – owners, not tenants. That can be tricky. If you’ve been in business for 10 years, you can look at how long your customers have stayed over the course of those years. You’ll be able to track it and get a good average. But if you can’t do that, use a number like 42 months (three and a half years), which is the national average for property management companies. Once you understand your CLV and CAC, you have some serious metrics to continue perfecting your operations and figuring out where and how to spend your marketing budget.

Example:

ACV ($3,333) divided by 12 equals $227.75

Average number of months unit stays under management – 42

$227.75 x 42 = $11,665.50

Your Customer Lifetime Value is $11,665.50

Every phone call you miss from a prospective lead, equals the value of a gently used, low mileage 2010-2012 Toyota Corolla S. Ouch. Knowing this number changes the optics through which we view our businesses, doesn’t it?

Source: fourandhalf.com

The post Introduction to Property Management KPIs appeared first on AAOA.

Categories: RSS

4 tips for succeeding in real estate without overextending yourself

Inmannews - Fri, 08/11/2017 - 1:01pm
SAN FRANCISCO -- Kofi Nartey says real estate is like a seven-layer dip -- "When you start getting down to the beans and cheese that's when s**t starts getting good." ...
Categories: RSS

How to sell or merge your real estate brokerage

Inmannews - Fri, 08/11/2017 - 12:16pm
SAN FRANCISCO -- Selling your real estate brokerage can be an emotional process akin to sending your kid off to college. John Aaroe, CEO of the John Aaroe Group, and Partners Trust CEO Nick Segal -- who both merged with San Francisco-based indie giant Pacific Union -- have both been on this emotional ride recently.  ...
Categories: RSS

Real estate investor roundup: This week in tech, funding, M&As and more

Inmannews - Fri, 08/11/2017 - 10:55am
Venture capital firm Fifth Wall produces a bi-weekly newsletter that curates relevant news articles, summarizes recent deals and provides updates on the various portfolio companies in which they’ve invested ...
Categories: RSS

How online deals will reshape the real estate industry

Inmannews - Fri, 08/11/2017 - 9:55am
SAN FRANCISCO -- When you see something weird or broken in the world, you have two choices: wait for someone else to fix it or fix it yourself. That's according to John Collison, 27-year-old Irishman and founder of online payment processor Stripe. The young entrepreneur took the stage with Brad Inman yesterday at Inman Connect San Francisco to delve into the future of real estate and the internet ...
Categories: RSS

Up your sales game with geographic marketing

Inmannews - Fri, 08/11/2017 - 9:24am
SAN FRANCISCO -- Have you ever avoided a call from your sellers because you didn't know what to say? What else could you possibly tell them about what you are doing to sell their home? On stage at Inman Connect San Francisco, Lindsay Listanski -- senior manager of media engagement at Coldwell Banker Real Estate -- said there's always something to say. You should be telling your sellers just how much you are doing to get their home sold, and that should include geographic marketing ...
Categories: RSS

Ace your listing presentations with Haiku Deck

Inmannews - Fri, 08/11/2017 - 3:00am
Haiku Deck is an awesome web-based marketing and presentation tool with attractive, simple templates that are easily adjustable ...
Categories: RSS

5 things you need to know when representing rural buyers

Inmannews - Fri, 08/11/2017 - 1:30am
Waking up every morning to see my horses grazing in a grassy field, raising chickens to get the freshest eggs imaginable and playing with baby goats in my own backyard had been a dream of mine since I was a child. And almost seven years ago, my husband and I made the leap from suburban community living to the green pastures of Western Loudoun County, Virginia ...
Categories: RSS

7 ways to raise your emotional intelligence in real estate

Inmannews - Fri, 08/11/2017 - 1:00am
Emotional quotient, or EQ, is a measure of a person’s adequacy in areas such as self-awareness, empathy and being sensitive with other people. Have you ever wondered if your EQ is high enough? Here are seven ways to improve your emotional intelligence as a real estate agent ...
Categories: RSS

Inman announces 2017 Innovator Award winners

Inmannews - Thu, 08/10/2017 - 8:05pm
SAN FRANCISCO — Inman Connect challenges the industry's top real estate agents and brokers to attack their biggest threats and create their brightest future. We also honor and celebrate the most innovative companies in real estate that are shattering the status quo. Today, throughout a series of inspiring sessions, Inman announced the winners of its 2017 Innovator Awards.  ...
Categories: RSS

How to build a neighborhood website that makes you money

Inmannews - Thu, 08/10/2017 - 7:59pm
Are you serious about building a sustainable real estate business that grows year after year? Providing an amazing digital resource that keeps homeowners up-to-date with events and businesses in their neighborhood will generate relationships and referral-based business for you ...
Categories: RSS

Pages

Subscribe to Rental Housing Journal aggregator - RSS