A Managers Metrics of Success

Today, it's easier than ever to compare ourselves to others. LinkedIn, Facebook, Twitter, and YouTube are filled with other "successful" managers and coaches, and do it yourselves. These people may or may not be successful, but the majority of them will only show you their "successes".

Most of the time, they focus on glamor metrics rather than accurate success metrics—total Revenue, Number of Properties, and number of employees, to name a few.

While these metrics may sound sexy, they don't show how successful a company truly is in today's day and age. A company can make millions in revenue but lose twice as much. A company may be sinking all revenue into marketing and bringing new properties into its portfolio but losing them just a few months later because of poor performance. A company may be bloated with employees in positions that are redundant or unnecessary.

As our industry gets more challenging, it is more important than ever to put less weight into these glamor metrics and redefine what success means. Ignoring the obvious of focusing on profitability over revenue, two metrics that everyone needs to focus more on are our owner retention rates and the age of contracts. These two metrics are a more accurate measure of whether your management company is successful.

The owner retention rate and age of contracts signal the owner's happiness with your services. Owners are happiest if they are profitable, properties are well maintained, and their guests are happy, and these are the core pieces of operating a property management company. Focusing on these two metrics in 2024 will create a successful and proposed management company for the long term.

What is your owner retention rate? What is the average age of your management contracts? Let's make these metrics more common in 2024.