Love it or hate it, data is integral to the multifamily industry. Where there is data, there is time-intensive reporting that bogs down many multifamily professionals.

As we mentioned in our previous blog, the primary issue within the industry is not just the sheer amount of data, but the disorganization of the information itself. Tasked with compiling and analyzing data across multiple reports, multifamily professionals are inundated with information.

So how can multifamily professionals avoid data overload and separate the necessary data from unnecessary?

Understand Business Goals & Develop a Strategy

The multifamily industry relies on reporting, and a weekly report for one property that has 200 units might be a dozen or more pages long. This makes it difficult to analyze information in a timely manner while implementing key business decisions that improve property performance.

Being cognizant of company goals when reviewing data help multifamily professionals target the appropriate metrics to track in order to best measure these goals. Thus, it is important to first determine a clear vision of the desired business outcomes and establish alignment across the organization. This vision will shape the approach to data sourcing and organizational transformation.

Additionally, developing a strategy around good data and outlining business goals helps prevent multifamily professionals from drowning in data. Focusing on good data — data that is accurate and meaningful — is important to ensure that the information will drive efficient decisions and better returns. In fact, 26.7 percent of analysts identified inaccurate data as one of their top two analytics challenges. 

Businesses that have learned to “think smarter, not harder” when it comes to data are the ones that have really profited from the explosion of available analytics and solutions. For example, large organizations such as Facebook, Amazon, and Google have all been pioneers when it comes to collecting and finding meaningful ways to use vast quantities of data.

Establish Key Metrics to Track

Another key to avoiding data overload is to pinpoint 5 to 10 essential key metrics to track on a regular basis. This will keep multifamily professionals focused on their primary goals, optimizing their time and resources.

Reviewing reports just to look at the numbers is pointless. Multifamily professionals need to understand what they are tracking, why it is important, and how they will use the data to drive results. Therefore, some metrics are more important to track regularly, while others can be set aside.

While key performance indicators (KPIs) vary depending on the multifamily professional’s goals, some of the essential metrics to track include:

  • Current and future occupancy
  • Lease expiration percent
  • Make-ready percent
  • Days to make ready
  • Conversion ratio
  • Closing ratio
  • Utility recovery percent
  • Collection as a percentage of APR
  • Controllable and noncontrollable expense ratio

Implement a Business Intelligence Solution

While forming business goals and establishing key metrics are the first steps to avoiding data overload, implementing a Business Intelligence solution also goes a long way in improving performance.

Rentlytics provides access to data in real time, pinpoints illogical data and operational inefficiencies, consolidates data for full transparency, and helps align your entire organization for enhanced productivity.

Rentlytics also offers full visibility into all of your properties — even if the data lives in multiple systems. With a centralized view of your entire portfolio, it is easy to spot trends, identify red flags, and see how daily activities impact NOI. A BI solution helps eliminate data overload inefficiencies and enables multifamily professionals to improve property performance.