How to Create a Strategy Around Good Data Jul 06, 2018 An abundance of data can be both good and bad, and separating the useful from the irrelevant can be a difficult and time intensive process. While information about your property portfolio is a source for successful decision-making, error-ridden or outdated information results in costly decisions that do not address your property’s real problems. But first — what is good data? At Rentlytics, we refer to good data as data that is accurate and useful. The Importance of Having a Strategy Behind Your Data As a multifamily professional, you have access to tons of raw data related to leasing, operations, finances, and more. But are you actually using all of it? Is the amount of data produced causing you to work harder rather than smarter? It is important to establish a strategy around your data to ensure that what you analyze will drive efficient decisions and better returns. A key component of your data strategy is establishing a clear vision of the desired business goals and establishing alignment across your organization. This vision will shape your approach to data sourcing and organizational transformation. Being cognizant of company objectives when reviewing data will help you target the appropriate metrics to track in order to best measure these goals. Creating a strategy around your data involves refining the data collection process, knowing which metrics to focus on, and ensuring your data is accurate. These steps allow you to make proactive, rather than reactive, portfolio decisions. The Impact of Data Strategy In addition to crafting a data strategy, implementing a Business Intelligence solution like Rentlytics is important to ensure that what you analyze will drive efficient decisions. A BI solution, paired with an effective strategy, enables you to spend more time pinpointing outliers in the data and provides more opportunities to increase NOI. For example, one of our customers determined that, on average, every additional day a unit sat vacant added an extra million dollars to their expenses. By reducing the average days vacant by just two days, they discovered they could increase their revenue by $2 million! Or perhaps you have a dashboard that breaks down expenses for the 50 properties you manage — payroll, repairs and maintenance, utilities, etc. With this specific information, you are equipped to dig into each property and discover, for example, if one is using a different snow removal vendor than the others. The data allows you to effectively target one category rather than combing through entire budgets. By switching to a different snow removal vendor, you are able to decrease expenses by $10,000, which directly impacts NOI. Assuming a cap rate of 5%, this increases property value by $200,000. In this situation, if you had been using budget reports alone (and noticed that all property expenses were in line with the overall allocated budget), you would have missed this opportunity to raise the property’s value. Are You Making Smart Decisions With Your Data? A Business Intelligence solution allows you to see data in real time and take on a proactive strategy. Download our infographic to find out how you can get more value from your data and use it more strategically. Go Recent Post Why Employee Engagement Is Essential to Property Management Success Buff Up Your Budget: Start Planning Now to Integrate BI in 2019 All Aboard! Overcoming Onboarding Challenges in a Multifamily Tech Purchase Subscribe Tell us your email address and we'll add you to the list. Subscribe If you are human, leave this field blank.