Measuring real estate management performances

Since the increase of value of real estate is no longer taken for granted, investors are looking for ways to ensure their direct return on real estate. Optimizing the occupancy rate and minimizing operating costs are important issues when calculating the direct return. For that reason, the role of the real estate manager that is responsible for daily management of the investor’s real estate portfolio, has become more important. The real estate manager has to demonstrate to the investor his or her capabilities in managing and controlling rental income and operating costs. The aim of this paper is to define the key indicators for measuring real estate management performances. The measurement of these indicators provides investors important information when improving their real estate management processes and evaluating their contracted real estate managers. Also the paper demonstrates how information about management performances can be shared by real estate investors as well as their managers by means of an online management information tool.