Property Management KPIs: Occupancy, Turnover and Delinquency (2026)
The property management KPIs that matter for a small portfolio, with formulas and a fully worked 15-unit example covering occupancy, economic occupancy, turnover, renewals, delinquency and expenses.
Key Takeaways
- Physical occupancy is not the same as economic occupancy. Units with tenants in them can still bring in less than they should through concessions, below-market rents and bad debt. Economic occupancy captures that.
- Turnover is the expensive event. Track move-outs, renewal rate and days vacant per turnover together. Each turnover usually costs vacancy, make-ready and leasing time.
- Delinquency needs two measures. The dollar rate (unpaid rent divided by rent charged) and the count (tenants with a balance), measured on the same day each month.
- Expenses belong on the dashboard too. Maintenance cost per unit and the operating expense ratio show whether rising rent is actually reaching you.
- Consistency beats precision. Pick a definition, write it down, and measure the same way every month. Trends matter more than any single number.
Quick-Start Prioritization Framework
| KPI | Formula | Worked value (15-unit example) |
|---|---|---|
| Physical occupancy (point in time) | Occupied units ÷ total units | 14 ÷ 15 = 93.3% |
| Physical occupancy (over the year) | Occupied unit-days ÷ total unit-days | 5,355 ÷ 5,475 = 97.8% |
| Economic occupancy | Rent actually collected ÷ gross potential rent | 254,682 ÷ 270,000 = 94.3% |
| Turnover rate | Move-outs ÷ total units | 5 ÷ 15 = 33% |
| Renewal rate | Leases renewed ÷ leases that expired | 7 ÷ 10 = 70% |
| Days vacant per turnover | Total vacant days ÷ turnovers | 120 ÷ 5 = 24 days |
| Delinquency rate (dollars) | Unpaid rent at month end ÷ rent charged that month | 1,260 ÷ 21,000 = 6.0% |
| Operating expense ratio | Operating expenses ÷ collected revenue | 95,000 ÷ 254,682 = 37.3% |
A small landlord does not need fifty metrics. Eight or nine numbers, calculated the same way every month, tell you whether the portfolio is healthy and where money is leaking: units sitting empty too long, tenants leaving who could have stayed, rent going uncollected, or maintenance quietly eating the margin. This guide defines each key performance indicator, gives the formula, works every one through on the same 15-unit example, and explains the traps that make numbers look better or worse than they are. All figures in the example are my own illustration, except where a source is named.
The example portfolio
Three small buildings, 15 units in total, average market rent of 1,500 dollars a month. Over the last 12 months: five tenants moved out, ten leases reached their end date and seven of those renewed, the units were vacant 120 days in total, and operating expenses (excluding mortgage payments and depreciation) were 95,000 dollars. On the last day of this month, one unit is vacant and two tenants owe a combined 1,260 dollars.
Every KPI below uses these numbers.
Occupancy and vacancy
Occupancy is the first number anyone asks about and the easiest to misstate.
Physical occupancy at a point in time
Occupied units divided by total units on a given day. With 14 of 15 units occupied today, occupancy is 93.3 percent. It is simple but jumpy in a small portfolio: one move-out moves it by almost 7 points.
Physical occupancy over a period
Count unit-days. Fifteen units over 365 days is 5,475 unit-days. With 120 vacant days, 5,355 were occupied, so occupancy for the year was 97.8 percent and vacancy 2.2 percent. This is the better measure for a small landlord because it reflects how long units sat empty, not just whether one was empty on the last day.
A market benchmark
The Census Bureau defines the rental vacancy rate as the proportion of the rental inventory that is vacant for rent. It reported 7.6 percent for the third quarter of 2026, up from 7.1 percent a year earlier. That is a national average across very different markets, so compare yourself with local listings as well.
Economic occupancy and vacancy loss
Economic occupancy asks: of all the rent these units could have produced at market rates, how much did you actually collect?
| Line | Calculation | Amount (dollars) |
|---|---|---|
| Gross potential rent | 15 units × 1,500 × 12 | 270,000 |
| Vacancy loss | 120 days × (1,500 × 12 ÷ 365 = 49.32 a day) | −5,918 |
| Concessions | One free half-month to fill a unit in winter, plus small credits | −1,000 |
| Loss to lease | Long-term tenants paying below market | −6,000 |
| Bad debt | Written-off balance from one former tenant | −2,400 |
| Collected rent | 254,682 | |
| Economic occupancy | 254,682 ÷ 270,000 | 94.3% |
What it tells you
Physical occupancy was 97.8 percent, but economic occupancy was 94.3 percent. The gap of about 3.5 points is mostly loss to lease and bad debt, not vacancy. The fix is a renewal pricing plan and tighter collections, not more marketing.
Loss to lease is a choice
Keeping a reliable long-term tenant slightly below market is often the right call, because turnover is expensive. Measuring loss to lease just makes that choice visible. Where rent caps apply, part of it may not be recoverable at all.
Turnover, renewals and days vacant
These three numbers together tell you how much your portfolio spends on tenants leaving.
Turnover rate
Move-outs divided by total units for the period. Five move-outs across 15 units is a 33 percent annual turnover rate. Count evictions and skips as move-outs too.
Renewal rate
Leases renewed divided by leases that reached their end date. Seven of ten is 70 percent. Leases that converted to month-to-month can be counted as renewals if the tenant stayed, but be consistent. Track the reasons tenants give for leaving: rent, maintenance, life change. The first two are partly in your control.
Days vacant per turnover
Total vacant days divided by the number of turnovers: 120 ÷ 5 = 24 days. Split it into make-ready days (keys returned to unit rent-ready) and marketing days (rent-ready to lease start). If make-ready averages 12 days, scheduling cleaners and painters before move-out may save a week per turnover.
What a turnover costs
Add vacancy loss for the days empty, make-ready costs, leasing costs and any concessions. At 24 days and 49.32 dollars a day, vacancy alone is about 1,184 dollars per turnover. Add 1,000 dollars of paint, cleaning and repairs and you are past 2,000 dollars before advertising or your time.
Delinquency and collections
Measure delinquency on the same day each month, usually the last day, after the grace period and late fees have posted.
Delinquency rate in dollars
Rent charged this month: 14 occupied units at an average of 1,500 dollars, or 21,000 dollars. Unpaid rent on the last day: 1,260 dollars. Delinquency is 1,260 ÷ 21,000 = 6.0 percent. Decide whether you include late fees and other charges, and keep it the same each month; many landlords measure rent only.
Delinquency by count and by age
Two of 15 tenants (13.3 percent) owe money. Age the balances: 0 to 30 days, 31 to 60 days, over 60 days. A 900 dollar balance that is 10 days old is a reminder; one that is 70 days old is a decision.
Collection rate and bad debt
Collection rate for the year is rent collected divided by rent charged. Bad debt is what you write off. In the example, 2,400 dollars of bad debt is about 0.9 percent of gross potential rent. Write off balances when you have stopped expecting them, not when it is convenient for taxes, and keep collecting if you can.
Expenses and profitability
Revenue KPIs say nothing about whether the portfolio makes money. Add these.
Maintenance cost per unit
Repairs and maintenance for the year divided by units. If maintenance was 21,000 dollars, that is 1,400 dollars per unit. Track it per property too: an older building that costs twice as much per unit is telling you something about capital planning.
Operating expense ratio
Operating expenses (taxes, insurance, utilities you pay, repairs, management, landscaping, but not mortgage principal and interest or depreciation) divided by collected revenue. 95,000 ÷ 254,682 = 37.3 percent. IRS Publication 527 lists the categories of rental expenses for tax purposes; for this ratio, use the same categories but leave out depreciation and loan payments so years and properties stay comparable.
Net operating income
Collected revenue minus operating expenses: 254,682 − 95,000 = 159,682 dollars. NOI is the number lenders and buyers look at. Your cash flow after the mortgage is a separate figure.
Response time
For maintenance, track the median time from request to completion by priority. Slow repairs show up later as lower renewal rates. Tracking the work orders themselves is a topic of its own.
A monthly KPI routine
Fifteen minutes on the first business day of each month is enough for a small portfolio.
- Occupancy today and unit-day occupancy for the last 12 months.
- Units on notice and leases expiring in the next 120 days, with renewal status.
- Delinquency in dollars and by count, aged into 0 to 30, 31 to 60 and over 60 days.
- Days vacant for any turnover that completed this month.
- Repairs and maintenance spending this month and year to date, per unit.
- Rolling 12-month turnover rate and renewal rate.
- One sentence on what changed and what you will do about it.
Common mistakes with property KPIs
Most of these make a portfolio look healthier than it is.
- Quoting point-in-time occupancy from a good day.
- Ignoring loss to lease and concessions, so economic occupancy is never measured.
- Measuring delinquency on different days of the month.
- Counting a month-to-month holdover as a renewal one month and not the next.
- Including the mortgage in operating expenses, which makes the expense ratio meaningless for comparison.
- Tracking too many numbers and acting on none.
- Comparing a 6-unit portfolio’s monthly numbers with national averages without allowing for how much one unit moves the percentages.
Building a KPI dashboard
If you’d rather not do this yourself in a spreadsheet, most property management software reports occupancy, delinquency and rent rolls. If you want these exact formulas on one screen, you can build a dashboard with Floot on top of your own unit, lease and ledger records, as long as the underlying data is recorded consistently.
Frequently Asked Questions
What is a good occupancy rate for rental property?
It depends on the market. As a reference, the Census Bureau reported a national rental vacancy rate of 7.6 percent in the third quarter of 2026. Compare your unit-day occupancy over 12 months with local listings and your own history.
What is the difference between physical and economic occupancy?
Physical occupancy counts occupied units or unit-days. Economic occupancy compares rent actually collected with the rent the units could earn at market rates, so it also captures concessions, below-market rents and bad debt.
How do you calculate tenant turnover rate?
Divide move-outs during the period by total units. Five move-outs in a 15-unit portfolio over a year is a 33 percent annual turnover rate.
How do you calculate the delinquency rate?
Divide unpaid rent on a set day each month by rent charged that month. Also track how many tenants owe money and how old the balances are.
Which KPIs matter most for a small landlord?
Unit-day occupancy, renewal rate, days vacant per turnover, delinquency, maintenance cost per unit and net operating income. Together they show where money is being lost.
Sources
- U.S. Census Bureau, Quarterly Residential Vacancies and Homeownership, Third Quarter 2026 https://www.census.gov/housing/hvs/current/index.html
- U.S. Census Bureau, Housing Vacancies and Homeownership: Definitions and Explanations https://www.census.gov/housing/hvs/definitions.pdf
- IRS, Publication 527: Residential Rental Property, 2025 https://www.irs.gov/publications/p527