I. Backgrounds
After I came to Dusseldorf, I experienced the process of renting an apartment. During this time I got to know the owner of the rental apartment and we had some discussions about the rental management of the apartment.
Let’s dive into the case on how to manage an apartment commercially from the perspective of an administrator in charge of a rental apartment (5 floors, 20 rooms). I believe similar discussions can be replicated in other fields such as project management and human resources.
II. Big Picture
1. Success factors
Maximise the revenue
Lower the cost
Keep a satisfied living experience
Find the most efficient advertisement solution
2. Dimension Breakdown
Collect information through following dimensions：Tenant level: jobs, monthly income, marriage status, etc.
Planning level: Organize annual and future rental plans based on existing contracts and expectations
Actual level: Make rolling adjustments based on the actual situation
Room level: Statistics of costs and income of each room
Market level: Collect various information on the local rental market, including the number of renters and rental price levels
III. Dashboard
Integrate the collected information to obtain different insights from various dimensions and ultimately formulate decisions
*All data are fictitious and are for reference only
1. Tenant level
Get the idea from tenant monthly income and rent. Reduce the risk of payment delay.
2. Planning level
3. Actual level
Calculate Actual occupancy and profit by taking into account actual costs and actual tenant check-outs.
4. Room level
Set reasonable pricing based on market price information and evaluate the difference between the actual rental price and the listed price.
IV. Some Insights
1. Occupancy Rate means Profit
Hotel occupancy rates typically remain around 65%. Below this level, even if the unit price of the room is high, there is still a risk of loss.
2. Efficiency and Sustainability
In actual operations, improving the efficiency of recruiting tenants and the average length of stay of tenants can greatly increase revenue and profits.
3. Improve Payment Collection
Setting up automated procedures can reduce the risk of payment delays and reduce the redundant work of manual statistics.