Leasing KPIs: Why classic metrics are not enough – and what you should really be measuring

Vacancy rate low, letting duration within limits – and yet, things are not running smoothly in day-to-day operations. Teams are overloaded, owners are asking questions, handovers are stalling. The numbers say "everything is fine" – but the feeling says something else.

KPIs measure results, but not causes. Those who only see outputs cannot steer – they can only react.

Classic key performance indicators in letting measure the wrong thing.

Those who measure processes instead of results create real steerability – and act before problems arise.

The right KPIs in letting do not just measure what comes out in the end, but how the process gets there. In this article, we show which key figures really count.

What are meaningful KPIs in letting?

KPIs in letting can be divided into two categories: Output KPIs and Process KPIs. Output KPIs show what happened – vacancy rate, letting duration, rent loss rate. Process KPIs show why it happened – state duration, query rate, handover time.

The crucial difference: Output KPIs enable reporting. Process KPIs enable steering.

Why does it fail in practice today?

78% of property managers measure the vacancy rate (GdW survey). That is good – but it is not enough. The vacancy rate shows that units are vacant. It does not show why they are vacant.

Results are measured – causes are not

From practice, we know: Less than 15% of organisations record how long an individual process step takes. Less than 5% measure the query rate or handover duration. This means: the operational reality is invisible.

Steering happens too late

Without process KPIs, a bottleneck only becomes visible when the result is bad – when vacancy rates rise, letting duration explodes, or owners escalate. By then, the time is already lost.

No basis for comparison

If how long each step takes is not measured, there is no basis for improvement. Teams work by feel, not by data. Optimisation remains a matter of chance.

Main reason: No systemic foundation

From practice, we know: The most frequently cited reason for missing process KPIs is "No systemic foundation" – the data does not exist because the process is not mapped as a system.

How letting duration is concretely measured and shortened is shown in our article on shortening letting duration.

What this costs – effects and ROI

Risks of missing process KPIs

Reactive steering: Without process KPIs, bottlenecks are only recognised once they have escalated. By then, the damage has already been done – in the form of vacancies, owner complaints, or team overload.

Lack of investment basis: Those who cannot measure where the process gets stuck cannot justify where to invest. A lack of measurability means a lack of a foundation for investment decisions.

Efficiency gains with process KPIs

Empirical values from practice at typical property management companies:

• Proactive steering saves around 20 to 30% of escalation efforts

• Early warning of delays enables intervention before vacancy occurs

• Process KPIs create the data basis for targeted optimisation

• Owner reporting becomes robust instead of anecdotal

Practical example

A property management company with 400 units. Controlling showed a good vacancy rate. Internally, however, there was chaos: no visibility on processing status, handovers took an uncontrolled amount of time, escalations accumulated.

The problem: The output KPIs said "everything is fine", but the process behind them was not steerable. No one knew which cases were stuck where and why.

After introducing three process KPIs – step duration, handover time, query rate:

• 20% fewer escalations

• Visible for the first time: which process steps cost the most time

• Targeted optimisation of the two slowest handovers

• Owner reporting based on real process data instead of estimates

Review and maintain existing output KPIs

Output KPIs like vacancy rate and letting duration are not wrong – they are necessary. They are just not enough. Review what you measure today and keep doing it.

• Document existing KPIs

• Identify gaps: What shows results, what shows causes?

Supplement three process KPIs

Supplement three process KPIs that make the operational reality visible:

1. Step duration: How long does each individual process step take?

2. Handover time: How long does the transition between two steps take?

3. Query rate: How many queries arise per case?

Calibrate and benchmark the KPI system quarterly

Measure the three process KPIs over at least one quarter. Compare with internal benchmarks and identify where the greatest leverage lies.

• Schedule a quarterly review meeting

• Identify Top 3 bottlenecks per quarter

• Derive measures and measure their impact in the following quarter

78% measure vacancy. Less than 15% know why it occurs. Those who only measure outcomes manage – those who measure processes steer.

Proactive steering is cheaper than reactive damage control. The first step: introduce three process KPIs and measure them for one quarter.

The full context is explained in our guide to optimising the letting process.

Which KPIs are truly useful in letting?

Alongside classic output KPIs (vacancy rate, letting duration), three process KPIs are crucial: step duration, handover time, and query rate. These show not just the result, but the causes behind it.

What is the difference between output KPIs and process KPIs?

Output KPIs measure results – what comes out in the end. Process KPIs measure causes – how the process gets there. Output KPIs enable reporting, process KPIs enable steering.

How do you make letting processes measurable?

Through three steps: keep existing output KPIs, supplement with three process KPIs (step duration, handover time, query rate), and calibrate the KPI system quarterly. The foundation is a process that is mapped as a coherent system.