Apr 9 (edited) • General discussion
The 3 Numbers Every Agency Principal Should Know
When I start working with a new agency, I always ask the Director three questions in the first 10 minutes.
Most can't answer all three quickly, as the dashboards don't exist in their business.
Here they are:
1. What is your net rent roll growth this month? Not gross wins. Net. Wins minus losses. Most principals only track one side of this equation and wonder why the roll isn't moving.
If you don't know this number right now, your growth reporting has a blind spot.
2. What is your BDM's appraisal to signed management conversion rate this month? Not how many appraisals they completed. The percentage that actually converted into signed management agreements.
If you don't know this number right now, you're managing activity, not results. A BDM completing 20 appraisals and converting 4 is underperforming. A BDM completing 12 and converting 8 is a growth asset.
Volume without conversion is just an expensive effort.
3. Why did your last three properties leave? The real reason. Communication breakdown, maintenance failure, relationship issue, vacancy.
If you can't answer this specifically for the last three exits, your retention system has a gap.
These three numbers tell me more about an agency's growth health than any monthly report. They're leading indicators, not lagging ones. They tell you what's about to happen, not what already has.
Which of these three can you answer right now?
Drop your number in the comments — 1, 2, or 3 — based on which one you're least confident about. I'll share some thoughts on each.
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The 3 Numbers Every Agency Principal Should Know
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