KPIOperations & Supply Chain
Rent Collection Rate
Percentage of rent due in a period that is collected on time from tenants
What is Rent Collection Rate?
Rent collection rate is the percentage of rent due that is collected on time. It shows how reliably tenants pay.
Late or missed rent hurts cash flow and can signal problems with tenants or processes.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Property Management
- Industry
- Real Estate
- Type
- Lagging
- Impact
- Financial control
- Unit
- %
- Measurement frequency
- Monthly
- Formula
- (Rent collected on time / Total rent due) × 100
How to calculate it
Divide rent collected on time by total rent due, and multiply by 100.
For example, if 480,000 of 500,000 due was received on time, the rate is 96%.
Track arrears and how long they have been outstanding, and split by property and tenant type.
Where it is used
Protecting cash flow
Spot late payment.
Managing arrears
Act quickly.
Assessing tenant quality
Compare properties.
How to improve it
Tips and common mistakes
- Handle arrears fairly and follow the law.
- Support tenants in difficulty.
- Track ageing of arrears.
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