In multifamily property management, maximizing Net Operating Income (NOI) isn’t just about keeping expenses low—it’s about understanding the metrics that drive your property’s financial health. Operators who ignore key NOI indicators risk leaving money on the table and losing their competitive edge.

Here are the five NOI metrics you absolutely can’t afford to overlook:

1. Gross Potential Rent (GPR)

Why it matters: GPR represents the total rent your property could generate if all units were leased at full market rates.

The insight: Comparing GPR to actual rent collected highlights missed revenue opportunities. Are concessions or vacancies dragging down your bottom line? If your GPR is significantly higher than your collected rent, it’s time to reassess your leasing strategy.

2. Occupancy Rate

Why it matters: This metric shows the percentage of units currently leased.

The insight: Even a small dip in occupancy can dramatically impact NOI. For example, in a 100-unit property, a 2% drop in occupancy could equate to tens of thousands of dollars lost annually. Proactive lease management and retention programs are key to keeping this number high.

3. Operating Expenses Ratio

Why it matters: This is your total operating expenses divided by your effective gross income (EGI).

The insight: Tracking this ratio helps operators spot inefficiencies and control costs. A sudden spike may indicate rising maintenance, utility, or staffing costs that could erode NOI if not addressed promptly. Benchmark against similar properties to see if you’re overspending.

4. Revenue per Unit (RPU)

Why it matters: RPU measures the revenue generated per unit, including rent and ancillary income (like parking fees or pet rent).

The insight: This metric goes beyond occupancy—two properties with the same occupancy rate can have vastly different RPUs. By analyzing RPU, operators can identify opportunities for upselling services, implementing premium unit features, or adjusting pricing strategies to boost NOI.

5. Tenant Turnover Costs

Why it matters: High turnover eats directly into NOI. Costs include marketing, cleaning, repairs, and lost rent during vacancies.

The insight: Reducing turnover is a powerful lever for increasing NOI. Investing in tenant experience, technology-enabled communication, and efficient move-in/move-out processes can dramatically improve retention rates and protect your bottom line.

The Bottom Line

Successful operators know that NOI isn’t just a number, but also a story. By monitoring GPR, occupancy, operating expenses, RPU, and turnover costs, you gain a clear, actionable view of your property’s financial performance.

Maximizing NOI isn’t about cutting corners; it’s about leveraging data to make smarter decisions, reduce inefficiencies, and seize revenue opportunities. Track these metrics consistently, and your NOI will not only survive—it will thrive.

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