Structuring Property Manager Bonuses: KPIs for Occupancy and Expense Control

mobile home university
1

Hi all,

I’d appreciate your input on structuring bonus compensation for property managers in a way that drives both high occupancy and strong expense control.

We’re exploring ideas such as sharing around 1% of monthly income to incentivize occupancy, but we’d like to refine this further to ensure it also encourages managers to keep expenses within budget.

For those of you managing similar operations:
*What KPIs do you use to balance revenue growth and cost control?
*How do you structure bonus programs to align with both occupancy and expense targets?
*Any lessons learned or pitfalls to avoid when implementing these incentives?

Thank you in advance for your insights.

2

We looked into this for our park manager/maintenance managers and decided against it. We pay them very well with holiday and vacation pay. Holiday bonuses and small bonuses when the get a new tenant. Developing KPIs that balance revenue growth and expense controls that can be shared with property managers and then used on a daily basis to move the numbers is difficult. We decided to keep it simple. Pay well, small bonuses for securing new tenants, this is your day to day maintenance budget. If a major repair is needed- call me to discuss. Christmas bonus if we do well at the end of the year.

3

I think you are best served by giving out a bonus each time a space is filled. IE they source an applicant for a POH sale, lease, etc. Or if they fill a vacant space. $200 for a tenant sign up seems to be a good starting place.

4

Thanks for sharing your experience here, really appreciate it.

5

Thanks for the suggestion, this is very helpful.

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