Revenue Management: Proven in Any Market Cycle [eBook]

The U.S. apartment market continues to chug, but in moderation compared to much of its nine-year run. Some markets have softened, sparking some give and take in operational strategies. When markets soften, the focus naturally turns from rent growth to maintaining occupancy, which often leads to concessions for new leases and at the sacrifice of rent growth on renewals. Softening markets – some created by new supply coming on line, others by changing demand levels – have led to discounted rents in some major metros. Such activity challenges an operator to build and maintain a rent roll while keeping occupancy up, and rent growth often takes the hit. But just because the market loses a little steam doesn’t mean that revenue has to be sacrificed. There is always money to be made regardless of market conditions, according to RealPage’s eBook, “Proven in Any Market Cycle.” The story of how three companies outperformed during downturns is one of strategic pricing decisions made through the use of revenue management software. Greystar, Trammell Crow Residential and Carter Haston leveraged RealPage Revenue Management and applied asset specific strategies, experiencing some impressive results. Demonstrating the impact of effective pricing strategies Greystar sought a revenue management solution that could handle various product types, client strategies and market conditions. What the company found was that their data-driven revenue strategy delivered a sustained revenue premium of 3-7 percent. Needing a revenue management system that could help maximize revenue streams until the economy picked up, Trammell Crow realized more than a 3 percent boost in revenue. This was achieved thanks to a solution that determined unit pricing based on unit type, availability, move-in date, lease terms and more. Not only does RealPage revenue management determine the right price quickly, it also provides transparent analytics...