Six Reasons Your Property Needs a Revenue Management System

No successful business professional would close a deal without first understanding all the facts. But when revenue management decisions are made based on limited or skewed information, a property management company can lose considerable amounts of money and unintentionally drive away business. For property managers, getting apartment rents right is often a major challenge. But with the right revenue management system, successfully leasing and renewing can be a breeze. Here are our top 6 reasons to implement a revenue management system for your apartment community today. 1. Reduce Fair Housing Exposure Using a revenue management system to generate pricing reduces exposure to Fair Housing infractions because subjectivity is eliminated when using pricing that is predetermined by an objective source. 2. Take Out the Guesswork To make the best choices when it comes to setting rent rates, access to real-time information is key. Many property managers make decisions based on manual calculations, leaving room for error and taking up time and energy. By adopting a revenue management system, this work is done automatically. It’s important to use revenue management software that incorporates variables like available inventory, leasing velocity, recently achieved rental rates, and market position to help make informed decisions on pricing. The right revenue management system points out factors often overlooked when calculating rent rates, helping give your portfolio an edge over the competition. 3. Create a Sense of Urgency “A good leasing professional always says ‘yes,’ but yes with a price,” explained Andrew Bowen, revenue management expert and Industry Principal at RealPage. For example, if a property continuously adjusts rates based on current internal/external conditions, prospective residents have the incentive to lease quickly and lock in a great deal before it’s gone. By being honest with prospects and letting them know when de...