The first annual Apartment Revenue Management Conference is a wrap and we are proud to say it was an overwhelming success. A special thanks to our sponsors and the industry leaders who shared their knowledge and insights into successful revenue management practices.
Over the course of the next few days, we will be utilizing this blog to post recaps from the various sessions presented at the conference. So be sure to check back often and we would love to hear your feedback on the sessions and what you take away from them.
Amenity Pricing Roundtable
Three of the industry’s leading pricing experts, Donald Davidoff, senior vice president strategic systems, Archstone; Dave Romano, vice president, pricing and revenue management, Equity Residential; and Kevin Huss, director of revenue, Resource Residential, sat down to discuss amenity pricing, the mechanics of determining price and how to get a handle on multiple amenities that can create value among prospects and residents. Here’s a run-down from the round-table discussion:
- Walk the property, understand its amenities – views, balconies, even square footage have different value to residents and prospects. Understand where the value is, establish a dollar amount for each amenity and blend this pricing with marketing to generate a perception of increased value
- Listen to your managers. They know what units always rent and which ones never rent. This information helps identify the amenities that generate greater value for residents, revenue for the community and can even pin-point undervalued and overpriced units
- Try to maintain consistent amenity values within a specific market but be aware it may not always work. Adjust pricing based on the unit’s exposure and amenity mix
- Amenity pricing as part of the effective rent strategy can range from 5-8% on the low side and 13-17% on the high side for a garden-style apartment. High rise communities can price amenities at 30-40% in the upper floors for views and highly sought after units with balconies
- Be careful. Bundling too many amenities together can quickly price your community out of the market
