Using revenue-management programs to optimize rental rates is not a new concept, but perhaps not enough attention has been paid to the experts who make it work in the real world. The November issue of UNITS magazine will feature an article profiling the Laramar Group and how it uses a pricing manager whose daily duties [...]
Author Archives: Steve Lefkovits
Technical White Paper Available – Implementing an Apartment Dynamic Pricing System
Is revenue management just a “black box?” Have the technical challenges been solved in creating a software that can optimize the rent yield in apartment communities? What’s the math behind revenue management? A new technical white paper answers these questions and many more. In a recently published white paper, “The Implementation of an Apartment Dynamic [...]
Colonial Properties Trust – Gaining value from its Revenue Management System
Can a systemic approach to revenue management improve performance in a declining apartment rental market? Colonial Properties Trust’s experience says yes – with some caveats. Colonial Properties Trust has 119 multifamily properties with about 32,000 units. The average rent across their portfolio is $803, and the properties average 15 years old. Colonial Properties Trust uses [...]
Posted in Miscellaneous Tagged Colonial, declining, market, pilot, reit, results, revenue management Leave a comment
Revenue Management and Price Volatility
Analysts and apartment industry executives periodically question the impact of revenue management on the frequency of rental price changes. Does revenue management add price volatility? Or does it tend to smooth out pricing changes that humans make? Rent price volatility is considered a negative by those seeking predictable price forecasts and budgets. We worry that [...]
