Sponsored by Rainmaker LRO

Do revenue management systems still help multifamily companies create incremental yield? Researchers will present specifics on the relative performance of revenue-managed companies versus non-revenue managed companies over time and in various markets.

Strong seasonality creates expectations, risks and opportunities for both renters and management companies looking to benefit from a volatile market. Revenue analysts are still working on addressing the cultural challenges of re-ordering the traditional expiration pattern in favor of a smother profile, while managing the marketing risks that come from expecting new renters to closes leases in December and February.

Quantitative and customer experience experts will frame and synthesize an understanding of how to properly integrate the costs of turnover with yield optimization. Industry leaders will share information on variable and fixed turn costs, advertising strategies and when it might make sense to let a resident go in favor of an expected new renter who is willing to pay a rental increase.

Optimizing the Entire Lifecycle of an Asset

The discipline of revenue management applies to more than optimizing stabilized cashflow.  When assets are in transition during lease-up, renovation and disposition RM can provide key developers, buyers and value-creators in understanding the potential of their assets.  For merchant owners who buy to create value, revenue management may provide significant operational upside to complement repositioning efforts.  Presenters will discuss their experiences and perspectives using revenue management during investment evaluation and transitional periods.

Student housing, corporate housing, affordable housing, and senior housing all have limiting or differentiating factors that make revenue management a specialty exercise. This session will explore the possibilities in each sector and contribute discussion about other types of performance optimization that fit their leasing patterns.

Competive assessment is essential to asset valuation at sale, debt sizing, and incremental capital investment decisions. This session will review data sources for revenues and expenses, key performance indicators, measures of risk and perhaps even provide a roadmap to a future of optimizing NOI rather than just revenue.

Session leaders will present and facilitate a group discussion on amenity pricing: how to determine amenities; valuing them and trying to get a handle on how multiple amenities interact in creating an impression of value with prospects.

We’ve asked revenue management experts from other sectors to come to ARM and share their stories about the challenges and value of yield optimization, and the next level of challenges they are taking on in seeking to find new sub-markets, create perceived value and create offers that close. We’ll ask them to address the travel industry’s re-evaluation of which marketing channels and partners to use to drive demand and publish/limit offer distribution and how their bottom line is impacted by limiting marketing distribution, reducing price transparency and controlling more closely the offers consumers receive.

Revenue managers primarily present just two kinds of offers to renters – price-based offers and lease-term offers. Other industries use a variety of pricing strategies to create compelling offers including cross-promotion, non-cash incentives, service upgrades, bundled offerings, and pre-purchased coupons with high breakage rates. We’ll use this session as a chance to brainstorm and share different ways to cut through the clutter and offer renters incentive value they appreciate.

Traditionally multifamily companies enter into annual contracts to purchase their primary advertising on a subscription basis. With the advent of pay-per-click and other variable advertising, revenue managers and their marketing counterparts have the potential to make targeted investments to maximize demand under certain circumstances. When does it make sense to do so and how is that done? How long does it take for a paid click to become qualified demand?