When it comes to revenue management, many question how to use it and whether it can really work for their assets and strategy. Contrary to common belief, revenue management is not about revenue maximization – it’s about optimizing revenue and achieving your investment goals, for any property type.
RealPage Senior Vice President of Revenue Management Amy Dreyfuss and RealPage Head of Data Science Rich Hughes will host a five-part monthly series of webcasts beginning in May. The series will dive deeper into revenue management and focus on specific asset strategies to manage the highs and lows of occupancy and the ups and downs of demand.
“It’s definitely not a one size fits all world,” says Dreyfuss.
Moving beyond a ‘gut feeling’ when setting rent prices
The series will explain why instinct in pricing rents isn’t always the best approach. A data-driven strategy that considers supply, demand, market demographics, lease term and other factors is essential.
There are many facets of revenue management that offer unmatched benefits throughout the rent cycle. Register for this webcast series to learn how RealPage Revenue Management can help you outperform for any asset class in any market regardless of your asset strategy.
Dreyfuss says the beauty of asset optimization tools is their objectivity and accuracy.
“Business acumen is great, and it’s important, but what even a savvy manager might conclude at first glance isn’t always what the numbers show to be the best decision,” she says. “Pricing rents is a great example. Sometimes, the asking price that will drive optimal bottom-line revenue for a property isn’t what your gut feel would tell you.”
And only a computer algorithm can crunch market factors, inventory, current and future occupancy forecasts, seasonal leasing history and pricing strategies to arrive at the perfect rate.
The series, which is designed for owners and operators/fee managers, kicks off May 29 with “BEYOND RENT: Improving Asset Utilization.”
Here are five key revenue management strategies covered in the BEYOND RENT series:
1. Improving Asset Utilization
The opening webcast will focus on how property managers can say “yes” to more prospects and existing residents during lease negotiations, with a price list that is competitive given availability and needs. Viewers will learn how to treat unit types as a mini-portfolio within the community being leased.
On Wednesday, May 29 at 1:00 pm CST, Dreyfuss and Hughes will discuss occupancy and average days vacant, along with how to improve economic and physical utilization of the asset. Register for “BEYOND RENT: Improve Asset Utilization.”
2. Enabling Sales
This webcast will provide a more in-depth view into how sales teams and the prospect or existing resident can find level ground. Both can achieve their needs, even when it comes to price. Key consumer needs – value (price), duration (lease term) and immediacy (move-in date) – are identified along with how they fit into the revenue management equation. Collaborative selling versus competitive selling will also be discussed on Wednesday, June 19 at 1:00 pm CST. Register for “BEYOND RENT: Close More Sales.”
3. Increasing Asset Value
The rent roll is the primary driver of value. When supply exceeds demand, a natural strategy is to lower rents. On the other hand, when demand exceeds supply, the strategy is typically to set higher rents. Finding that sweet spot dictates the true value of the asset.
The webcast, hosted Wednesday, July 17 at 1:00 pm CST, offers a look at three things that buyers consider when looking at an asset – rent growth, year-over-year metrics and hard occupancy cap. Register for “BEYOND RENT: Increase Asset Value.”
4. Using Revenue Management to Beat the Market
In the fourth webcast in the series, Dreyfuss and Hughes will focus on how revenue management systems can help a property or portfolio outperform, regardless of market conditions. See a synopsis of real estate cycles and learn how to let go of emotion and historical expectation when setting rents on Thursday, August 15 at 1:00 pm CST.
While concessions are often considered a necessary evil, they can actually be good for a property. And as market changes ahead may indicate stormy waters, the asset can still be fortified through revenue management best practices. Register for “BEYOND RENT: Beat the Market.”
5. Understanding Special Cases for Revenue Management
Some consider revenue management to be only for multifamily, especially higher-end properties. But that’s not true – it’s for every type of property or portfolio. On Wednesday, September 18 at 1:00 pm CST, Dreyfuss and Hughes will take a look at how revenue management is particularly effective for lease-ups and can excel for student assets. It’s even practical for mixed-use communities. Register for “BEYOND RENT: Lease-Ups, Student and Mixed-Use Cases.”
An effective revenue management strategy is based on optimizing revenue and achieving investment goals, not being able to maximize revenue. And RealPage Revenue Management can help you outperform for any asset class in any market regardless of your asset strategy. Register today!