(September 12, 2005)—RealPage, Inc., a leading provider of on-demand software and services to the multifamily industry, today announced that its YieldStarTM asset optimization systems are already producing positive results for staff at Camden Property Trust.
The YieldStar systems were developed to help owners and managers optimize asset values through revenue management, portfolio management and market intelligence. They combine the market research intelligence of M/PF YieldStar—which is celebrating its 44th anniversary—with the on-demand functionality found in RealPage’s OneSite®, CrossFireTM and VelocityTM systems. Camden began a pilot of YieldStar at five properties earlier this year.
“We knew that the metrics in YieldStar worked because the metrics are what represent the best practices of our community managers,” said Keith Oden, president and COO of Camden Property Trust. “We were really testing more functionality than we were theory. I don’t need to be sold on the theory of revenue management. I’ve seen it in too many other industries and it is past time for us to be doing something more sophisticated.”
Jeffrey Roper, president of M/PF YieldStar, sees YieldStar as the strategic first stage in developing a comprehensive revenue management program for focusing on top-line NOI. “YieldStar enables you to quickly identify opportunities where you are underpricing or threats where you are overpricing a particular floor plan,” said Roper. “It’s a powerful tool for optimizing rental revenue for both stable and lease-up properties, using advanced market response and forecasting models to make daily rent recommendations. It also recommends optimal new and renewal floor plan and unit-level rents that consistently maximize revenue.”
It’s those recommendations that have been met with much approval from the staff at Camden. “What primarily encouraged us was the acceptance of our on-site teams to an entirely different sales practice with regard to selling a yield management price as opposed to the negotiated ‘I’ve got to talk to my manager’ price,” said Oden. “They have embraced it and they’ve been empowered by it.”
Oden added that RealPage has worked closely with Camden to ensure that YieldStar meets the needs of the company. “The RealPage people have been incredible in the responsiveness that they have provided.”
Camden intends to roll out YieldStar to all its sites by the end of 2005. According to Oden, it was a decision agreed upon by all involved. “At the end of the day, when posed with the question, ‘If you were the CEO of Camden for a day, would you recommend that we roll this out in our portfolio beginning tomorrow?’ It was a unanimous vote from not only our on-site staff, but also from the district managers and regional vice presidents that were involved in the pilot. That’s all I needed to hear.”
Camden Property Trust is one of the largest multifamily real estate investment trusts (REITs) in the nation. It specializes in several disciplines within the residential real estate industry, including providing expertise in the ownership, development and management of apartment home communities; in the acquisition, disposition and redevelopment of properties and in consulting, building and construction services for third-party clients. For more information, please visit www.camdenliving.com.
M/PF YieldStar (formerly M/PF Research) provides revenue optimization and market intelligence products and services to multifamily housing owners and developers. It maintains the largest database of accurate and timely apartment market information in the industry, offering investors, developers, owners, and lenders the information and insights needed to make sound business decisions. For more information, please visit www.mpfyieldstar.com.
Located in Carrollton, Texas, a suburb of Dallas, RealPage provides property management products and services to more than 20,000 apartment communities across the United States. It currently has four major product lines: OneSite© on-demand property management systems that automate property management functions while providing real-time access to important data; CrossFire™ on-demand property marketing systems that automate and enhance the process of capturing and entering leads; YieldStar™ on-demand asset management systems that help owners and managers optimize asset values through revenue management, portfolio management and market intelligence and Velocity™ convergent billing systems that help accelerate payments for rent, utility charges, late fees and small balances.