More Lease Options Means More Signed Leases For Vintage Realty
Ashleigh Von Einem - Vintage Realty
In Louisiana, the constant ups and downs of the oil business in various local markets make it tough to know exactly where to set rents to achieve the right balance of occupancy and revenue. Charge too much and occupancy drops uncomfortably; too little, and you’re leaving money on the table. And the landscape is changing all the time.
At Vintage Realty, onsite teams once used monthly market rent surveys as the basis for quarterly meetings convened to come up with rent pricing. But basing rents on what others were charging didn’t guarantee the ideal rents to drive maximum net revenue, particularly since Vintage is all about outperforming their competitors.
Limited Leasing Options with Set Pricing
What’s more, they could offer prospective renters only limited lease terms (6-month to 1-year) with set pricing; it was simply too time-consuming to attempt to accurately calculate more options their leasing agents could use to help close leases with any degree of confidence the pricing was right.
Excessive Concessions Hurting Profits
And like many property managers, Vintage relied on concessions to sweeten lease deals when seen as necessary – a “blunt instrument” that often compromises the lifetime net value of a lease.
No More Guesswork with Yieldstar
Today, Vintage enjoys the confidence of knowing they’re making the right decisions. RealPage’s YieldStar weighs a broad range of criteria including inventory, competitor pricing, amenities, lease expirations, seasonal fluctuations and more to scientifically arrive at an ideal price for every unit, every day. There’s no more guesswork.
“YieldStar allows us to react quickly to a changing market,” says Von Einem. As market conditions fluctuate, YieldStar constantly makes adjustments in suggested rent pricing – something Vintage once did only quarterly, based on limited information.
Tailored Quotes Without Relying on Concessions
And, Von Einem says, YieldStar allows Vintage’s leasing agents to tailor quotes to people’s needs without quickly turning to concessions to close leases. Rather than a couple of options, prospects can choose from longer or shorter lease terms, various move-in dates and other variables to get the rent where they want it. Every option has been carefully calculated by YieldStar to generate optimal profit – something no human, or even team, could do on a regular basis.
The results? In markets depressed by oil industry doldrums, Vintage has been able to hold its own where others haven’t. And they’re outperforming competitors in strong markets as well, increasing rents without damaging occupancy.