Concessions and Other Superfluous Floating Devices

When I taught my kids to swim, I refused to use water wings. I thought, “Why teach them that they need floaties in order to swim? They actually slow down the learning process.” My children learned how to swim quickly and are strong and confident in the water. They are also fearless!

The same holds true for leasing apartments with concessions. The practice of discounting has become so ingrained in the leasing culture that it’s like wearing floaties in the pool: they inhibit the achievement of full leasing potential.

I’ve written before about how concessions are unnecessary if you’re using revenue management technology like YieldStar®. I’ve had the opportunity to train both veteran leasing associates as well as those who are completely new to multifamily. Once people are used to leveraging concessions to sell, it can be a challenge to move them to effective pricing. For the newcomers, effective pricing just makes sense.

Scott Morrison, Senior Vice President at Legacy Partners, and a YieldStar client shared a story with me recently about a new leasing associate he hired with no prior property management experience. He started using YieldStar revenue management right out of the gate. Here’s Scott:

This leasing associate had no preconceived notions about how to lease apartments, and was a rock star without relying on concessions. The reality is that it’s actually harder to swim with floaties than without. You too can be liberated from concessions!

Nothing beats experience, but to quote the American inventor Charles F. Kettering, “It’s amazing what ordinary people can do if they set out without preconceived notions.”

Please share your thoughts in the comments below.


Group Vice President, Asset Optimization Solutions, RealPage
Janine.Jovanovic@realpage.com

author photo two

Janine has over 15 years of experience in helping real estate companies capitalize on the opportunities afforded by innovative technology. As president of YieldStar and MPF Research, she is responsible for delivering RealPage’s revenue management and market intelligence solutions to the multifamily industry. Prior to joining RealPage, Janine was senior vice president of administrative services at JPI Companies and senior manager within KPMG’s real estate consulting practice, working with numerous industry leaders to maximize their organizations’ capabilities through the implementation of technology solutions, combined with business process and organizational redesign. Janine is a passionate advocate for technology within multifamily real estate and is featured often as a thought leader on the subject.

Follow PMI


Property Management Insider is brought to you by RealPage. Learn more.

 

© RealPage, Inc. All trademarks are the properties of their respective owners. 1-877-325-7243 | Terms & Conditions | Privacy Policy | DMCA Notice | Sitemap