Leveraging Revenue Management for Student Housing
This is a guest post from Andrew Bowen, Director of YieldStar Business Development, sharing his observations from this year’s NMHC Student Housing Conference.
This past week, the Arizona Biltmore played host to the annual NMHC Student Housing Conference. Of particular interest was the panel discussion surrounding rent models. I had been down this path six months earlier at the NAA Student Housing Conference in Las Vegas, where a comparable panel expressed skepticism about revenue management and its effectiveness in the student housing space. The tone at NMHC last week was decidedly different. Industry leaders like Donna Priess of the Priess Company, Bob Clark from Peak Campus Apartments and Miles Orth III from Campus Apartments, shared their insights on the topic of rent and revenue management.
The student housing industry is always progressing, but the change in approach to rent setting in the student space surprised and encouraged me. All participants on the panel indicated that they look at rates and leasing trends as compared to expected results on a daily basis. Even in this occupancy-focused industry segment, Mr. Orth shared that, “We’re not big fans of 100 percent occupancy. It means you left money on the table.” He continued to explain, “If you are not looking at products like YieldStar….you really need to.”
Mr. Orth is right on both accounts. If you’re solely focused on occupancy, you’re leaving money on the table, regardless of which industry segment you’re in. Secondly, if you’re not looking at YieldStar to help your organization balance the relationship between rent and occupancy and to maximize your revenue, you should be. More and more industry pioneers in the student housing space are leveraging YieldStar to outperform their competition.
Are you leveraging revenue management on student housing properties? Please share your thoughts and experiences in the comments below.