Revenue Management Plays a Key Role in the Disposition Process

 

With 44,000 multifamily units coast to coast, Westdale Asset Management recently disposed of 1,800 units using YieldStar. There’s a myth in the multifamily industry that revenue management complicates the disposition process. “We didn’t do anything different with YieldStar when we decided to sell,” explained Trevor Bert, controller at Westdale. “In the past, buyers looked for concessions that could burn off. Buyers today care most about total rent collected.”

While Westdale continued leveraging YieldStar configured for revenue maximization during their disposition, some YieldStar clients adjust the system to favor rent in advance of marketing assets for sale. Ultimately, the decision to change YieldStar strategy at the time of disposition is client specific.

So what makes it different buying a deal on YieldStar? “Individual leases on a rent roll are more variable,” said Bert. “But income is more consistent. During the 6 months this deal was under contract, the buyer wanted monthly rent rolls and operating statements. We didn’t have peaks and valleys during the contract period, which can put a deal at risk. Using YieldStar set us up for the sale and helped us achieve the results we wanted.”

Not only does Westdale capitalize on revenue management for dispositions, it has also changed the way they approach acquisitions. “If we have an opportunity to buy a property that’s not using revenue management, there’s likely to be more potential for upside.”

For more information about revenue management, contact us as Results@YieldStar.com

 


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

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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.

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