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