Wall Street Takes Notice of Revenue Management

 

Wall Street Notices Revenue ManagementWall Street is taking a closer look at revenue management in the multifamily industry. The article “Landlords Upgrade Rent Monitoring” by the Wall Street Journal discusses how the industry is beginning to embrace and use technology to quickly price apartments based on supply and demand.

Revenue management has been used by the airline, rental car and hotel industries for decades, and was introduced into multifamily real estate in 2003. With less than 10 percent of conventional investment grade apartment communities currently using revenue management today, there is tremendous room for growth.

The results of using revenue management solutions such as YieldStar are clear: as the article points out, property owners and managers that have adopted revenue management, like our friends at UDR, are experiencing a clear revenue premium of two to five percent over those who still rely on traditional pricing methods.

After you read the article, please share your thoughts in the comments below. I’d love to hear them.

 


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.

  • Andrew Bowen

    I find it interesting that althought the article drifts into other technology currently being utilized by the multi-family industry, the author was savvy enough to realize that it is rents that has the eye of Wall Street.

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