Wall Street Takes Notice of Revenue Management
Wall 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.