Smaller landlords turn to software for pricing multi-family units

Miami /
Nov.November 30, 2011 06:26 PM

While large landlords have long been savvy to analytics software for revenue optimization, smaller landlords are increasingly using software such as Rainmaker LRO to price units at multi-family properties, the New York Times reports.

Using algorithms similar to those used by websites pricing hotels and airfare, the software provides landlords with the highest possible price they can charge for a specific space at a certain time. And these days, smaller players are getting in on the game.

Steve Lefkovits, CEO of Emeryville, Calif.-based Joshua Tree Internet Media, a company which provides information to the multi-family industry, hosts an annual conference for apartment revenue management.

“The thing that was most interesting to me about this year’s conference,” Lefkovits told the Times, “was the number of smaller owner-operators, with 3,000 to 10,000 units, that have invested the time and energy into adopting a revenue-management strategy.”

Equity Residential, which owns 8,290 units in the New York metro area, 4,057 of which are in New York City, reports revenue increases of between 3 and 5 percent when using Rainmaker.

Now smaller landlords enjoy similar gains. Bryan Pierce, the revenue manager at Holland Residential in Vancouver, Wash. uses Rainmaker LRO at 63 of the 70 properties Holland controls.

“Maybe this person is paying 15 percent below market, and as much as we love them, maybe it’s time to let them move on and capture that 15 percent.” [NYT]


Related Articles

arrow_forward_ios
Hyperion Group CEO Rob Vecsler, Starwood Capital CEO Barry Sternlicht and a rendering of 350 South Australian Avenue (M18 PR, Wikimedia)
Starwood acquires stake in West Palm Beach development site
Starwood acquires stake in West Palm Beach development site
Estate Companies pays $15M for downtown Hollywood Opportunity Zone site
Estate Companies pays $15M for downtown Hollywood Opportunity Zone site
Estate Companies pays $15M for downtown Hollywood Opportunity Zone site
Nuveen Real Estate CEO Mike Sales and LaVida apartments (Eileen Escarda)
Nuveen pays $98M for Blue Lagoon apartment complex in Miami
Nuveen pays $98M for Blue Lagoon apartment complex in Miami
West Palm Beach workforce housing advances with $53M construction loan
Downtown West Palm Beach workforce housing project scores $53M construction loan
Downtown West Palm Beach workforce housing project scores $53M construction loan
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
ARI Financial Group CEO buys Hialeah multifamily-retail portfolio for $42M
ARI Financial Group CEO buys Hialeah multifamily-retail portfolio for $42M
ARI Financial Group CEO buys Hialeah multifamily-retail portfolio for $42M
Abacus Capital Partners pays $125M for Plantation apartments
Abacus Capital Partners pays $125M for Plantation apartments
Abacus Capital Partners pays $125M for Plantation apartments
Blackstone chair, CEO and co-founder Stephen Schwarzman and RangeWater Real Estate CEO Steven Shores with the complex (Getty, LinkedIn via Shores, One Boynton)
Blackstone buys Boynton Beach apartment complex for $171M
Blackstone buys Boynton Beach apartment complex for $171M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...