Official Rules

2020 Yardi Celebrates Onsite Teams Day Sweepstakes NO PURCHASE NECESSARY. PURCHASE WILL NOT ENHANCE CHANCES OF WINNING. Sweepstakes is open only to legal residents of the 50 United States, the District of Columbia and Puerto, who are 18 years of age or older (except residents of Alabama and Nebraska who must be 19 years of age or older) at the time of entry. Employees, officers and directors of Yardi Systems, Inc. (“Sponsor”), and its respective subsidiaries and affiliated companies, advertising, promotion, or production agencies (and each of their respective IRS dependents, immediate family members [children, spouse, parents, siblings, and their respective spouses, regardless of where they reside] and individuals residing in the same household of each, whether or not related) are not eligible to participate. Void where prohibited by law. By participating, entrants agree to these Official Rules and the decisions of the Sponsor, which are final and binding in all matters relating to this Sweepstakes. ENTRY PERIODS: The Sweepstakes Promotional Period begins on August 9, 2020 at 8:00am PDT.  Entries must be received by 5:00pm PDT on August 13, 2020. There will be five drawings after 5:00pm PDT on August 13, 2020. HOW TO ENTER: During the Promotional Period (i) visit the Yardi’s social media channels, RENTCafé Genius social media channels, and/or Yardi Breeze social media channels (no purchase necessary); (ii) screenshot the contest image, answer who you are thankful for and why, and post to the Participant’s personal social media account on Facebook, Instagram, Twitter, or LinkedIn; and (iii) tag Yardi (@yardi for Facebook, LinkedIn, and Twitter; @yardisystems for Instagram) and use the event hashtag #APTeamsDay. Limit one (1) entry per person per approved social media platform (Facebook, Instagram, Twitter, LinkedIn) during the Promotional Period. Any attempt by any person to obtain...

Global Perspective

For Richard Gerritsen, regional director of European sales at Yardi, leadership is all about creativity. “Technology changes the world. We play our role in this as technology partner, but it is also about finding the right balance between costs and benefits. We try to encourage our sales teams to define the best solutions for our clients. At the same time, it is important that our salespeople, and all other staff, feel comfortable in their own skin.” Dutch real estate publication Vastgoedmarkt recently spoke to Gerritsen about work/life balance, the need to learn from successes and failure, and the willingness not to think in just commercial terms. The interview below is reprinted with permission. Difficult circumstances Gerritsen notes that many of his team members are finding living circumstances difficult due to the COVID-19 pandemic. “I live outside the city and, after a day full of video conferences, I hop on my bike and I can be out in the countryside in just a few minutes. By the time I return home, I feel refreshed and have recharged my batteries.” “It’s important to recognize that we have young people working at the company who have an urban lifestyle. They live in apartments in areas where there’s normally plenty going on in the evenings, and they’re used to spending a lot of time socializing away from home. Their lives have been enormously diminished by the crisis; living between the bed, sofa and dinner table. Some of them are finding it a real struggle. Set against this, our work is about bringing across a message with great energy, passion and enthusiasm. The combination is hardly a recipe for success. It’s very difficult to know how to help them in this situation.” For Gerritsen, leadership in these times becomes...

YASC Digital

Yardi is working to keep clients informed and connected during a challenging time for the real estate industry and the nation. Those efforts will continue in May with a one-of-a-kind digital Yardi Advanced Solutions Conference (YASC), offered entirely online for the first time and free to clients. In some respects, this special edition of spring YASC won’t differ from what it’s been for two decades — a three-day educational event (Tuesday to Thursday, May 19-21) for clients to refresh their Yardi software skills and preview real estate technology innovations. “We look forward to welcoming our clients and prospects to classes that reflect the same great learning and skill development opportunities they would have with us in person,” said Tim Hoover, creative director for Yardi and producer of the biannual U.S. YASC events. “We’re excited about YASC Digital, which will feature spotlight sessions with Yardi executives, chances to interact and engage with other attendees online, and more.” Participants in YASC Digital will be able to access more than 125 courses in 18 learning tracks on demand; May 19-21. This approach offers registrants flexibility for self-paced learning and for creating a personal plan that meets their business needs. Market-based registration tracks will make class selection a breeze. As of today, Yardi plans to present the year’s second U.S. YASC as usual in October. Last year’s conference drew over 2,500 clients and Yardi staff members to San Diego. Fall YASC registration information is available here. Clients will receive an email on May 12 with an access link to participate in YASC...

Commercial Outlook

Last week, Yardi Matrix hosted three webinars that provided insight on how the COVID-19 pandemic is impacting the self storage, multifamily and commercial real estate markets. Let’s look at the insight on the commercial market, which is extensive. This post continues our first commercial sector recap, which you can read here. Feast and famine in industrial The industrial sector witnesses mixed results from shelter in place mandates. E-commerce is roaring as consumers and businesses go online to purchase necessities without leaving home. Logistics and distribution are regarded as essential services, largely immune to shut down mandates. These niches are among the few still adding jobs. Walmart has posted 150,000 new positions, followed by Amazon with 100,000 and CVS with 50,000. They’re offering enhanced benefits as well as boosted hourly wages. Not all industrial tenants are forecasted to whether the downturn. Small business that occupy multi-tenant industrial spaces could dissolve. Most tenants aren’t positioned for unlimited viability. Multi-tenant, smaller organizations compose nearly 45% of industrial space which will have a notable effect on overall industrial performance. Retail on thin ice with few exceptions Grocers are thriving, but the boon is not expected to last long after the COVID-19 recovery. Before the pandemic, cash flowed away from grocers to restaurants and meal kit delivery services. Social distancing has hamstrung both of those competitors, forcing consumers back to store aisles. Grocers are hiring as well as grocery deliver companies. Such businesses are expected to add 300,000 workers over the next three months. But as the crisis subsides, grocer revenue will return to normal. No matter what, its clear that retail landlords will be hit hard. Social distancing policies have reduced and, in many cases, eliminated transactions at brick-and-mortar stores, which were already experiencing a decline with the...

Attracting Renters

The Bronx, Brooklyn, Manhattan, Queens, and Staten Island: together, they make up the most vibrant city in the world. But New York needs no advertising. Any New Yorker will tell you that each of the five boroughs has its own unique charm. So, what do renters expect when looking for an apartment in NYC? We compiled a short list of tips to attract potential renters in the Big Apple. Keep it clean Looking for an apartment that’s in move-in ready condition is a priority for most people looking to rent in New York City. As such, hiring regular, professional cleaners for the entire apartment building can do wonders to attract new renters. It also shows those who already live there that the building management looks out for their well-being. Make sure any maintenance issues are handled before a showing—no matter how small. Keep it safe Whether it’s Brooklyn apartments for rent or apartments in Queens, feeling safe in the city that never sleeps is paramount for renters. This is why ensuring the safety of the premises is crucial. No matter whether your renters are in it for the long-term, maintenance support is key. Moreover, regular check-ups and upgrades to security systems and locks are essential. Keep it close Proximity to work, school, or anything of importance to the renter is an amenity most NYC renters would be willing to pay big bucks for. Once a prospect shows interest in your rental, it’s most likely because they are happy with the location or are willing to compromise. In NYC, proximity to public transit is one of the top criteria renters use when searching for apartments. Advertise convenient transportation options near the property’s location, but always be honest. Staten Island might be just a ferry ride...

Green Amenities

With environmental consequences ever more present, the push for green construction and green amenities is growing. At first glance, the way buildings are constructed may not seem to be a high priority in the fight against climate change. But, in the U.S. alone, they make up about 40% of the country’s CO2 emissions. Like many other industries, the multifamily sector is taking steps to adapt as green construction is encouraged by both investors and consumers. Furthermore, the regular presence of environmental news promotes a green lifestyle and encourages people to take action individually. Specifically, in the rental real estate market, this has led to an increase in the demand for green amenities. This is especially true among Gen Z and Millennial renters, who are quickly becoming the number one driving force of amenity demand. Enter the rise of the green renter. Typically, eco-friendly renters are willing to spend more on a product for the promise of being green—either in and of itself or because of its production process. Much more aware of individual carbon footprints, these renters gravitate toward buildings that were built with reclaimed materials, are energy-efficient, and create less waste. Meanwhile, community amenities that are on the rise reflect the renters’ desire for a healthy lifestyle. In particular, they ask for fitness centers and on-site gyms. However, the trend among younger renters is to exercise not only the body in the traditional sense, but also the mind and the soul as well—which gave rise to wellness amenities, according to National Multifamily Housing Council’s 2018 Disruption Report. This equates to facilities that are equipped with smart technology to guide residents as they work out, track data, and progress, as well as more relaxed areas where they can either engage with the community or...

Create a coworking spot in your community...

With the rise of freelancing and digital nomadism, coworking spaces are among the most sought-after amenities today. Although many locations are specifically designed to be shared office spaces, coworking spots are becoming ever more present in multifamily buildings and communities. In fact, many buildings with apartments for rent in Sacramento, Brooklyn, Houston, or Austin now offer shared workspaces where residents can not only work, but also maintain a healthy work-life balance and practically eliminate their commute. As more amenities for remote workers are integrated into residential construction, shared workspaces are replacing the club rooms and lounge areas of years past. The good news is that designing such a place inside of a living community is more versatile than designing an actual office space because you have more freedom for creativity. Granted, certain amenities should be present for the general needs of remote workers; and, some amenities will cater to the specific needs of different professions. General amenities For every working space, provide high-speed internet, comfortable chairs, and well-positioned tables and desks. Moreover, because connectivity is essential for remote workers, invest in an internet package from a trusted provider. But, be careful about the positioning and capacity of outlets to prevent any uncomfortable or even dangerous incidents. As for the working space itself, create a layout that’s flexible and that people can adapt for both group work and solo sessions. Furthermore, attend to the well-being of those who will use this facility; most young renters—who happen to be the majority of the digital nomads—place great emphasis on wellness amenities. As such, ergonomic chairs and warm-light systems are a must. Moreover, go the extra mile by providing services, as well. Tea, coffee, and water are essential, and you can also add printers and scanners for that...

Get More Signed Leases...

Leases are the backbone of your business. Getting them quickly signed leads to fewer vacancies, more revenue, and happier stakeholders. But to get there, you must convert your prospects. These six tips will help you get the signatures that you need with less waiting. Close the deal in prospects’ minds. Getting a lease signed begins as early as the property tour. Whether the tour is virtual or in-person, you can use language that promotes the sell. Verbally help prospects see themselves in the unit: “There are so many options for placing your couch in this spacious living room,” or “Your kids will love the recently renovated playground.” When it is time to sign, prospects already have a clear idea that their lifestyles are a fit in the community. Incentivize signing the lease within 24 hours of the agreement. Verbal interest is great, but it doesn’t pay the bills. To maximize a sense of urgency and minimize vacancy time, create an incentive for signing the lease within 24 hours. Perhaps waive the garage rental fee for a month or provide discounts for local services like pet sitting and dry cleaning. Offer what’s valuable to the prospect in exchange for what’s valuable to you, their commitment. Guide indecisive prospects with facts. Use your property’s desirability to your advantage. Gather data on how quickly units lease in the community, in the neighborhood, and any competitive advantages of renting promptly (like seasonal promotions). If there are other value-add features to your community, don’t hesitate to share them. Follow your property facts with a signing incentive for maximum impact. Make it easy to sign the lease. Make it simple for prospects to become residents. First, streamline the application and renewal process using leads-to-leases enabled property management software. Then ensure...

Smarter Senior Living...

It’s never too late to make a resolution for the New Year, especially if it improves efficiencies at your senior housing properties. Resolve to go mobile! When you make the transition to mobile charting, you pave the way to success. What is Mobile Charting? Mobile charting is simply the act of entering resident information on the go. Care staff enters resident data into Yardi Senior Living Suite using a mobile device. Resident data can then be conveniently and securely stored in cloud. Why makes the transition from paper to mobile charting? We’re glad that you asked. Here are five benefits to making the switch. 5 Benefits of Mobile Charting Mobile charting increases care staff time with residents. When staff can’t access a mobile device to enter resident data, they must interrupt their rounds to do so. That means less time engaging with residents and more time tethered to a desk. With mobile charting, care staff naturally integrate data entry into their resident visits. Mobile charting improves accuracy and consistency of resident data. Remember how staff scurries between residents’ rooms and office computers to enter data? In the shuffle, they struggle to remember details from one visit to the next. This may result in inaccuracies and missing data. With mobile charting, there is no lag time between receiving and entering data. Immediate record keeping results in greater accuracy and better care for residents. Mobile charting enhances accountability amongst care staff. With paper charting, it isn’t always easy to tell who altered a file or when. When a staff member logs into Yardi EHR on a mobile device, their contributions to resident files are marked with a date and electronic signature. The automatic features enhance accountability and record keeping. Mobile charting protects resident data. Sheets of...

Pace Setters

Appropriately for the “acceleration” theme of its global conference this week, Realcomm recently hosted a webinar in which several experts, including Yardi’s Alex Stanton, commented on the rapid pace of change in commercial real estate and new data management technology entering the marketplace. Stanton, regional director of commercial sales, said the movement toward an integrated concept of information management is so profound that it’s altering the very concept of the lease. “Client,” for example, no longer means a single entity but instead a broader category of people to be managed with increasingly granular information. “Space” encompasses coworking, parking and amenities as well as traditional offices. “Tenants” are morphing into “guests” whose service expectations require the collection and management of an expanding body of information including such non-real estate sources as weather and traffic information. Companies are creating digital twins of everything from their buildings to their tenants and the environment surrounding them. The best prescription for managing change, he said, is aligning IT resources with a company’s strategic direction. “When there’s a nice marriage of business and IT, there’s stronger direction and execution on investments, efficiencies and other actions,” Stanton said. Other participants and their thoughts on managing change included: Sam Wong, head of analytics and data science for global real estate manager QuadReal Property Group. When building its data platform from scratch, QuadReal focused on gaining insight and action, not just reporting, and its attention to the information management and database portions of the solution stack equaled that devoted to business intelligence and analytics. “We also sought a platform that could grow in capability and size so we don’t just worry about what we need to do in the next year or so,” said Wong, who managed both the business and technical teams...

Trojan Apps

Google has eliminated 300 apps from its online store after discovering a secret plugin silently installed across several Android devices. The seemingly innocuous apps were all secretly outfitted with the WiredX botnet. WiredX commandeers vulnerable Android phones and tablets, using the gadgets to kick off a DD0S attack. While Google does not yet have an official account of just how many devices currently host the WiredX botnet, Chad Seaman, a senior engineer at Akamai, a cyber security firm, estimates the number could reach 70,000 or more. “I know in the cases where we pulled data out of our platform for the people being targeted we saw 130,000 to 160,000 (unique Internet addresses) involved in the attack,” said Seaman. Silent, but Deadly The initial WiredX outbreak occurred on August 17th, when several Content Delivery Networks (CDNS) reported similar DDoS attacks. A search for the source eventually landed at the doorstep of Google’s Play Store, prompting the tech firm to pull hundreds of affected applications from its store and initiate procedures to remove the malware from infected devices. “We identified approximately 300 apps associated with the issue, blocked them from the Play Store, and we’re in the process of removing them from all affected devices,” a Google spokesperson said. “The researchers’ findings, combined with our own analysis, have enabled us to better protect Android users, everywhere.” The apps chosen to host the plugin provided genuine services, like ringtones and video players, but included hidden malware designed to commandeer the device for potential DDoS attacks. Once powered on, any infected phone or tablet mainly served as a soldier in a broader DDoS army – all unbeknownst to the user. While the apps themselves operated as promised, the malware surreptitiously connected to an internet server run by the WiredX...

Prescription Chocolate...

Cocoa flavonoids could be the key to fighting age-related mental decline and improving cognitive function in older adults. For years, doctors and scientists have been on the lookout for a magic pill, some daily dose able to fight age-related cognitive decline and potentially stop dementia in its tracks. While Mary Poppins counseled a spoonful of sugar to cure most ills, the real nutritional superstar may actually be chocolate. According to a recent article published in Frontiers in Nutrition, cocoa flavonoids- one of the main ingredients in your typical candy bar, could enhance human cognition. “Through a variety of direct and indirect biological actions, in part, still speculative, cocoa and cocoa-derived food have been suggested to possess the potential to counteract cognitive decline and sustain cognitive abilities, particularly among patients at risk,” explain the study’s authors. “Although still at a preliminary stage, research investigating the relations between cocoa and cognition shows dose-dependent improvements in general cognition, attention, processing speed, and working memory.” A Recipe for Healthy Brains Chocolate’s potential to positively impact cognitive function derives from the cocoa flavonoids influence on cardiovascular function as well as its potential as a neuromodulator. In addition to flavonoids, chocolate also contains other “functional ingredients,” including methyl xanthine caffeine and theobromine, which paired together can also positively influence neurocognitive function. “Moreover, cocoa flavanols…exert a protective role on cognitive performance and cardiovascular function specifically impaired by sleep loss, in healthy subjects,” write the study’s authors. “Together, these findings converge at pointing to cocoa as a new interesting nutraceutical tool to protect human cognition and counteract different types of cognitive decline, thus encouraging further investigations.” Sweetening the Golden Years The study’s authors also delve into the possibility regular chocolate consumption could be beneficial for older adults. In addition to protecting cognitive...

Credit Trends

With winter now behind us, property management staff must now prepare for what looks to be a busy spring leasing season. More than ever, management companies are using screening data to maximize the number of potential leases, negate financial risk, and keep their communities safe. Data aggregated by Yardi Resident Screening forecasts a greater chance for higher occupancy and stronger tenant performance this spring due to increased application traffic, job growth, and continued improvement of applicant credit quality. Application Traffic vs. Job Change The below graph shows the correlation between job change (blue line) and application traffic (red line). As jobs are created, application traffic tends to increase, which indicates that when people are employed and feel financially stable, they will consider moving to a larger unit or luxury community. The sharp decline in 2008-2009 represents the time frame when the economy bottomed out and went into a recession. Now, with a recovering market and more available jobs, potential renters are looking for better places to live. In addition to this, property management companies can continue to cast a wider net when filling units due to long-time homeowners looking to downsize, and a millennial generation that is still avoiding the permanence of home ownership. Credit and Screening Performance Trends Overall, credit quality is improving which means there are less instances of medical debt, foreclosures, and bankruptcy on an applicant’s credit report. Data shows an increase in potential renters with thin or no credit signifying that millennials are still a mainstay in the applicant pool. Other factors leading to positive credit trends can be attributed to longtime homeowners selling their homes to move to apartments.  Downsizing from home ownership to renting an apartment provides less upkeep responsibility and more flexibility in lifestyle. This pool of...

Dementia Tags

As a dementia crisis looms, one Japanese city has ditched GPS locators and other wearable devices in favor of low-tech stickers for tracking elderly patients.   While dementia locators have been around for a couple of years, a new system developed in Japan aims to fix some of the issues inherent t wearable tracking devices. Ditching pendants and pocket GPS trackers, a company in Iruma, Japan has developed a QR-code tagging system for dementia patients. Beyond the ID Tag Typical medical ID bracelets and patient wristbands still serve an important function, but anything wearable can be damaged or lost. Because dementia patients are often incapable of supplying basic information about their identity, the ability to affix a permanent identifier has become increasingly important. While microchips may seem like an obvious solution, without the tools to read an implanted device any subcutaneous identifier has limited utility. Similarly, GPS trackers must often be within range of satellite or mobile service to be useful. As a result, there’s a growing need for a practical, low-cost and easily managed solution. The one-centimeter QR stickers recently deployed in Iruma are water resistant and designed to last up to two weeks. They can be affixed to a fingernail or toenail, and can be read by any free QR code mobile app. The code itself includes a unique identifier, along with the name, telephone number and address of the patient. The service, which is free, was just launched in November of this year to positive response. “There are already ID stickers for clothes or shoes, but dementia patients are not always wearing those items,” a Japanese official explained to AFP news. “Being able to attach the seals on nails is a great advantage.” A Crisis Point The World Health Organization estimates some 36...

Empire State Success

In 2004, Yardi opened its doors in Glen Head, New York as part of the BJ Murray acquisition. The team of 16 employees set out to define a course for the fledgling office. “We faced the challenge of merging functionality, converting client platforms and creating a shared culture,” recalls Richard Malpica, Vice President and General Manager, Eastern US, Sales at Yardi. “I don’t know if there was an official strategy for [merging cultures]. I think we made it clear, from a Yardi perspective, that the company was committed to integrating the group and growing together,” says Malpica. “It was really a matter of understanding people’s skills and desires and plugging them into our framework. They can create a new trajectory for a long-term career with the company.” Over a span of several years, the New York office steadily found its way. Employees discovered new applications for their talents and practical ways of supporting one another along the journey. In addition to merging corporate cultures, Yardi found itself adapting to the collective New York culture. The market proved to be rich with opportunity but difficult to conquer. For the Santa Barbara-based company, the challenge of the New York market was three-fold: First, the company had to establish a local presence and reputation. “There is a New York thing, like anything from anywhere else is kind of irrelevant, right?” said the New York native. “New York clients like to know that you can jump on a train, get in a car, and be there in the afternoon or tomorrow morning. Why do you have to get anything from anywhere else? Why isn’t it here?” Once a local flavor is established, Yardi strived to form relationships in a market where loyalties are strong and tough to penetrate....

Yardi RENTmaximizer Market Analysis...

In response to our clients’ needs and the market’s demand for a transparent rental pricing and revenue management system, we developed Yardi RENTmaximizer and introduced it to clients in January 2011. While it takes time for any new product to gain wider market acceptance, Yardi RENTmaximizer was quickly adopted by Yardi clients from the beginning, and its adoption rate continues to grow exponentially. In the summer of 2013, Yardi acquired Pierce-Eislen, a leading multifamily market intelligence firm specializing in property ownership information, sales history information, and property valuation for acquisition and disposition of properties. As one element of its valuation reporting, Pierce-Eislen blind-shops more than 9.2 million units three times per year. After the Pierce-Eislen acquisition, our software development team began to integrate this unit type-level data into Yardi RENTmaximizer. We realized that we could use this data to compare RENTmaximizer properties’ performance against their market, the submarket, and submarket-equivalent properties. In May 2014, we analyzed properties on RENTmaximizer from the end of 2012 through April 2014 and compared the aggregate performance of this “same store sales” population against the market.     Figure 1 above shows multiple results of our analysis. The chart labeled “Rental Rate” illustrates the performance of RENTmaximizer properties against their markets by period. At the end of April 2014, RENTmaximizer properties saw rental rates over 2% above the market, which also includes properties using other revenue management software. The markets grew at a combined rate of 3.9%, while RENTmaximizer properties outperformed the market and grew at nearly 6%. Even more significantly, the chart at the upper left shows that RENTmaximizer properties achieved a Net Rental Income (NRI) increase close to 6.3%. While rates improved across the board in the summer of 2013, RENTmaximizer properties achieved significant growth over market,...

The RENTmaximizer Pricing System...

In speaking with Yardi® clients about their revenue management challenges in recent years, we have been surprised to hear how many of them spend considerable time approving the prices coming from their systems. This led us to ask the question: If you have to approve prices from your pricing technology, do you really have a pricing system? Historical Pricing Systems Years ago, the multifamily industry’s pricing process was completely manual and frequently relied on “gut instinct” and trial and error. We did this largely because we did not have a lot a data and/or technological processes behind the scenes to help us gauge what the “true” price might be. In the late 1990s, the airline industry pioneered revenue management technology by carefully examining its large data volumes about demand (people who were looking to purchase airline seats to travel from point A to point B), inventory (the size of plane and number of seats on it), and market conditions (what other airlines were charging to travel from point A to point B). Airlines built sophisticated historical models of expected demand against anticipated inventory, matched those historical trends against current data, and began to balance seat prices against the demand, inventory, and market conditions. This technology eventually found its way to other high transaction volume industries such as hotels, rental cars, and others in the early 2000s. Between 2003 and 2004, the multifamily industry began adopting the airline industry’s revenue management technology. When you look at the sophistication of this technology in the airline industry today, you find it has changed and evolved dramatically. If you price an airline ticket today and then price it again within the hour, you will find significant pricing changes. Does this process rely on a person manually approving prices...

Yardi RENTmaximizer Comparables...

One feature included with the August 2014 release of Yardi RENTmaximizer™ is the ability to compare property performance against market, submarket, and submarket-equivalent properties. Pierce-Eislen and Yardi Matrix In the summer of 2013, Yardi® acquired Pierce-Eislen, the industry’s most comprehensive apartment market intelligence analysis system. As we continue integrating Pierce-Eislen’s capabilities into the Yardi product suite, Pierce-Eislen products and services are being rebranded as Yardi Matrix™. “Blind shopping” is one way Yardi Matrix collects data to determine property values. Inquiring as prospects, analysts currently call on 9.4+ million units in 77 markets three times per year. This includes all properties over 50 units in specific markets, and we are expanding this to include 100 markets, covering 97% of the United States population. We include this collection of actual rent information at the unit-type level as part of the standard Yardi RENTmaximizer reporting system. Performance Reports A property performance benchmark report incorporates data from Yardi RENTmaximizer and the Yardi Voyager® financial database. Charts include rental income, concessions and write-offs, and occupancy and reference rent. The rental rate shows actual Pierce-Eislen data surveyed for your property, the market, submarket, and submarket-equivalent properties during the same period.   The table shows percentage change by period and overall, as specified in your input parameters for the report. It also shows the property’s percentage change comparison to the market, submarket, and submarket-equivalent properties. This report helps you to track key revenue factors. You can use this information to modify Yardi RENTmaximizer parameters to conform to the strategy and goals driving the property’s operations. You can monitor your actual rental income, concessions, and write-offs against percentage occupancy, reference rent as determined by Yardi RENTmaximizer, and rent including amenities. Additionally, you can compare the property’s rent levels against the market, submarket,...

Yardi RENTmaximizer

Traditionally, apartments are priced by unit type; if applicable, pricing for amenities is then added or subtracted from this base amount. In order to incentivize customers to sign a lease, landlords have traditionally sweetened the deal by offering some form of concession. Yardi RENTmaximizer drives a change from that traditional pricing approach to a model that focuses on allowing the customers to pick their price, yet benefits the property by recovering a number of cost factors. The above is a sample of the Yardi RENTmaximizer pricing matrix, which is generated and analyzed at the floor plan level. The number of columns (lease start delay in weeks) and rows (length of lease in months) can be specified for each floor plan as part of the system’s configuration parameters. Customer Benefits Shifting from a pricing model based on price and concessions to a pricing matrix puts customers back in control of making the ultimate decision and determining how much they want to pay (as opposed to the leasing consultant telling them how much it is). Our clients find it more friendly and engaging to respond to a customer asking how much an apartment costs by engaging in conversation: “Well, it depends on when you would like to move in and how long you plan to stay.” This puts the pricing engagement discussion back on the customer and shifts the conversation to the customer’s needs instead of negotiating how much the leasing agent is willing to give away to get the business. Customers today are much more sophisticated and are used to a “menu” approach which allows them to customize their purchases. That approach can now be applied to renting an apartment. In addition to shifting the price decision back to the customer, this method also allows...

Yardi RENTmaximizer

The airline industry pioneered the use of computers to assist in pricing decisions in the late 1990s. That industry historically had tremendous volumes of data relating to the number of seats sold for each plane on various routes, i.e., the availability of the product being sold. Airlines also tracked detailed information on inquiries (leads) for different seats on planes, reflecting demand for the product. During this time travel agents began employing electronic systems to determine pricing and routing options for their clients. As the airline industry migrated to more and more Internet-based, consumer-driven booking of reservations, its ability to collect information about the demand side of pricing decisions increased significantly. Airlines were able to collect much more direct information about their customers’ needs and their flexibility on travel days and times. In the early 2000s, this technology began to migrate to other industries, such as hotels, rental cars, and other businesses with high transaction volumes and considerable data collected on the demand for their products or services. The Data Problem The technology eventually found its way into the multifamily industry in late 2003 to early 2004. However, there are two big differences in using the technology between the multifamily industry and airline, hotel, rental car, and similar businesses. One difference is the volume of transactions. The multifamily industry typically “sells” its product for terms of 12 months. The airline and rental car industries sell their product for use in terms of hours, and hotels in terms of days. The multifamily industry handles a very different transaction volume, so it has had less need to track demand. Once a product was sold (leased), leasing agents typically did not need to worry about it again for 10 months or longer. Therefore, the multifamily industry has not...