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...

The Yardi RENTmaximizer Advantage...

Yardi RENTmaximizer™ is a flexible, comprehensive revenue management solution that delivers better results by enabling you to price every new and renewal lease with complete visibility and control. Our trend-based methodology and dynamic business rules lead you to smarter pricing, so you can maximize revenue without sacrificing occupancy. The system evaluates trends nightly based on four major aspects of your operations: availability, traffic, leases, and competitive rents. These are crucial for understanding the “health” of every property with respect to its pricing power and determining whether pricing should go up, down, or remain the same. These four components have trends of their own, and their collective direction (positive, negative, or flat) will indicate the direction for your pricing. The system determines the magnitude of the price movement and evaluates trends and rules at the unit-type level. Why RENTmaximizer? Yardi RENTmaximizer has seen exponential adoption growth since its introduction in 2011 and continues to prove itself in the market. The system’s intuitive approach and transparent reporting, along with its dedicated service team of revenue management experts, make it easy for property management teams to understand and learn to master daily pricing. Using operational data directly from Yardi Voyager® to automate lease price movement, Yardi RENTmaximizer examines short-term trends in traffic, availability, leases, and market dynamics to identify a property’s health. The business rule component ensures that price movement matches the property’s overall operating objectives and strategy. Move-in dates, lease terms, amenities, and other configurable factors enable leasing consultants to offer a number of options to customers, increasing customer satisfaction and improving retention. How is RENTmaximizer Different from Other Systems? Yardi RENTmaximizer was built on common multifamily concepts. It is designed to be: Intuitive. The pricing adjustments make sense to your organization; there are no seemingly...

The RENTmaximizer Service Difference...

When you introduce new technology into your organization, the support you receive from the provider is critical to its adoption and ultimate success. In fact, support can be the determining factor in realizing your anticipated value and return on investment. Provider support is especially important when applying technology to a business component as critical as pricing. Think back to other technologies you have implemented: Did the technology fail because it was technically flawed or because of poor support from the provider? Your answer may be insightful. Support Team Alongside developing Yardi RENTmaximizer™ from a technology perspective, we also developed a plan to ensure that the technology was supported by people with the expertise to ensure the success of the implementation as well as ongoing use of the product. The Yardi RENTmaximizer support team is composed of apartment industry professionals with an average of over eight years’ industry experience. They have personally managed apartments as community managers or regional managers. Their job is to make sure that Yardi RENTmaximizer delivers according to your strategic operational objectives and asset goals. These revenue managers handle the pricing technology so you can focus on managing your business. Implementation The first step of your implementation is to connect your Yardi Voyager® database to Yardi RENTmaximizer. We assign a customer service representative as a dedicated resource to your company and properties to facilitate this. This person will get to know all of your properties and your strategies for each, ensuring that we deliver pricing consistent with your objectives. They will have the insight to suggest operational modifications to consider during more challenging times. Once Yardi RENTmaximizer is connected to the property database, we transfer the critical data values the system needs. We then load a set of best-practice templates for...

Yardi RENTmaximizer Property Ratings...

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. The following is an example of a performance benchmark detail report for a single property from January 2013 to June 2014:       Selecting Equivalent Properties Pierce-Eislen data enables Yardi Matrix to compare equivalent properties and/or locations. In the heading of the performance benchmark detail report, we provide the improvement rating and location rating for your property. The report allows you to select properties with similar property and location ratings via drop-down menus. You can select properties that are highly comparable to your property or properties with ratings are above and/or below those of your property. The Pierce-Eislen improvement and location rating system is a patented methodology that assists in evaluating properties consistently with respect to their current improvement status and location. Below we outline the improvement and location ratings. Improvement Rating All apartment properties incorporate certain recognizable, rent-sensitive characteristics. Some are subject to functional obsolescence, others to changes in...