Pricing that Wins

By on Mar 6, 2018 in People

Noam Hameiri

Finding the “sweet spot” for pricing new and renewal leases may not be easy, but it is critical to optimize net rental income and move ahead of the competition. For property managers and executives hunting down data and compiling paper spreadsheets, finding that sweet spot can be difficult and time consuming. And with other important management tasks to attend to, doing it on a daily basis can be nearly impossible.

That’s why California-based DEELS Properties ditched the paper and adopted Yardi RENTmaximizer for adaptive, dynamic revenue management built into its Yardi Voyager property management platform. As a result, DEELS has transformed its pricing methodology to achieve significant rental income gains for its apartment communities in Los Angeles.

Part of the Yardi Multifamily Suite, RENTmaximizer utilizes proven rental pricing technology that leverages property history and market comparisons to generate rents that maximize rental income and occupancy. The process is transparent to the property manager so they can easily understand what factors are influencing pricing.

Saying Goodbye to the Paper Chase

Before RENTmaximizer, DEELS used paper spreadsheets, market surveys and traffic reports to set rents. And because it took so much time to compile the data, DEELS only adjusted rental prices once per month. “The process was cumbersome and not as adaptive as we wanted it to be. RENTmaximizer has helped increase our revenues for both new and renewal leases. No more wasted hours creating complicated spreadsheets,” said Noam Hameiri, senior vice president of operations for DEELS.

RENTmaximizer leverages DEELS’ property data in Voyager to drive revenue with clear, comprehensive metrics focusing on rental income, concessions, occupancy and rental rates — not just pricing. The system’s open calculation method, along with integrated market data and accurate analytics, helps DEELS make smart and effective pricing decisions across its portfolio.

Increasing NRI — and Satisfaction

Having a mathematical process that determines and adjusts prices based on real data and ever-changing market conditions was critical for DEELS. According to Hameiri, DEELS now adjusts prices daily based on a set of criteria and formulas that streamline the process. The result is up-to-date prices that take into consideration supply and demand broken down by traffic, competitor rates, vacancies and notices.

Thanks to RENTmaximizer, applicants can review available units online with different price options based on terms and move-in date. Hameiri commented, “We find applicants accept our prices even more now. Same for renewals. Current residents can see our prices online, and we can offer them different prices for different terms, which has improved our renewal rates.”

DEELS also uses Yardi Matrix for automated surveys that are critical to its price-probing process. Staff members see new pricing tables reflected on the company website and on the RENTmaximizer dashboard every morning. Hameiri says it’s so much easier to use price tables and a calculator tool to enter different move-in dates and terms to see the available prices.

Hameiri commented, “Picking my favorite thing about RENTmaximizer is hard. In my opinion, the price transparency for our staff and clients, the speed and adaptability of the system, the extensive reporting and the weekly phone call with our dedicated RENTmaximizer expert are some of the best parts of the system.”

For its properties currently under development, Hameiri said that DEELS is enthusiastic about using RENTmaximizer for lease-ups and is confident it will get the best possible rates. And for companies of any size, Hameiri enthusiastically recommends RENTmaximizer for effective revenue management that gets results. “The return on investment has been incredible,” Hameiri added.

Learn more about the Yardi Multifamily Suite including RENTmaximizer for a full-business real estate solution with mobility. Read client success stories on RENTmaximizer from DEELS and other companies.