Apartment community manager cites automated rental pricing solution’s role in ‘phenomenal’ growth in effective rents, 50% drop in days vacant and sharp reductions in vacancy losses
SANTA BARBARA, CALIF., Dec. 14, 2011 – Apartment management company LumaCorp Inc. reported that Yardi RENTmaximizer™ has helped the company increase growth in its overall effective rents, reduce vacancy losses significantly and reduce bad debt with higher-quality residents.
“Even as the rental market inched toward recovery, we still felt some uncertainty about the future. We decided that automated determination of rental prices would produce better results than a more human-driven process,” said Ian Mattingly, a LumaCorp vice president. “We found RENTmaximizer was very cost effective compared to several other revenue management systems that we explored. Being able to price for maximum revenue has been a benefit from the first day.”
Yardi RENTmaximizer automates the rental pricing process. The solution, which operates as part of the Yardi Voyager™ platform, helps apartment owners and managers set prices directly from the trends of supply, demand and market conditions (i.e., market comparisons). Using pricing algorithms, this holistic trends-and-rules-based model helps multifamily property managers maximize rental income and occupancy by pricing each new lease and renewal for maximum revenue. By accessing property data directly from Yardi Voyager, Yardi RENTmaximizer provides a clear view of how pricing calculations are determined.
“We’ve been using RENTmaximizer at several of our properties for about a year, and it’s been even more impressive than we expected,” said Mattingly. “Within about four months, several properties saw a 1% average growth in effective rents, a phenomenal result after such a short time. In addition, some of our properties have reduced their days vacant by up to half, leading to reductions in vacancy loss of 5 to 8% in some cases.”
Mattingly added, “RENTmaximizer also allows us to reduce or even eliminate the amount of upfront concession we have to make to get people to rent with us. We now have an improved resident profile and we have less bad debt.”
“Yardi is pleased that RENTmaximizer has helped LumaCorp meet its business goals of increasing rents and improving its quality of residents. RENTmaximizer removes guesswork from their rental pricing process, and hopefully some stress along with it,” remarked Terri Dowen, senior vice president of sales for Yardi.
Click here to see Ian Mattingly talk about the advantages of RENTmaximizer.
About LumaCorp Inc.
LumaCorp, based in Dallas, manages approximately 5,000 units in more than 20 apartment communities in Texas. LumaCorp and its staff members have received numerous awards for outstanding performance in apartment property management, including the President’s Award from the Institute of Real Estate Management, IREM’s Certified Property Manager of the Year Award and the Apartment Assn. of Greater Dallas President’s Award. For more information, visit www.lumacorp.com.
Yardi Systems has been committed to the design, development and support of real estate investment management and property management software for nearly 30 years. With its Yardi Multifamily Suite™, Yardi Commercial Suite™ and Yardi Investment Suite™, the Yardi Voyager™ system is the most comprehensive single real estate management platform on the market today. Yardi serves clients around the world from offices in Asia, Australia, Europe and North America. More information about Yardi products and services is available at www.yardi.com.
Trade Media Contact: Joel Nelson 805.699-2040, ext. 1255