Occupancy and income grow in 10 months with automated solution
SANTA BARBARA, CALIF., Jan. 31, 2012 — Residential property owner and manager Summit Management Services Inc. reported that occupancy and rental income at several of its properties have significantly increased since the company adopted Yardi RENTmaximizer™ in January 2011.
Summit Management Services, a Yardi Voyager™ client, set a goal for 2011 to increase rental rates and revenue without adversely impacting occupancy. “We had a great relationship with Yardi, and that familiarity gave us confidence that RENTmaximizer would give us the results and competitive advantage we sought,” said Ryan Kissell, controller for Summit Management Services.
That confidence has been rewarded with improved business performance. For the third quarter of 2011, Summit Management Services saw its revenue increase 4.63% percent and its occupancy grow 0.13% over the same period in 2010. Overall occupancy at Summit Management Services’ properties, which was 90% when Yardi RENTmaximizer was adopted, stood at nearly 93% in September 2011.
“RENTmaximizer’s automated pricing matrix has allowed us to eliminate concessions. It also gives us the flexibility to base prices on move-in date and lease term and other variables. For example, if a prospect can’t afford the full rent for a unit that he wants to move into in a month, RENTmaximizer tells us how much less we should charge in exchange for moving in sooner. This produces revenue, and profit, from an apartment that would otherwise sit vacant for days or weeks,” Kissell said.
Yardi RENTmaximizer, 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 and renewal lease for maximum revenue. The Yardi RENTmaximizer pricing model is completely configurable at the property and unit-type levels, allowing users to vary their models within a property to meet their objectives. A feedback loop between Yardi RENTmaximizer and property data in Yardi Voyager reports results of the chosen pricing and makes the system “smarter” as prices are renewed on an ongoing basis.
“Yardi is pleased that RENTmaximizer’s advanced algorithms are giving Summit Management Services the rental pricing data they need to meet their business goals,” said Terri Dowen, senior vice president of sales for Yardi.
About Summit Management Services Inc.
Summit Management Services Inc., based in Akron, Ohio, manages and owns more than 3,200 residential units in Ohio, North Carolina and Colorado. Its portfolio includes affordable housing, market-rate housing and student housing at Kent State University in Ohio and Colorado State University.
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