Source: MultifamilyBiz.com / #Multifamily #Technology
DALLAS, TX - Revenue management isn’t just about setting premium rents anymore. As apartment operators have become used to algorithms that assist in pricing, so too have they begun to discover new ways for leveraging data across the multifamily enterprise. According to Joshua Tree Conference Group president Steve Lefkovits, the widespread adoption of revenue management has helped to create a “culture of analytics” at many progressive multifamily firms, where realizing fresh areas of operational efficiencies has become the name of the game. From crunching data to determine the best ways to allocate capital, staff up communities, and turn vacant units, here are the top three emerging profit centers where business intelligence and predictive analytics are making a huge dent in apartment operation inefficiencies:
Spend Analysis. Whether implementing a simple benchmarking effort or engaging in sophisticated, data-driven analysis, multifamily companies are gaining profitable insight into how dollars are spent across properties over specific periods of time. The profit opportunity: identify wide variations across portfolios for controlling and standardizing spend to increase net yield.
Staffing Analysis. Whether it’s in the leasing office or in the maintenance garage, the multifamily industry traditionally has a funny way of being fully staffed up during business hours: precisely when residents aren’t around. Since both job functions clearly have an impact on the customer experience, predictive analytics, particularly via analysis of leasing office calls or online maintenance requests are shedding new light on where, when and how to staff apartment communities. The profit opportunity: a lower investment in staffing with higher levels of ROI and customer satisfaction.
Turnover Analysis. Call it three days, four days, six days or a week -- determining new operational efficiencies during unit turns remains a business intelligence hotspot. Incorporating propensity to renew data with in depth analysis of turn cost and time can provide key insight into the optimal profit opportunities associated with turnover in a property’s lease expiration matrix. The profit opportunity: learn when, how, and for how much to let a unit be renewed, sit idle, or get turned for a new renter.
Interested in learning more about business intelligence and emerging profit center in multifamily operations? Don’t miss the Apartment Revenue Management Conference Oct. 15-17 at the Omni Hotel Dallas and produced by the NAA and Joshua Tree Conference Group. Visit the ARM Conference website for full registration and agenda information.