ATLANTA, GA - The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, today announces Calgary, Alberta-based Avenue Living is in the process of deploying LRO revenue management across the firm’s Western Canadian apartment portfolio. Recognized as one of Canada’s fastest growing owner/operators of multifamily living communities, Avenue Living selected LRO for its best-in-class reporting and analytics, superior optimization of unit pricing and lease expiration management, and business intelligence sophistication. LRO will assist in Avenue Living’s aggressive portfolio growth strategy.
“The level of reporting that LRO provides is amazing, and we are really looking forward to leveraging the analytics that come with the LRO solution,” said Marc Gravel, Vice President of Finance for Avenue Living. “With our portfolio comprised of smaller, walk-up communities, our pricing strategy up to now has been a very lengthy and complicated practice. LRO will provide Avenue Living with the ability to pinpoint pricing and incentives by building, or even by unit type, to get the maximum bang for our buck by not applying needless concessions to achieve our targeted vacancy, rent and revenue goals.”
An aggressive growth strategy has virtually doubled Avenue Living’s portfolio size every 12 to 18 months for the past three years, and the firm is now in the process of deploying LRO across more than 5,000 units. In addition to rent and revenue lift that Gravel says are a given with LRO’s optimized pricing algorithms, the firm plans to rely on LRO revenue management to standardize pricing strategies and provide faster stabilization to the distressed assets targeted by Avenue Living’s acquisition team.
“We’re currently able to reposition assets back to stabilized market rents in nine to 12 months, and one of the things we are hoping for with LRO is that it may help us stabilize even faster by providing the day-to-day pulse check on our rents without our team members having to constantly read and react as the system is doing that for us,” said Gravel. “When you've been operating an asset for five years, you have a pretty good handle on rent. When you have a brand new asset in a brand new market, there's some learning that can hopefully be resolved with the genius statistics and analytics in the LRO tool.”
The use of revenue management is getting increased attention from Canadian apartment owners who see demonstrated success from their U.S. peers, and Avenue Living is Canada’s first adopter of an optimized revenue management solution and also Rainmaker LRO’s first global multifamily customer.
“We’re proud to enter the Canadian market with a partner like Avenue Living, which is committed to improvement and success through optimized revenue management,” said Andrew Rains, president of Rainmaker LRO. “Early adopters in any market often see beyond the demonstrated rent and revenue growth using LRO and, like Avenue Living, are progressive in adopting best-in-class technologies to realize strategic asset repositioning and unit count growth targets. We are excited to join forces with Avenue Living to help reach their short-term and long-term revenue and portfolio success goals and we believe they will see even greater achievements in the years to come.”