AUSTIN, TX - Student housing operators have traditionally focused on achieving occupancy through rental rate tiers tied to dates on a calendar -- holiday break, before spring break and after finals – but while this calendar approach often led to the desired occupancy, it usually left money on the table.
A new white paper released by Campus Advantage offers an alternative way to manage – and maximize – revenue generated by student housing properties using 10 tips it has identified over the past five years. The company assesses rental rates on every floor plan of every property in a portfolio on a weekly basis, eliminating the outdated preset rental rate tiers method. It looks at demand for each floor plan, historical data, closing ratios, and traffic to decide where rates should be set for the following week.
Campus Advantage’s Madison Meier, director of business development and transitions, offers a detailed explanation of these tips in the white paper, titled “10 Tips to Revenue Management,” which can be downloaded at http://bit.ly/1UaOUob.
Tips include the following:
- Focus on revenue, not on occupancy.
- Shift your focus
- Get outside your comfort zone.
- Track, report, and discuss
- Keep an eye on your competitors’ sales.
- Think outside the box.
- Look ahead.
- Use data to make decisions.
- Utilize price quotes.
- Partner with a property management company.
The white paper suggests that throwing out past operating practices and thinking about revenue instead of occupancy can be hard, but its tips can help teams put in place a maximized revenue leasing plan.
“This calendar approach often led to the desired occupancy, but usually left money on the table for owners because the primary focus was meeting a physical occupancy goal instead of achieving an optional rent for every unit,” according to the white paper. “Campus Advantage now has a fresh focus on achieving budgeted revenue instead of only focusing on an occupancy number.”
About Campus Advantage
Campus Advantage is an Austin-based real estate firm that offers student housing management, development, acquisition, and consulting services. The company has been creating successful communities since its founding in 2003. Its proven expertise and time-tested approach creates better student living experiences, which in turn creates financial success. For additional information, please visit http://www.campusadv.com