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Brent Williams' Apartment Blog

Thoughts, comments, and ideas about the overall multifamily industry, as well as a property-specific focus on resident retention and apartment marketing.

Amenity Pricing with Revenue Management

I attended a great session during the National Apartment Association Education Conference and Exposition called " Sustained Longevity: Reaping the Greatest Year-Over-Year Revenue Management ROI", and I picked up a few notes that I thought you all might enjoy on the topic of amenity pricing within revenue management. 

Bryan Pierce of Holland Residential suggested you identify everything that could be an amenity, and then rather guessing at what value it might have, instead look at the data on how it actually rents.  Does it rent quickly?  That could indicate that the amenity has value.  Conversely, if it rents more slowly, it could indicate the reverse is true.  So rather than trying to guess at the values for your amenities, or determining if they have any value from a price increase point of view, simply look at the data and it will identify opportunities for rent growth.

Kevin Huss of Harbor Group also shared that amenity pricing could change over the year.  For example, the pool view balcony may be a great selling point in the summer, but may suffer during the cold winter months.  Obviously, year long leases would ensure that the balcony has value in the summer, too, but the prospect may not always give it that type of value when it is snowing outside.

 

During the conference overall, there was much conversation about managing lease-end dates.  By looking at amenities in a seasonal point of view, this might also show a potential for pushing for lease end dates in the summer for those units with summer-centric amenities.

 

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