The multifamily industry is at a crossroads. As legal, technological, and market pressures converge, the future of revenue management demands new ways of thinking. This was the focus of a recent episode of Multifamily Matters, where Paul Marks hosted Donald Davidoff, REBA CEO and Brad Schell, REBA Head of Pricing & Services. Together, they unpacked how the industry’s revenue strategies have evolved and what lies ahead for operators navigating this changing landscape.

The Long Journey of Revenue Management

Revenue management in multifamily has come a long way since its inception in 1999. Davidoff, who played a key role in developing one of the first systems, reflected on how these early tools revolutionized pricing strategies by introducing automated solutions. Yet, despite decades of use, many legacy systems remain rooted in the past, built for a simpler time when multifamily operations were far less complex.

Today, these older systems struggle to keep up with industry demands. As Davidoff quipped, a user from 2006 could wake up today and navigate these platforms with ease because little has changed. This lack of evolution highlights a significant opportunity to rethink and reimagine what revenue management should look like in 2025 and beyond.

Navigating Legal and Legislative Shifts

The discussion naturally turned to the legal and legislative challenges currently shaking the foundations of multifamily pricing. While the DOJ’s criminal investigation into potential price-setting practices was recently dropped, other civil and class-action lawsuits are still in progress. On the legislative side, cities like San Francisco and Philadelphia have implemented laws restricting algorithmic pricing that uses non-public competitive data.

While these legal changes may sound daunting, Davidoff was quick to clarify that much of the legislation is narrower in scope than the provocative headlines suggest. For multifamily operators, the takeaway is clear: staying informed and compliant is critical, but these shifts shouldn’t lead to fear-based decision-making. Instead, operators should see this as an opportunity to refine their strategies and modernize their tools.

Why Competitive Data Is No Longer Enough

A recurring theme in the episode was the industry’s over-reliance on competitive data. Schell explained the many pitfalls of this approach, from inaccuracies in pricing pulled from various sources to a lack of timeliness and context. “For years, the industry has over-indexed on comp data,” Davidoff noted, “but it’s time to let go of that crutch.” Modern pricing systems should instead leverage first-party data, which is both more accurate and actionable. By focusing on metrics like leasing velocity and lead volume, operators can adjust pricing in real-time to better align with actual market conditions.

Opportunities to Reimagine Revenue Management

While the challenges are evident, so are the opportunities. Davidoff and Schell outlined several areas where the industry can—and should—reimagine how revenue management operates:

• Transparency: Modern systems must eliminate the “black box” perception that plagues legacy platforms. Community managers, regional leaders, and leasing associates need tools that clearly explain why pricing decisions are made. Greater transparency not only builds trust but also reduces the workload for revenue managers tasked with justifying the system.
• Flexibility: Legacy systems often falter when handling special cases like lease-ups, renovations, or rent-controlled units. Contemporary solutions, like REBA Rent, are designed to address these nuances, ensuring no unit type or situation is left behind.
• Efficiency: Outdated workflows are a significant drain on time and resources. New systems can streamline processes, reducing the total cost of ownership and freeing up revenue managers to focus on strategic initiatives.

The Results Speak for Themselves

For those wondering if modernizing revenue management is worth it, the data tells a compelling story. Schell shared the results of a recent pilot program comparing REBA Rent to a legacy system. Properties using REBA Rent saw a 2.4% increase in occupancy, higher revenue per unit, and reduced availability rates. These changes translated into millions of dollars in additional revenue for the portfolio—a testament to the tangible value of rethinking revenue management. Davidoff summed it up best: “Even small changes, like a $10 increase per unit, can add up to millions in revenue—and tens of millions in enterprise value. That’s the power of modern systems.”

Looking Ahead

As the conversation wrapped up, the message was clear: multifamily revenue management is overdue for reinvention. With 25 years of lessons to draw from, the next generation of tools has the potential to not only improve performance but also empower operators to meet their unique goals. Whether it’s through more transparent workflows, greater flexibility, or a focus on predictive analytics, the future of revenue management is bright for those willing to embrace change.