Multi-family Housing
Focus on the resident. We’ll make sure you have the right price based on the most effective AI algorithms.
Proactively Price to Build Shareholder Value
Apartment or multi-family housing operators are pressured on many fronts to increase both occupancy and rent. Many operators are expected to grow rates year over year. Ever changing competitive supply and rate offerings make it even more difficult to decide on the right price that sells and is profitable.
Apartment operators need to price their units strategically to maximize their longer-term revenue growth. They must be able to forecast demand as a function of price. This is difficult due to low-volume demand situations, and many existing tools lack the sophistication to handle this appropriately. In addition, apartment pricing should manage lease durations properly. For example, if a lease expires in a high move-in season, this provides pricing leverage for new move-ins and renewal pricing. In addition, an effective pricing strategy requires that the price of a given unit reflects its amenities (such as view, kitchen amenities) since customers perform value tradeoffs when choosing among units. Competitive prices should also be used as input to setting optimum rents after estimating competitive impact to customer demand. In some situations, ignoring competitive prices might be the right answer, yet many existing systems blindly follow or use rule-based weighting schemes for competitive price response. This strategy is risky, since it often entails delegating the price-setting responsibility to competitors.
Prorize Solution
The Prorize team pioneered the science of revenue management solutions for the multi-family housing industry during the late 1990s with Archstone-Smith. Since then, data quality and pricing science technology have changed dramatically. We gained significant experience in rental pricing and now have an unmatched technology infrastructure to take apartment pricing to the next level. Our AI Pricing Platform™ was awarded the world’s top prize in advanced analytics partly because of its ability to forecast demand in low-volume business environments, such as apartments. We can scientifically incorporate competitive prices into pricing decisions to the extent that they are relevant, and competitive price impacts are continuously measured and automatically adjusted. Renewal prices use advanced AI-powered pricing techniques and incorporate many important factors, including move-out sensitivity, original and current months, availability, market rents and occupied rents.