Affordable and workplace housing owner and operator BSR Trust LLC increased revenues in the year after the company rolled out Yardi RENTmaximizer™ at 40 of its properties.
“In mid-2010, we noticed that all of the publicly traded real estate investment trusts that we compete with used a revenue management solution to set rental prices,” said Jennifer van Arcken, director of information systems for BSR Trust. “We were quite familiar with Yardi as a longtime Yardi Voyager™ client. We like Voyager, the client service and the additional products, including Yardi Portal™ and Yardi Investment Management™, so it made sense for us to adopt RENTmaximizer as our rental pricing solution. We began implementing RENTmaximizer in December 2010.”
Revenue produced by the 40 properties’ 7,000 units increased by 3.34% in the year after Yardi RENTmaximizer was implemented, surpassing the target of 3%.
“RENTmaximizer has been well received by our property managers. All they have to do is enter some market study data every month, and RENTmaximizer does the rest. RENTmaximizer updates prices every night, and the managers have them in the morning,” van Arcken said.
Yardi RENTmaximizer also improves BSR Trust’s business performance by eliminating concessions, reducing bad debt and increasing occupancy. “By giving us the market rate for every unit, RENTmaximizer eliminates guesswork by our property managers,” van Arcken said. “It also reduces incentive for residents to sign a lease just to get a move-in special, then leave soon after. Furthermore, we’re signing more leases for 15 months rather than the usual 12 months, meaning that high-quality residents are here for the long haul.”
Yardi RENTmaximizer increases revenue by automating the process of calculating best rents. The solution, which is built in as part of the Yardi Voyager platform, helps apartment owners and managers set prices directly from the trends of supply, demand and market conditions (i.e., market comparisons). Using pricing algorithms, this holistic trends-and-rules-based model helps multifamily property managers maximize rental income and occupancy by pricing each new lease and renewal for maximum revenue. By accessing property data directly from Yardi Voyager, Yardi RENTmaximizer provides a clear view of how pricing calculations are determined.
“BSR Trust is one of many examples of leading apartment rental owners increasing revenue with RENTmaximizer,” said Terri Dowen, senior vice president of sales for Yardi. “BSR Trust gains additional efficiencies and benefits unique to RENTmaximizer because it is built in as part of Voyager.”
About BSR Trust, LLC
BSR Trust, LLC (bsrtrust.com) owns and operates 18,689 units, which are a part of 111 multifamily communities in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. Headquartered in Montgomery, Ala. and Little Rock, Ark., BSR Trust has nearly 600 employees across 10 states. The primary mission of BSR Trust is to provide an exceptional living experience for residents at a community they are proud to call home.
Yardi (yardi.com) has been committed to the design, development and support of real estate investment management and property management software for 30 years. With the Yardi Voyager™ and Yardi Orion™ for SharePoint® platforms and the Yardi Multifamily Suite™, Yardi Commercial Suite™, and Yardi Investment Suite™, Yardi offers a full business real estate management platform that includes operations, accounting, and ancillary processes and services with portfolio-wide business intelligence. Yardi serves clients around the world from offices in North America, Asia, Australia, Europe and the Middle East.