RealPage, a leading global provider of software and data analytics to the real estate industry, reports that its AI Revenue Management systems delivered significantly increased revenue yield for clients despite extreme market volatility during the COVID-19 crisis. AI Revenue Management optimizes demand, credit, lease terms and leasing agent behavior by floor plan type. Its proven track record positions the platform as an indispensable tool for current and future periods of market uncertainty.
Using its benchmarking database, RealPage compared units that are revenue managed against the broader peer group in the submarket that they compete in for March and April. The engine produced 60 bps of incremental price yield on new leases and 80 bps of incremental price yield on renewal leases, as well as 100 bps of increased renewal percentage compared to submarket peers not using revenue management.
Says Keith Dunkin, RealPage SVP, Asset Optimization, “RealPage AI Revenue Management works best when volatility is high. And uncertainty will be the new normal as we emerge from this crisis, so you’ll need to be able to position your assets six months, 12 months out—not just today, 30, 60 or 90 days. AI Revenue Management ensures that you properly set rents so you can weather any storms and even come out ahead. We fortify that with our performance analytics benchmarking, which gives you real time visibility into the market. And our price advisory group provides high-touch service, so you execute with precision.”
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James Flick, head of Revenue Management at Camden Property Trust, offers his perspective: “As a longtime leader in leveraging technology to drive performance, we know the importance of getting it right…all the time. We rely heavily on RealPage’s Revenue Management system, analytics and team of advisors to identify opportunities to preserve NOI and drive revenue.”
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