Why Multifamily Operators Should Care About Hold Times
by Donald Davidoff | Oct 20, 2016 12:00:00 AM
Over the past 10 years, multifamily housing (MFH) has seen rapid adoption of automated pricing and revenue management (PRM) systems. Based on interpretations of public statements from the relevant vendors, I estimate at least 5 million units are now priced using some form of automated PRM system. Yet there are still many business practices that affect optimizing revenue for all MFH operators, whether on an automated system or not. One of the most critical is the “hold time,” or the amount of “built in” vacancy operators are willing to accept when taking a lease.