Vacancy loss is the bane of all multifamily housing operators. Once an apartment is empty, that revenue opportunity is lost forever. So it’s not surprising that all sorts of methods (and madness) have evolved to deal with units that have been vacant for a long while—the so-called “long-standing vacant” (LSV).
Over the past 10 years, multifamily housing (MFH) has seen rapid adoption of automated pricing and revenue management (PRM) systems. By now, I’m guessing more than half of professionally managed multifamily units are 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. Among the most critical of those is dealing with LSVs.Read More