The Demand Solutions Blog

The 5 Top Attributes for Successful Revenue Managers

Posted by Donald Davidoff on Aug 6, 2019 8:18:00 AM

Pricing and Revenue Management (PRM) has been in mass-adoption in multifamily for more than a decade.  During that time, an industry talent pool has developed around the core technologies that companies use to manage pricing.  The systems are sophisticated, enabling better decision-making and returns at companies that have been successful in incorporating them into their business processes.

Yet our experience tells us that some companies integrate PRM systems and processes into their businesses more effectively than others. While companies may use the same PRM software, many don't get the same returns as other companies that use it. Much depends on the human skills that companies deploy to ensure that the system is configured and operating in the way that it should be.

Given our depth of talent and experience in PRM, clients frequently ask us what they should look for in a good pricing and revenue manager.  Our industry often places a heavy emphasis on multifamily experience when recruiting new associates, often for reasons.  However, there are compelling reasons to apply different rules to PRM recruits (the discipline of PRM came from different industries, like hospitality and airlines, after all). While awareness of multifamily operations can undoubtedly be helpful, it honestly is not the most important qualification for a successful revenue manager.

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Topics: multi-family housing, pricing and revenue management, business intelligence, Multifamily Trends

7 Reasons Why There Ain’t Nothing Like a Downturn

Posted by Donald Davidoff on Jul 30, 2019 12:07:11 PM

A few weeks ago, I wrote about some of the core skills of Pricing and Revenue Management (PRM) and how those skills have diminished in the industry talent pool during the last decade. As I explained - using Warren Buffett’s playful metaphor about tides and skinny-dipping - it’s relatively easy to deliver growth in a generally growing market. Skillful, difference-making PRM professionals are adept in delivering upside even in less favorable market conditions.

Nobody likes downturns, but having been in multifamily PRM for more than 20 years, I can attest to the stress-test that they impose on PRM capabilities and practitioners. If your pricing managers haven’t been pricing for at least 10 years, then they have never dealt with a softening market. That’s true whether they’re internal employees, associates of your third-party fee manager or serve on the staff on a pricing services team that is offered by your pricing software vendor.

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Topics: multi-family housing, Multifamily Trends, Future

Are We Looking at Property Differentiation the Wrong Way?

Posted by Trachelle Spencer on Jul 2, 2019 9:00:00 AM

I recently read - with interest - the coverage of NMHC's recent spring Board of Directors meeting in Chicago. What really caught my eye was a talk entitled "Seven Ways to Succeed in the Future of Real Estate," given by Dror Poleg, the founder of Rethinking.RE. The presentation discussed how technology is redefining real estate, shifting value from the physical space to the services provided.

In this environment, the logic goes, the customer, rather than the property, increasingly becomes the asset of your business. Space becomes a service and competitors become your partners. From this radical view of an increasingly inverted world, the idea of the customer becoming the asset resonated with me, based on my own experience in the multifamily industry.

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Topics: property management, apartments, apartment operations, multi-family housing

Floor Plans: Why Too Much Choice Can Be Worse Than Too Little

Posted by Trachelle Spencer on May 1, 2019 9:45:09 AM

A few weeks ago we discussed the experience of leasing up big projects and the importance of setting up unit type groupings in the pricing & revenue management (PRM) system. In that article I noted that too many operators neglect unit type setup, creating categories that make no more sense to a prospect than a shoe store that grouped all of its shoes by size alone.

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Topics: Revenue Management, multi-family housing

What Would You Do? Tips to Reduce Staff Turnover

Posted by Donald Davidoff on Nov 27, 2018 10:40:00 AM

In our new series, we’ll be tackling common and frequently asked questions from operators and operator executives in the multi-family housing industry.  

Ask a multifamily operations-focused executive what their biggest concerns are, and it likely won’t take long for the topic of staffing—and by extension, turnover—to  come up. High turnover rates have a number of negative implications for operators, including hiring costs, lost productivity, lower sales results and more. 

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Topics: multi-family housing, leasing associates, Multifamily Trends

Allowing Short-term Rentals in Multi-family Buildings: The Benefits and the Risks Based on Real-world Data.

Posted by Donald Davidoff on Sep 27, 2018 9:16:13 AM

Just yesterday, Pillow Homes released a white paper I authored, “Allowing Short-term Rentals in Multi-family Buildings: The Benefits and the Risks Based on Real-world Data.” Though in full disclosure I was compensated for my work, I am particularly proud of this piece of analysis as it’s the first time I’m aware of any comprehensive case study of what really happens when buildings actively allow residents to sublet their homes out for short-term rentals (STRs).

The paper was made possible by data collected on the Pillow Homes platform and the courtesy of two management teams of Denver multi-family communities allowing me to interview them to bring their experiences into the analysis along with the “hard” numbers. The study was made all the more interesting as one of the communities was a stabilized property and the other is going through lease-up, thus giving different perspectives from different operating imperatives.

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Topics: multi-family housing, Leasing Performance, Short-Term Rentals

5 Tips for Effective Multifamily Email Marketing

Posted by Doug Davidoff on Mar 31, 2017 5:23:32 PM

The possibilities with email marketing have come a long way.  Greater functionality and the plethora of automated email marketing platforms represent an apartment marketer’s fantasyland.  However, just because more is possible, doesn’t mean multifamily operators are using email marketing more effectively.

Research we conducted a couple years ago (that we are in the process of currently updating) shows that very few operators are effectively using emails as a marketing tactic. In fact, surprisingly few use it at all, so “Tip #0” is that you should have an organized email re-marketing campaign.

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Topics: multi-family housing, apartment marketing, marketing programs

Is Your Bonus System Hurting You?

Posted by Donald Davidoff on Sep 26, 2013 5:26:00 PM

Funny thing about bonus systems —you often get exactly what you incent. Now that doesn’t mean you get what you want. It means you get what you incent. So here are a couple of pet peeves of mine that I’'ve seen w.r.t. bonuses in multi-family that at best just waste money but at worst actually hurt our pricing and revenue management efforts:

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Topics: Revenue Management, apartment, property management, apartment operations, apartment pricing, multi-family housing, pricing and revenue management, financial performance

A Gathering of Pricers--Will I See you at ARM?

Posted by Donald Davidoff on Sep 3, 2013 10:43:00 AM

It’s been a while since I last blogged. Lots going on—crazy busy with clients, my younger daughter just started high school and we just sent my older daughter off to Princeton for her freshman year. Both of those milestones got me thinking about how I got to where I am.

Hard work, smarts and a good bit of luck certainly had a lot to do with it. But I think the most important thing for anyone in a “cognitive skill” career path is to be constantly learning. Learning from experience,  but more importantly learning from others—from “experts” we may not know and from colleagues (and competitors) who we do know. Which got me thinking about how important a role conferences have played in my career. I’ve met so many people who become not just business colleagues but also friends; and I’ve learned from many speakers I never would have otherwise encountered—people with ideas that changed how I viewed the world, my job and myself.

So if you’re serious about pricing in the multi-family industry, you simply have to go to the Apartment Revenue Management Conference. There are lots of pricing conferences and lots of multi-family housing conferences, but ARM is the only conference dedicated solely to practicing our art in our vertical. I’ll be there again and hope to see you. For those of you who might care, here’s what I’m expecting to do there:

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Topics: Revenue Management, apartment, property management, apartment pricing, multi-family housing, pricing and revenue management

ApartmentRatings.com: Critical for Marketing?

Posted by Donald Davidoff on Jun 17, 2013 10:45:00 PM

There are many different opinions about the value of social media in multi-family housing. Readers of this blog should be pretty aware of mine. But the one thing that everyone seems to agree on is that ratings sites are important. There’s a lot of debate about what to do with ratings sites, but everyone seems to agree there’s some “there” there.

So I thought it would be a good idea to get a sense of exactly how important ratings sites are. The first step I took was to dig up some research I had done for a client back in February. In it I wanted to identify whether there was a clear “category killer” or whether multiple ratings sites were important. In an admittedly un-scientific way, I just looked at 10 communities in the Washington, DC market.

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Topics: social media, apartment operations, multi-family housing, apartment marketing, marketing programs, apartment ratings