Recently we have written extensively on the skills that are needed to run an effective pricing and revenue management (PRM) organization. We normally take the perspective of an organization looking to bolster its PRM capabilities - something that we feel companies should focus on after a decade of growth in multifamily. But there is one important stakeholder group whose perspective we have not addressed as directly as the others: asset management.
Through our industry connections and our growing roster of institutional ownership clients, we have come to pay more attention to the asset management perspective over the last year or so. With regard to revenue management, asset managers have the often unenviable task of overseeing the revenue management decision-making of third parties, usually either management companies or software vendors.
In either case, an asset manager has to understand enough about market conditions and strategy to be able to evaluate a property’s pricing tactics. They must resist getting into the weeds, of which there are many in the case of PRM, but still provide oversight. With this problem in mind, we recommend asking ten questions that will help you understand where your PRM opportunities might be.Read More