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RealPage Exec: Revenue Management Software Helps

Software may help multifamily owners identify market dynamics and react to conditions, especially in a down market.

By Noreen Seebacher | Updated on April 10, 2009

Janine Steiner Jovanovic has been promoting technology to real estate companies for 15 years. As president of M/PF YieldStar, she focuses on revenue management software for the multifamily industry. M/PF YieldStar Price Optimizer, a product of Carrollton, TX-based RealPage Inc., is an on-demand tool designed to optimize rental revenue for conventional, lease-up and student living. The software uses market response and forecasting models to make daily rent recommendations and provide detailed and summary decision support reports. In an interview last year, Steiner Jovanovic said the product empowers multifamily operators to “aggressively price units.” But since then, the economy has deteriorated. In fact, Houston was the only major metro area nationwide that registered substantial demand for apartments during 2008, RealPage reports. So GlobeSt.com contacted Steiner Jovanovic again–this time, to find out what benefits, if any, revenue management software can offer in a down market. Here’s the first of a two-part interview:

GlobeSt.com: How can revenue management software, like Price Optimizer revenue management, help multifamily operators when the real estate market is in transition?

Jovanovic: The first benefit is the ability to make frequent, proactive price adjustments at a unit type level. By evaluating the supply and demand situation for each unit type in a given property on a daily basis, Price Optimizer is able to quickly identify situations where too much inventory is exposed and make measured downward price modifications to prevent occupancy deterioration, which is very costly. Conversely, certainly unit types, even in a down market, will experience sufficient demand to increase rates.

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