Balancing Act
Increasing Occupancy while Maintaining Rents
Source: multihousingnews.com
These days property managers are in a tight situation where the quality of applicants and traffic are down, and�they need to find ways to increase occupancy while maintaining rents.
Richard Schreiber, president of SureDeposit, states, "What's important in this market is to determine what your strategy is to best maintain your occupancy and create a disciplined approach to mitigate the risk on what will inevitably be a higher percentage of riskier applicants," Schreiber adds.
Keith Dunkin, director of business management at Yieldstar, notes that�a revenue management system can�help managers determine whether concessions are truly necessary and provide prospective renters with more leasing flexibility by offering pricing alternatives based on lease terms and move-in days.
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It is a balancing act to attract and retain tenants at scheduled rent while reducing vacancy. Unfortunately for many they are behind the eight ball. The time to plan for a down market is when the market is good. Spend the money improving the property in good times and you'll be more competitive in the soft market. Lesson learned!
This article from MultiHousingnews.com talks about the delicate balance between the owner's goals and current state of the economy. Many communities are experiencing higher vacancy totals, requiring managers to judge the market and make changes necessary to retain current tenants and attract new ones. The education that we have learned from IREM, along with our own personal work experiences, and industry peers and experts allow us to make proper changes. The proper evaluation of the rental community, it's position in the local market and the delivery of the owner's goals and objectives are important in our job as managers. Do your due diligence and research properly before reacting or over-reacting to any situation.
- Owen Ahearn | Flag this comment for review