Waterton Residential Achieves Exceptional Year-Over-Year Returns with Rainmaker LRO™ Revenue Management
Optimized Pricing Strategies Return 9 Percent Overall Revenue Growth
ATLANTA, GA – February 26, 2013 - The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, today announces exceptional revenue growth and net effective rent lift realized by its long-time customer, Waterton Residential. From 2011 to 2012, Waterton experienced an average net effective rent lift of 7.2 percent as well as overall revenue growth of 9 percent, helping the company outperform its competition in almost every market.
“The Waterton team just gets it, and as a result they are implementing innovative strategies to maximize the capabilities of the LRO system,” said Andrew Rains, executive vice president of Rainmaker LRO. “Their collective experience within the multifamily industry, coupled with their innate understanding of what software-based, optimized pricing practices can deliver, has ultimately led to the success they have achieved. Their pricing teams trust in the system and the mathematical processes, and together they have yielded significant results.”
Since Waterton has used LRO’s optimized pricing platform for more than four years, and currently maintains 17,000 units on the system, the executive team was comfortable with the software and looked for ways to better utilize the system. One such innovative advancement was leveraging new approaches to renewal pricing by eliminating the standard renewal increase cap. “By taking the percentage lift cap out, we enabled LRO to price where we should be, or closer to ‘street price,’” said Greg Lozinak, executive vice president and chief operating officer for Waterton. “With the new strategy in place we experienced an average renewal increase of 6 percent from 2011 to 2012 and we still maintained an acceptable turnover to renewal ratio. This helped us reach almost double-digit revenue growth year-over-year.
“Additionally, we saw several long-term lease renewal increases in the 30-50 percent range. While these were not the norm, we did have residents who received and accepted double-digit increases. Increases of this magnitude would not have been possible had we not let the LRO system do what it was intended to do – drive net effective rents.” he continued.
Further ensuring their success with optimized, software-based pricing practices, the Waterton team understands they can’t out-think the LRO system. They know there can be discrepancies between what on-site teams think pricing should be and what the actual pricing recommendations are, and they have processes in place to maintain the correct pricing strategy. “There is a reason behind any change,” explains Barney Pullam, Waterton’s vice president, business process. “We encourage associates to raise red flags when they feel the pricing is off, but they also need to be able to substantiate the ‘why.’ When our teams raise concerns about pricing before granting an override, we dig into the system, reevaluate our parameters and competitor sets because we trust the math behind the pricing.”
About Waterton Residential
Waterton Residential, one of the leading multifamily companies in the nation, is focused on the acquisition and management of apartment communities in multiple markets. Since its inception in 1998, the Waterton Residential team has remained committed to outstanding customer service by providing a community its residents are proud to call home. With more than 19,000 apartment homes in over 50 communities in 13 states, the Waterton Residential brand signifies exceptional living experiences, a sense of community, and home. Waterton employs more than 500 associates who are committed to achieving the Waterton Residential vision – To Be THE Leader In The Multifamily Industry. For more information, visit www.watertonresidential.com.