Company also Benefitting from Increased Renewal Rates
ATLANTA, GA – November 19, 2012 – The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, today announces impressive renewal and retention results for F & F Realty, Ltd, leaders in residential and commercial real estate management and development in the greater Chicago area. The company deployed Rainmaker LRO revenue management software across 2,300 units in March 2012, and to date has garnered a retention rate of 55 percent while increasing renewal rents by 5.1 percent.
With revenue management experience at F & F-owned hotels in Chicago, the executive team understood the importance of a multifamily revenue management pricing system and looked to maximize revenue, free up staff time by reducing the manual management of pricing, eliminate fear-based pricing and develop a solid pricing module to build credibility. F & F sought software that was easy to use and manage, fairly priced with excellent user references, and ultimately one that optimizes rents with mathematical and historical analytics to establish competitive rates.
When we were trying to optimize rates on leasing and renewals before implementing Rainmaker LRO, we found it difficult to factor in all of the variables including competitor surveys, retention, exposure, leasing velocity, traffic and seasonality, said Valerie Derouen, Regional Manager for F & F. We wanted a software system that was fact-driven opposed to emotionally driven.
The rapid improvement F & F has realized in retention and renewals since deploying an optimized software-based revenue management platform is a prime example of what the system can really do, said Andrew Rains, executive vice president of Rainmaker LRO. We are thrilled they were able to achieve these significant results with our solution and are excited to witness what further impacts and applications they will see in the future.
With predetermined rates and monthly lease-term options empowering leasing employees, F & F has seen a 4 percent lift on average for the portfolio, surpassing their competitive set. The firm’s Briarwood Terrace community has shown the best improvement in market rate rents with a 5.8 percent increase in new rentals. According to F & F, LRO software built the team confidence necessary for increasing rates, a confidence verified as apartments continued to lease-up at desired velocities.
Beyond the benefits realized on renewals and retention, the implementation process was streamlined, as well. I feel that our implementation was flawless, said Derouen. We had our first kickoff call on February 3, 2012 with a go-live date of April 15, 2012. We were 38 days ahead of schedule and went live on March 8, 2012. We have rolled out several new software applications in the past 24 months and hands down this was the easiest implementation I have ever encountered.
Rainmaker LRO is the leading multifamily lease rate optimization solution used to maximize revenue from apartment leases. The system calculates optimized pricing based on multiple factors that influence rate setting, including traffic and lease duration, move-in dates, competitive affects and other metrics. The system also produces enterprise-wide demand forecasts by measuring and analyzing historical and current market metrics and performing calculations necessary for occupancy predictions that are dynamically updated as market conditions change.