Company Realizing Impressive Pricing Changes With Revenue Management Platform
ATLANTA, GA – September 5, 2012 – The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, announces superior six-month results for Green Leaf Partners, an environmentally conscious real estate investment company based in Danville, Calif. The company deployed Rainmaker LRO revenue management software at 2,200 units in February 2012, and within the first six months of implementation has realized significant revenue growth.
Since implementation, the company has experienced considerable improvement in unit pricing, with notable market improvement of their Arizona and California properties increasing 4.7 and 3 percent, respectively. All of the increases have delivered greater market advantage as well as above market comps in all locations.
Green Leaf Partners was looking for ways to consistently optimize revenue growth across the portfolio using more informed pricing strategies to gain greater access and availability of controlled pricing as well as improve renewal pricing.
Since Green Leaf was new to revenue management, it was difficult for some in the beginning. It’s hard to believe raising or dropping the prices in response to demand or historical patterns could work so flawlessly, said Linda Oliver, asset manager for Green Leaf. But having worked with the Rainmaker LRO product and the Rainmaker team in the past, I knew it wasn’t a ‘set it and forget it solution.” The process is more transparent, easy to implement and understand. By combining the power of the LRO software with input from the LRO business consulting team, our staff has greater confidence using these consistent pricing trends. This formula helped us to more accurately control price increases or decreases in response to changes in the market, while avoiding the big pricing swings that can happen when pricing decisions are made too quickly.
Linda explains there is some hesitancy when first engaging a revenue management program. She said, the gut reaction from the old school of thought (before a revenue management software implementation) was to throw a concession at the long-term vacancy or exposure issues. Not being able to use the concession crutch was difficult. I liken it to a drug addiction – it’s hard not to fall into old habits.
Delivering such stellar results to a company somewhat hesitant about the capabilities of a revenue management software system helps reinforce the value Rainmaker LRO brings to all our clients, said Andrew Rains, executive vice president of Rainmaker LRO. It is their belief and trust in our system, our implementation team and commitment to customer service that helps expand the importance of revenue management within the industry. Revenue management isn’t just for the larger management companies or REITs with tens of thousands of units, rather it’s a solution designed for owners/operators looking to truly improve revenue and drive strategic pricing. This is a homerun for both Green Leaf and Rainmaker LRO.
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.