2009-04-06, 12:49

Smart Property Management in a Down Economy

By: Multifamily Real Estate Industry Team
As the hard times continue to become harder for apartment owners and their renters, smart property management is key. One property manager, Resource Residential, recently described a number of interesting things it is doing to keep occupancy high in the apartments that it manages for Resource Real Estate Investors.

Implementing a New Revenue Management System for Daily Pricing of Apartments

Resource Residential will soon roll out a lease/rent optimization system (LRO) that will enable it to calculate the optimal rent on any given apartment on any given day. The program is similar to that used in other industries (hotel and airline, for example) to price products on a daily basis in accordance with daily supply and demand. The intent is to ensure that all apartments are appropriately priced at all times in every market in which Resource Real Estate has apartment properties.

Marketing Less Expensive Resource Real Estate Properties to Current Tenants to Keep Occupancy Rates High Across the Portfolio

Some tenants in "Class A" properties may no longer be able to afford their rent payment, but are reluctant to move to something they would consider inferior. To address this, Resource Residential has embarked on what it calls a "guerilla" marketing campaign to promote Resource Real Estate's "Class B", fully amenitized, properties that are in similar high quality neighborhoods, with access to the same schools and the same level of public services. Keeping tenants within Resource Real Estate's portfolio of properties while still enabling them to significantly reduce their monthly rent payments is a win-win for all.

Assisting Residents "Weather the Storm" by Organizing Inexpensive Community and Social Activities

In what seems to be an excellent customer care initiative, Resource Residential is organizing community and social events at Resource Real Estate's properties for tenants. For example, Resource Residential is hosting movie nights and other events that promote camaraderie and bonding within the community. These events help ease tenants' anxieties, help them save on entertainment fees, and also build loyalty and a sense of belonging to the community.

For more information on Resource Residential, go to its website at www.resourceresidential.com.

(This entry posted by Karen Estelle Carey, a member of Womble Carlyle's Real Estate Development and Construction groups.)

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