You are here

The Importance of Online Reputations on Asset Performance

“The role of online reputation is consistently a factor through a positive correlation between ORA Scores and Property Performance compared to the market.”

There is a noticeable correlation between market returns and online reputation. RealPage partnered with J Turner Research on a 34-month study to determine the impacts of online reputations and their relationship with revenue performance.

The study investigated financial and operational metrics from RealPage as well as the Online Reputation Assessment (ORA) benchmark from J Turner Research. Nearly 6,000 class A, B and C communities from every decade since the 1900s were reviewed.

“We’re excited to announce the results of the study that demonstrates and validates the relationship between changes in online reputation and revenue performance over the market,” said Rich Hughes, SVP Data Science at RealPage, in a release. “In an environment of limited rent increases and shifting prospect expectations, paired with the need to continue to drive yield and NOI, reputation is now a proven lever to impact asset performance.”

What was found is that for each ORA point improvement, communities saw, on average, a three-basis-point premium to market returns. Analysis of the four regional markets of Dallas, Phoenix, Atlanta and Seattle shows higher ORA levels equal higher renewal rates. The opposite is true: Lower ORA scores face the potential of renewal problems.

“This validates the need for a reputation strategy to stay ahead,” said Jay Parsons, Deputy Chief Economist and Vice President of Asset Optimization at RealPage, in the release. “Properties with lower ORA scores should build a strategy around raising their scores to increase property performance and value, while properties with existing higher ORA scores should focus on maintaining their scores to protect property performance and value gains.”

The findings differ by market and community type, but ORA scores compared to the communities’ performance related to the market is consistent.