Using Price-Changing Tools to Market Apartments and Manage Revenue
More and more apartment owners and managers are using price-changing tools as a source of revenue management and part of their community's marketing because it gives a sense of urgency. These dynamic pricing strategies are similar to the ones used by airlines for decades and Amazon.com more recently in that they are dictated by software algorithms that track supply and demand and then tweak asking rents accordingly. The result is that if a handful of apartments are scooped up by new residents over the course of a busy weekend, the monthly rental rate for similar units in the same community could increase on Monday.
At the same time, it's important to note that dynamic pricing can also drive prices lower when demand eases. By learning about the local rent market and timing it right, one apartment resident can get a considerably better deal than his neighbor in the very next unit. The article's author cites one apartment community in Charlotte where rents for one-bedroom units hit $588 a month last May, which was down from a peak of $806 just three months earlier.
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