Archstone's nine-month, 40-community test of professional lead handling and guest card creation proved that increased lead volume can drive higher revenue per unit, even in a soft or declining market
Emeryville, CA (PRWEB) March 8, 2010
Multifamily strategy consultant Steve Lefkovits, operator of MultifamilyRevenue.com, announced the release of a white paper documenting a nine-month test by Archstone, a leading multifamily operator. The test evaluated multifamily revenue management using The Rainmaker Group's LRO ("LRO") lease rent optimization system and professional prospect guest card creation utilizing Level One's Central Leasing Office. Results of the study showed that Archstone's communities that used Level One's call center and automated lease rate optimization from LRO generated 1.5% more revenue than test communities relying on self-management of inbound phone call leads.
"Archstone's nine-month, 40-community test of professional lead handling and guest card creation proved that increased lead volume can drive higher revenue per unit, even in a soft or declining market," said Steve Lefkovits, who authored the white paper documenting the test. "Archstone's 1.5% revenue boost resulted from harvesting new leads from existing marketing sources and automatically feeding that prospect traffic to the LRO system. LRO moved rents in response to demand, increasing revenue per unit in the test properties. "We estimate that on a "typical" property, this kind of result would equate to an incremental $45,000 - $67,500 in annual net operating income. This new white paper (linked here) lays out the analysis."
The Archstone trial compared 20 test properties with 7,200 units using Level One's call center against an equal number of properties in a control group that did not use the call center Level One answered the phone 98-99% of the time, versus 50-60% of the time at the control properties. Additional guest cards were captured, effectively increasing demand for the properties. LRO set rental rates based on scientific demand analysis in both the test and control groups. The 1.5% revenue increase in the test group was validated by an independent international consulting firm. "The revenue increase was not from increased occupancy, it was from real-time visibility into the new, higher demand," Lefkovits explained. It's exciting that even a sophisticated company like Archstone can increase prospect leads and income by having 98-99% of their inbound sales calls answered."
To download the white paper, please use this link below:
MultifamilyRevenue.com is the apartment industry's definitive online resource for business information about revenue management and optimization best practices and welcomes the participation and contributions of experts in the field. MultifamilyRevenue.com provides multifamily housing operators with objective, trustworthy information on how to increase revenue and optimize and stabilize lease/rent pricing through the adoption of multifamily revenue management technology. MultifamilyRevenue.com and the Apartment Internet Marketing Conference are owned and operated by Joshua Tree Internet Media, LLC.
Steve Lefkovits, Executive Producer
5834 Vallejo Street
Emeryville, CA 94608
Julie Keyser-Squires, APR
180 River Springs Drive NW
Atlanta, GA 30328