Teams we talked with liked LRO because they had buy-in on the rate process. They were more confident using it, and LRO delivered consistent, solid results.
Alpharetta, GA (PRWEB) October 12, 2010
Holland Residential operates 67 communities across six states with the objective of creating and managing new apartment communities in the Western United States’ most desired locations while improving residents’ quality of life. Holland Residential prides itself as being an innovative company with an entrepreneurial corporate culture, and in late 2009 it assessed ways to take its business to the next level by leveraging technology.
Top executives at Holland wanted to ensure they were achieving the highest return on investment at all their communities and decided to evaluate the most widely used multifamily revenue management solutions to accomplish that.
In search of the best revenue management system
The company invited the two leading solution providers to present their systems. Bryan Pierce, revenue manager for Holland Residential, explained, “The sales people did a good job of demonstrating their systems and both claimed excellent results, but we wanted to base our decision on how the systems performed in actual property implementations and learn how community staff embraced each system. We firmly believe the attitude of frontline associates has a direct impact on how they present pricing to customers. Price must be presented confidently to sell and realize the benefit of multifamily revenue management tools.”
Holland Residential’s team visited 140 different communities in 90 days and met with leasing staff, managers, and corporate executives to learn how they felt about their systems. Holland’s evaluation was focused on direct competitors in markets where both products had good representation.
After meeting with more than a hundred multifamily professionals, Holland Residential found the majority of operators surveyed who utilize the LRO revenue management system from The Rainmaker Group preferred it over manual pricing, which was not the case for the competition.
Rainmaker’s LRO stands out
“It was clear after our evaluations that LRO was the superior product,” said Pierce. “LRO proved to be the most effective tool and provided the best revenue results.” Pierce found the system allowed frontline staff to enter competitor and market information so rates were not created in a vacuum. “Teams we talked with liked LRO because they had buy-in on the rate process. They were more confident using it, and LRO delivered consistent, solid results.”
Go with the system that delivers the best results
Holland Residential found the LRO system was more flexible in the field and enabled operators to make pricing decisions that were unbiased and unemotional. It allowed the communities to monitor market conditions to develop more accurate forecasts that benefited both renewals and new-lease pricing. “Neither of the systems was a perfect black box that solved all revenue issues,” Pierce said. “But if you are going to choose a system, why not go with the one that has been independently verified to deliver the best results?”
Pierce noted the other company’s sales presentation included its system’s ability to provide dynamic rate setting parameters, which sounded effective. In practice, however, this limits the revenue opportunity because it based rates on “sustainable occupancy,” which was an arbitrary metric set by property operators. The result was the system optimized revenue within the constraint of the emotionally-set ‘ideal’ occupancy. LRO determines an optimum revenue generation point through a balance of occupancy, historical and seasonal demand, and other factors, rather than a subjective occupancy standard.
“LRO lets the property manager, regional manager, and revenue manager look at pricing trends and other issues every week and make manual overrides together, if needed, to price aggressively to push limits and test rents, or to move product,” Pierce said. “With the other system there was one of eyes on pricing with an occasional second set every so often, which we saw as a major source of revenue loss.”
Holland Residential rolls out LRO in 54 properties in 60 days
Based on its findings, Holland Residential selected LRO for its portfolio of communities and implemented it at 54 of its properties in 60 days, which Pierce said is a credit to both Holland and Rainmaker’s installation teams.
“Holland Residential believes in creating partnerships in every area of its business,” said Pierce. “We see LRO as an integral part of our corporate culture. LRO will not only help us increase our revenue but also enable our employees to grow and strengthen their expertise which will benefit them and our properties.”
About Holland Residential
The Holland Organization was launched in the spring of 2001 with a vision to create and manage new apartment communities in some of the Western United States’ most desired locations while improving resident’s quality of life. Holland Residential, a branch of the Holland organization, operates under the highest level of dedication through its Core Values. These values include great people, great business, exceptional customer experience and having fun. These values along with our hand selected skilled leadership make Holland Residential the most rewarding and inspiring organization in the multifamily industry.
About Rainmaker Group
The Rainmaker Group is a Microsoft Gold Certified Partner software and consulting services company that provides the LRO profit optimization solution that enables multifamily housing operators to maximize revenue from apartment leases. LRO is used by more than 60 percent of the companies deploying revenue management systems in the industry and, uniquely, LRO’s lease/rent revenue optimization success has been verified by independent third party consulting firms. For more than nine years LRO has delivered optimized leasing rates to the largest operators in the industry including Archstone, Equity Residential, Post Properties, Laramar Group, Home Properties, Simpson Housing, Mid-America Apartment Communities, Carmel Partners and other leading multifamily housing companies.