Knowing what you are seeking in an apartment is the easy part of the search process. Finding one in your budget and location is where it can get a bit more complicated. Before you start contemplating your rental possibilities, you should first know how your apartment rent is calculated.
For over a decade, landlords would set a price every Monday morning for each individual floor plan in their community and that is how rent was set. As the demand for rental housing has increased over time, it has become necessary for landlords to utilize more complex pricing models. While some of the smaller apartment communities still calculate rent using more traditional models, an increasing number of landlords and property management companies now use a more methodical electronic approach.
The Revenue Management System
Today, it has become a lot more common for multifamily landlords and property management companies to utilize a software program, like YieldStar, to calculate the rent rate in their communities. This systematic process is complex and highly customizable, helping landlords maximize revenue on every apartment unit, every lease term, and every move-in date, for 365 days a year. In the most basic form the landlord inputs information about each unit, such as the number of bedrooms and square footage, and the software program establishes the rent. It weighs external factors into the equation such as occupancy, competitors’ rates, market conditions, and trends to calculate the best possible daily rate.
Advantages to Renters
Renters also benefit from a software program calculating their rent rate because it creates flexibility to meet each tenant’s individual unique rental needs. Making it easier to offer a variety of options in pricing based on their move-in date and length of lease, without the risk of over pricing. It manages lease renewals and expirations on a daily basis, and provides a flexible and fair housing rate to tenants. The software program allows leasing agents to focus on delivering excellent customer service, while eliminating subjectivity and human bias.
Rent rates are often calculated on a day-to-day basis, sometimes creating confusion about how your rent rate is determined. Our apartment finders can help eliminate any confusion about the complex and time-sensitive pricing process. They are up-to-date on inventory levels, often the first to hear about price decreases, and have access to many unadvertised specials. Leverage an expert in your local multi-housing market to help you secure the best rent rate for your budget.
*A version of this article previously appeared on Angie’s List.