When a property’s performance misses targets, multifamily firms are often quick to pull the pricing lever. However, by better integrating marketing and pricing strategies, firms can often solve performance lags with more than just price.
During a panel discussion on strategies and best practices for ensuring revenue management and demand generation worked together seamlessly during the 2016 OPTECH Conference & Exposition, Catherine Swaback, director of marketing strategy at Alliance Residential, offered a great example of how firms can save costs and preserve asset value by looking more holistically at marketing and pricing strategies.
The company wanted to reduce exposure at one community that was having some performance issues. The initial strategy was to reduce rent. But reducing the rent not only negatively affected property revenue, but also property value. Rather than continue to drop rent to drive down exposure, the team layered in a new targeted marketing strategy. This integrated approach was less costly overall and resulted not only in reduced exposure but in actual rent growth.