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Rent Maximization Tool (RMT)
Designed for multi-family properties, the O’Connor & Associates RMT weighs a subject property’s pricing and features against its closest competitors to determine ideal market rents on a per-plan basis. The service incorporates a site visit to the subject and competitive market area to best understand its unique dynamics and to determine detail specific features, amenities and location-based attributes of competitive properties. The analysis produces an objective review of the current rent structure for the subject and its competition. The resulting report recommends how the owner or management company can adjust their pricing to increase rental income or occupancy and maximize the asset’s overall performance. Additionally, this analysis reveals high-impact feature upgrades that would provide the greatest return on rental rates.
Analysis Deliverable:
- Suggested rent changes with net effect
- Highlighted feature deficiencies and opportunities
- Overview of competition
- Graphs portraying market and adjusted rents
- Detailed plan mix data
- Detailed property data
- User-friendly report
- Summary of results
Typically, one or more of the floor plans within a property are under valued. While a good portion of floor-plan rents may be appropriate, this under-pricing can result in a 2-5% loss in revenues on a monthly basis. Since competitive pricing tends to be fluid, this tool can be updated on a monthly, quarterly or semi-annual basis to ensure ideal rental structures are maintained. When used at the acquisition phase, the RMT analysis can best position your properties for peak revenue return.
RMT allows independent verification of appropriate market rents through:
- Detailed site visit to subject and top 5 competing properties
- Analysis of competitive:
- Features
- Amenities
- Services
- Location
- Aesthetics
Since 1984, clients and media have relied on O'Connor & Associates as a credible source of market insights, market data and consulting advice. Our extensive staff of real estate professionals work together to share market expertise, allowing project goals to be accomplished in a timely manner. For more information on housing market segmentation studies, contact Scott Sherrill at 713.375.4264.
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