The new way many rental rates are set.
blog~simplesearchapts.com June 8 2010 08:27:41 PM
On the last post, we
touched on how properties set the rental
rates. More and more properties are using rent optimizing programs like Yield
Star. I understand the benefit to large property groups. You can see the
justifications by Yield Star by clicking here.
Programs like Yield Star reconfigure rates daily. The price
can, and often does, change on a daily basis.
Now, my concern is how these types of programs effect the
renter. We no longer see the “move in special” because the rates are already incentivized
by the program. So,
according to properties, you are already getting the best deal and the lowest
rate.
What they do not want you to know is that you are not always
getting the best rate. Since rates change so quickly, how can you ever know? The
changes in rate are based on move in date, lease term and number of like units
available to lease. Any change in any one of the factors can change the rate significantly.
So what does this mean to the renter? Well, it definitely
complicates things. The leasing agent will tell you that you are “getting the
best rate” and that “specials are built into the price”. That is not always the case. For example, if
your target unit is move in ready now, and you do not want to move in for 2
weeks, then you can expect to pay a lot more for that unit. That is how the
program works. It charges more for units
the longer the move in date is from the 1st day of availability. That is just one
example of the flaws I see in this program.
Granted, I have a different perspective. I am an advocate for
the renter. I do not care about maximizing the bottom line of the property. I care about finding a good deal for our
customers. The reality is that these types of rent optimizing programs are in
place to benefit the property owner.
This change in the rental scenery increases the importance
of using a professional apartment specialist or locator. A good apartment
locator has information on market trends, comps and can see the big picture.
There is no way the “average Joe” can completely understand
this shift in the rental market. Renting an apartment without the assistance of
a professional locator is just silly.
So do yourself a favor, get a hold of a qualified apartment
locator the next time you need a new apartment.
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