Rose Associates, Inc., the New York-based multifamily real estate developer and manager, has been employing RealPage’s AI Revenue Management (AIRM) solution at select properties to optimize pricing and reduce vacancies. Since January of this year, Rose has utilized the machine learning model at nine of its fully market rate properties, including Manhattan properties The Ventura, 70 Pine Street, and Riverwalk in Port Imperial, New Jersey.
“We are leveraging AIRM at a limited number of properties, and it is clearly proving to be a valuable revenue management tool,” said Scott Marino, executive director of multifamily at Rose Associates. “The intelligence we are accessing informs our pricing and allows us to reduce vacancies. There are a number of benefits, with asset optimization being primary among them.”
The backbone of the AIRM solution is made up of historical data from 6M lease transactions across the US over the last five years. The data set is far too large for an individual to analyze, but the technology can quickly deliver an analysis that allows leasing professionals to better predict supply and demand, and to better forecast whether a tenant with an expiring lease is likely to renew.
Rose’s Revenue and Analytics team has decades of experience pricing rentals in the NYC Metro Area. AIRM is an additional tool that the team now has at its fingertips. While the technology proposes a price based purely on data, Rose team members still have the ability to adjust pricing based on their knowledge of the market. At the properties where AIRM is deployed, Rose can adjust pricing daily and react quickly to trends.
Renters also benefit thanks to the clarity the technology provides. Rose leasing agents present pricing and, on many occasions, renters learn they can save simply by changing their move-in date or the length of their lease.
Marino added, “We’re learning how our AIRM tool can help us meet the needs of renters who are looking for both short and long-term leases. We are able to give renters what they need and want, and owners are enjoying how their properties are positioned for sustained and more robust income streams going forward.”