Discovering Hidden Treasure in Your Unit Amenities – Conflicting Amenities
November 18, 2024 by Donald Davidoff
This is the third in a 9-part series of “quick hit” blogs on the quickest way to uncover hidden revenue from leasing based on the presentation Bryan Pierce, Carol Enoch and Donald Davidoff gave at NAA’s 2024 Apartmentalize conference.
If it weren’t for the significant loss of revenue, and thus value, our third “amenity fail” would be truly humorous. This is conflicting amenities.
Fail #3: Conflicting Amenities
The most impactful example here is a 30-story high-rise building in which the entire 12 stack had both “Balcony” at $100 and “No balcony” at -$45 for a net of $55 on each of those 30 homes. Upon quick inspection, by either checking the Satellite View in Google Maps or asking the Community Manager, we quickly determined the entire 12 stack did in fact have balconies.
Undercharging 30 homes by $45 is $1350 per month or $16,200 in lost rent. Assuming a 6% cap rate, this equates to missing more than a quarter of a million dollars in value! ($270,000 to be precise).
Other examples can come from conflicting renovation charges, view premiums and kitchen and bath amenities, just to name a few.
Stay tuned for the next “quick hit” in this series
Author
Donald Davidoff
Donald Davidoff is the CEO & Co-Founder of REBA. He is recognized throughout the rental housing industry as a thought leader in pricing, marketing, leasing & business intelligence. Donald is perhaps best known for leading the development and implementation of the Lease Rent OptionsTM (LRO), the industry’s first automated demand forecasting and price optimization system. A former Senior Vice President at Archstone and Executive Vice President at Holiday Retirement, Donald works with C-Suite clients to assess their operational and technology platforms and implement impactful projects.
