MEB Management Services Implements Rainmaker LRO Revenue Management

  • Rainmaker Group (The Rainmaker Group)
  • 05.25.11
The Rainmaker Group announced that MEB Management Services initiated implementation of the Rainmaker LRO™ multifamily revenue management system.

 MEB based its decision on results of a pilot test where LRO delivered 6 percent higher revenue growth over control properties. MEB is an Arizona-based third-party apartment management company that operates just under 20,000 units. Rainmaker is the leading provider of automated revenue management software and services to the multifamily housing and gaming/hospitality industries.

“MEB manages 90 apartment communities for more than 40 companies, so it was essential that we conduct a thorough pilot test of LRO to verify if it would increase revenue for our owners as we were told it would,” said Melanie Morrison, CPM, co-owner of MEB Management Services.  “Well, it did. LRO generated an average six percent in revenue growth for three months across our test properties. We were very pleased with the results and found the people at Rainmaker just terrific to work with; they made it so easy! Our revenue management program continues to hit it out of the ballpark, and we expect to roll out the system to more than half of our properties by year’s end.”  MEB is the largest third-party apartment management company in Arizona and employs more than 600 real estate professionals dedicated to delivering owners the best operating results.

Morrison noted that MEB will use Rainmaker LRO to maximize revenue at the fastest pace possible from strengthening markets. “LRO recognizes and adapts to variations in demand and other factors across our markets very quickly and suggests optimized pricing based on mathematical analysis. We also greatly value Rainmaker’s weekly pricing call meetings because they keep our team focused on the things that drive revenue.  We made a great decision in choosing Rainmaker as our partner for revenue management.”

“From an owner’s perspective, I like using LRO on our portfolio for three main reasons,” said David Butler with Residential Equity Partners that uses MEB’s management services. “LRO ensures our pricing is consistently evaluated on a daily, weekly, and monthly basis by our management company’s team. LRO also maintains pricing objectivity because rates are based on mathematical analysis of concrete data, not subjective personal opinions. Additionally, LRO enables us to consistently evaluate and track new lease pricing, and those of our competitors, using net effective rent calculations.” 

LRO is one of the leading multifamily lease rate price optimization solutions used to maximize revenue from apartment leases. Rainmaker’s LRO system produces optimized pricing recommendations for a large variety of unit types based on hundreds of factors that influence rate setting, including traffic and lease duration, move-in dates, competitive influences, and other metrics. The system also produces enterprise-wide demand forecasts by measuring and analyzing historical and current market metrics and performing calculations necessary for occupancy predictions that are dynamically updated as market conditions change.

Related Articles
want to read more articles like this?

want to read more articles like this?

Sign up to receive our twice-a-month Watercooler and Siegel Sez Newsletters and never miss another article or news story.