How Apartment Rent Prices Are Calculated
Knowing what you are seeking in an apartment is the easy part of the search process.
Finding one in your budget and location is where it can get a bit more complicated. Before you start apartment hunting, you should first know how your apartment rent is calculated.
Apartment pricing history
For more than a decade, landlords would set a price every Monday morning for each individual floor plan in their community. As the demand for rental housing increased over time, it became necessary for landlords to use more complex pricing models. While some of the smaller apartment communities still calculate rent using more traditional models, an increasing number of landlords and property management companies now use a more methodical electronic approach.
The Revenue Management System
Today, it has become a lot more common for multifamily landlords and property management companies to use a software program to calculate the rent rate in their communities. This systematic process is complex and highly customizable, helping landlords maximize revenue on every apartment unit, lease term and move-in date. In the most basic form the landlord inputs information about each unit, such as the number of bedrooms and square footage, and the software program establishes the rent. It weighs external factors into the equation, such as occupancy, competitors’ rates, market conditions and trends to calculate the best possible daily rate.
Advantages to apartment renters
Renters benefit from a software program calculating their rent rate because it creates flexibility to meet each tenant’s unique rental needs, making it easier to offer a variety of options in pricing based on their move-in date and length of lease without the risk of overpricing. It manages lease renewals and expirations on a daily basis, and provides a flexible and fair housing rate to tenants. The software program allows leasing agents to focus on delivering excellent customer service while eliminating subjectivity and human bias.
Apartment finder perks
Rent rates are often calculated on a day-to-day basis, sometimes creating confusion about how your rent rate is determined. An apartment finder can help eliminate any confusion about the complex and time sensitive pricing process. They are up to date on inventory levels and often the first to hear about price decreases. Contact an expert in your market to help you secure the best rent rate for your budget.
As of Jan. 6, 2016, this service provider was highly rated on Angie's List. Ratings are subject to change based on consumer feedback, so check Angie's List for the most up-to-date reviews. The views expressed by this author do not necessarily reflect those of Angie's List.
