In multifamily investment and management, optimizing net operating income (NOI) is crucial for success. Here are five effective ways asset managers can utilize comps data to improve their asset's NOI.
By analyzing comp rents, asset managers can determine if their property's rents are below market average. If underpriced, strategically increasing rents captures true market value and maximizes rental income. Additionally, comps data can shed light on untapped revenue streams, such as amenities or services that their comps are successfully monetizing. By leveraging this information, asset managers can explore ways to enhance their property's offerings and generate additional income.
Declining rents and negative reviews in neighboring properties indicate a potential tenant pool who may be seeking better options. Property and asset managers can address shortcomings highlighted by underperforming comps to position their property as the superior choice. This proactive approach can attract dissatisfied tenants and increase occupancy rates. Discover how Plot-Z can help you monitor your comps' performance.
To set competitive rents, asset managers must gather a robust sample of rents to identify prevailing rates for comparable units. This ensures units are attractively priced without undercutting or overcharging. In today’s fast-paced rental market, this is an ongoing process that requires diligent monitoring. Equally important is monitoring your comps for concessions. Discover how Plot-Z can automatically notify your team of concessions and rent movements.
RealPage's LRO software empowers asset managers to dynamically adjust rental rates based on market pricing, supply & demand, and occupancy rates. However, manually updating comp rents on LRO consumes valuable time which can be spent on tenant requests or property tours. If your team is looking for an easy way to update your LRO comp rents, Plot-Z’s automated solution can help free up your time. Request a demo
When considering renovation or upgrade projects, analyze pricing data from successful comps renovations. This provides insights into potential return on investment (ROI) for specific upgrades. Examples include EV-charging stations, keyless door entry systems, or coworking spaces for remote workers. With this data, asset managers can make informed decisions on renovations tailored to their market's demographic, attracting higher-quality tenants and boosting NOI.
