Student properties are in perpetual lease-ups. Maybe that’s why there’s a fixation on maximizing occupancy over every other objective: the pressure to keep beds full as students continually move in and out can seem like all that matters.
Maximize profit in student housing
The trouble is, even 100% occupancy isn’t such a great result if many of those beds were leased for less than they might have been. Perhaps the property could have generated a higher NOI with lower occupancy and higher rents. In short, your bottom-line objective is not to keep properties full; for that matter, it’s not to get the highest rent prices either. Your mission is to generate maximum profit, regardless of where occupancy and rents settle out.
So it’s no surprise that properties scientifically determining rent pricing using revenue management software and market research have begun consistently outperforming even competitors with higher occupancy. Their software is balancing supply, demand and pricing to determine the perfect price to ask for each bed, every day.