The Truth About Revenue Management and Its Value

Written by Rachel Farrow

In today’s multifamily landscape, precision and flexibility matter. Five years beyond the pandemic, the industry continues to navigate shifting state and federal policies, evolving workforce norms, and new generational trends. In this unfamiliar terrain, revenue management is not just a helpful tool but a strategic imperative. With this said,  implementing a Revenue Management System alone isn’t enough. The full value comes from how — and by whom — it is managed.

Proven Value Across Economic Cycles

It should be pretty easy to identify what factors contribute to revenue growth, but visual and consolidated data give you the full story. According to RealPage, properties utilizing their RMS have achieved a "2–4% revenue outperformance compared to their market across various economic cycles." This isn’t about charging the highest rent, it’s about achieving the right rent, which relies on real-time data and historical trends.

Optimized pricing should increase resident retention and minimize vacancy loss. Generating renewals via an RMS ensures that monthly exposure and a unit’s proximity to market are considered.

Revenue Optimization, Not Maximization

A common misconception is that RMSs are about driving rates up. In reality, it’s about precision; balancing supply and demand to find the sweet spot. Effective revenue management creates pricing that supports community health: fewer vacant days, more predictable renewals, improved flexibility, and cash flow.

Data-Driven, Human-Managed

Today’s RMS platforms offer:

• Predictive forecasting to project performance.

• Daily price optimization helps your units adjust based on your property’s supply changes.

• Renewal generation based on real-time data considers proximity of current and asking rents.

• Integrated data from Property Management System (PMS.)

• Market tracking and visualization allow you to easily see your relative value compared to your market's trends.

These capabilities are holistic and impactful, but only when they’re correctly implemented, monitored, and aligned with company objectives through expert advisory. Even the most advanced RMSs are as effective as the data feeding into the model and the people managing the model’s settings.

To truly utilize the system’s potential, it must be:

• Audited quarterly

• Monitored weekly (at minimum)

• Occasionally adjusted in response to events like renovations, staffing shortages, natural disasters, PR challenges, regulatory changes, or dispositions.

Revenue management is not a “set it and forget it” solution. It demands expertise, attention, and adaptability.

Why Expert Advisory Matters

Having an expert advisory team ensures your RMS propels you towards your goals. We know the models, what makes them work for you, and your operational realities.

Every year, you are likely being asked to do more with less ...  can you afford to manually price each unit in your PMS without access to real-time insights? Can you risk vacancy loss, renewal misalignment, or missed pricing opportunities? The answer is likely no.

And frankly, that’s the truth about revenue management.