Many people are now turning to renting instead of buying a home. The market has high demand levels right now and landlords are all very keen to utilize that to the fullest. With the launch of a new dynamic pricing software, they are now going to determine the rental amounts by considering the demand in the market. The new software application allows landlords to increase the rental amounts in accordance to the current demand and supply levels. When there is a lot of demand in the market, the software indicates that tenants should be charged a higher amount and if the demand levels reduce, the software guides the landlords to lower the rents.
The revenue director of a property management company who has used this software told us the process that this new way to determine rent amounts is great and will be loved by all the landlords in the industry. It makes the rental pricing situation more manageable and removes all emotions out of it.
Actually, the truth is that dynamic pricing software has been around for nearly the past decade, but was not being adopted in huge numbers, until now. Landlords cannot ignore the fact that so many people are now becoming renters instead of being homeowners. As such, the need of such a software is being realized so that rents can be set more efficiently, especially if landlords have many rental units to manage.
The president of another reputed property management company said that there are over 5 million rental units that are now being priced on the basis of this new software. Among the units which are managed by property management companies, this number accounts to 30% of the units. Considering the value that was recorded two years before, this is quite an impressive rise, when the software was being used by only 10% of the units.
A vice president of a reputed real estate website stated that the dynamic pricing software is a great choice if landlords want to keep more of their units occupied. Even if rents are decreased, it does not really hurt profits because at least most of the tenants can afford them and pay them without any issues. If rents are high, there are so many tenants who start defaulting on them, which hurts more than revenues.
The software can also be used for managing lease renewals and even offers discounts to renters to help retain them.
