Apartment Rent Optimization Engine Resulted in Overall Increase in Revenue of ~USD 2 Million per year

Business Objective

Our client, a large apartment rental management company in the US wanted to determine rents, lease terms, and promotions using advanced analytics.

The client relied on an intuitive process to derive insights from ad-hoc analyses to run their operations. They wanted to switch to an automated advanced analytics framework that would help increase revenue and occupation rates.

Challenges

Difficulty in accommodating macro-economic factors such as demand, supply, seasonality, etc., in addition to apartment features that influence the demand
Difficulty in accounting for the impact of the availability of similar options in the market on the demand, as the data was not very robust

Solution Methodology

Performed exploratory data analysis on existing data in line with business requirements
Cleansed and collated 3rd Party Data such as macro-economic factors, number of vacant units, seasonal renewal rates, etc.
Built econometric models to estimate the optimal rent for each apartment
Designed and implemented business rules to optimize promotions needed to lease the unit within a specified amount of time
Developed a custom Excel-based tool for the user to access the recommendations

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Apartment Rent Optimization Engine Resulted in Overall Increase in Revenue of ~USD 2 Million per year

Business Objective

Challenges

Solution Methodology

Business Impact

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