Growing Revenue in Multifamily: The Ten Percent Rule | Multifamily Insight Blog

There are some great ideas in this article by John Wilhoit Jr. Check out his blog Click Here 

Often in a given marketplace competitive properties have many similarities. Granted, they may not have the same look or facade, but rent rates are similar (revenue per square foot of occupied space, for example) amenities are similar, they are the same distance from job centers or shopping etc. A deeper look will often expose that tenants are coming from the same pool; tenants have similar job titles, educational levels and credit scores. Same, same and more of the same. The ten percent rule proposed here is not an exercise to keep management busy or to assuage any particular interest group. The objective is to increase occupancy, and not just through the continued use of concessions.

The ten percent rule states that you will consider any single change from the norm in up to ten percent of the units in a development.

The following examples assumes 100 units or more and that not more that 10 units in total are “in play” to unconventional offers. The objective is to fill vacants, not change the character or viability of the property. Here are some examples on how to apply the ten percent rule:

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