REVENUE OPTIMIZATION &ASSET MANAGEMENT

CASE STUDY

WHY RENTPUSH

REVENUE OPTIMIZATION& ASSET MANAGEMENTSpherexx Optimize (formerly RentPush) was established in 2013 as an asset optimizer and stabilizer that lifts revenue while streamlining workflows, integrations, and auditing functions.

Spherexx Optimize is algorithmic, scientific, and artificially intelligent. It serves and it learns based on the company’s specific goals and objectives.

Although unique in many respects, these aspects are most noteworthy in relationship to other revenue management providers:

LEVERAGING THE POWER OF PRICING OPTIMIZATIONThe following, current case studies showcase how Spherexx Optimize has performed for different types of product in various markets. The program is highly adaptable to specific income goals and supported by an experienced, professional account management staff.

• Integrations with Property Management Software of Choice

• Dedicated Account Manager/ Revenue Manager

• No Additional Licensing, Maintenance, Training Fees

• 100% Optimize Team Setup

• Automated Pricing and Override Options Available

• No Outsourcing: Under One-Roof on American Soil

• Outstanding Customer Service: Humans Answer the Phone

• No Portfolio Limitations

• Built-in Accounting Audits

“Spherexx Optimize was literally worth a million dollars to us.”Edward B. Partridge, CPM®, HCCPAsset Manager, MacDonald Companies, Inc.

Spherexx Optimize

HOW IT WORKS

DATA IN AND OUT

2SPHEREXX.COM® | 9142 S SHERIDAN ROAD, TULSA, OK 74133 | 866.491.7500 | WWW.SPHEREXX.COM | [email protected]

NEW LEASE PRICING& EXPIRATIONS GRID

RENEWAL PRICING& EXPIRATIONS GRID

Competitors Pricing Trend

Competitors Pricing Guestcard

Demand Forecast with

Seasonality

UnitAmenities

RenewalMTM

Policy

RenewalCap

RenewalTerm

Preference

FloorplanAmenities

BlackoutExpirations

ExpirationManagement

Min/MaxControl

PricingLength

RentControl

Unemploy-ment

CPIOccupancy Trending

Expirations Detail

Leasing Velocity

Current Vacancy

TargetOccupancy

Aggressive-ness

ExpectedGrowth

HistoricalPricing

TurnaroundCost

ECONOMIC COMPETITORS PROPERTYPREFERENCE

FAIR PRICINGFORECAST SUPPLY

AMENITIES

RENEWPOLICIES

RULES AND CONTROLS

PARAMETERS

DEMAND

MARKET AREA TREND-$43 PER UNIT / -4.7%* 9 Zip Codes / 10 Mile Radius

328 Units | 20-Month Lease-upSIOUX FALLS, SOUTH DAKOTA

ABOVE MARKET21%

CHALLENGE:Construction and lease-up of a new luxury product at premium rates through adverseseasonal conditions.

RESULTS:Leasing momentum and velocity were maintained and property stabilization achieved in recordtime with no concessions.

OCCUPANCY

THE NUMBERSAverage Lease Per Month 22

Average Per Occupied Unit $1052

Average New Lease $1061

Average Market Rental Rate $876

0%

20%

40%

60%

80%

100%

Aug Sep Oct Nov Dec Jan Feb Mar Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec


CHALLENGE:Older community undergoing renovation to compete with new product. Vacancy turn-over time islengthened, maintaining occupancy and income while introducing upgraded units are client's goals.

RESULTS:Community upgrades achieved with minor occupancy disruption and per unit pricing escalation inconjunction with client's goals.

RENT PER OCCUPIED UNIT

ARLINGTON, TEXAS248 Units | Built 1970 Competing with New Product | Asset Renovation

THE NUMBERSAverage Rent Per Occupied Unit Gain $69

Average Occupancy 91%

Average Renewal $57

Average Renewal Conversion Rate 70%

OCCUPANCY

Jan Feb Mar Apr May Jun Jul Aug Jun Jul AugSep Oct Nov Dec Jan Feb Mar Apr May Oct Nov DecSep

Jan Feb Mar Apr May Jun Jul Aug Jun Jul AugSep Oct Nov Dec Jan Feb Mar Apr May Oct Nov DecSep

80%

85%

90%

95%

100%

REVENUE

$125k

$150k

$175k

$200k

$225k

10.3%YOY REVENUE INCREASE


$780

$808

$836

$864

$892

$920

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


$780

$808

$836

$864

$892

$920

Aug Sep Oct Nov Dec Jan Feb Mar Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec

RENT PER OCCUPIED UNIT

ARLINGTON, TEXAS228 Units | Built 1974 Competing with New Product | Asset RenovationSold April 2019

Average Rent Per Occupied Unit Gain $101

Average Occupancy 94%

Average Renewal $54

Average Renewal Conversion Rate 60%

THE NUMBERS

OCCUPANCY

Aug Sep Oct Nov Dec Jan Feb Mar Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec80%

85%

90%

95%

100%

REVENUE

Aug Sep Oct Nov Dec Jan Feb Mar Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec160k

170k

180k

190k

200k


YOY REVENUE INCREASE14%

CHALLENGE:Older community undergoing renovation to compete with new product. Vacancy turn-over time is lengthened, maintaining occupancy and income while introducing upgraded units are client's goals.

RESULTS:Community upgrades achieved with minor occupancy disruption and per unit pricing escalation inconjunction with client's goals.


THE NUMBERS

REVENUE INCREASE13%

42 Units | Built 2007 | Niche Market - 7 months | Asset StabilizationIntermittent Short Term Availability

DELRAY BEACH, FLORIDA

Occupancy Stabilization +11%

Average Renewal Conversion Rate 63.3%

Average Community Rate $2,547

Average Market Rental Rate $2,000

REVENUE STABILIZATION

CHALLENGE:Small, luxury property in niche market competes with extended stay hotel and condominium rentals.

RESULTS:Asset's occupancy, renewal, and revenue were stabilized beyond area market rates.

$0

$20000

$40000

$60000

$80000

$100000

$120000

Sep Oct Nov Dec Jan Feb Mar

MARKET AREA TREND+$144 PER UNIT / +7.8%* 9 Zip Codes / 10 Mile Radius


REVENUE OPTIMIZATION &ASSET MANAGEMENT

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