More apartments being rented with variable pricing

Large apartment management companies are using yield management software just like the airlines to offer variable pricing. That effectively means the price of a given apartment can change on a daily basis, according to what I read in The Wall Street Journal.

Airlines have long used dynamic demand pricing (aka yield management) to determine the price of seats on flights. With dynamic demand pricing, the airlines use historical analysis, behavioral patterns of buyers, the rate of bookings and even unemployment rates plus any other numbers of factors to control the price per seat. No two seats are sold for the same price.

Now the big property managers are taking a cue from the airlines. If you are a renter coming up for renewal, or you are looking for a place to rent, be aware that you could go to a rental complex on three different days and get three different rents on the same apartment each time! The value of that apartment changes as often as every 24 hours based on market conditions in the area and what's going on in that complex.

For example, let's say two tenants unexpectedly give notice that they're leaving. Suddenly, the property manager has more inventory than planned. The software will then trigger a special to fill up those vacancies.

The key point to know is that the larger the complex you're shopping, the more likely it is that the price is not the price and can continually change. So shop methodically and keep a list of quotes. Checking back several times for new quotes will make a big difference in what you have to pay for rent.

Know too that rents may be different even on the same floor plan, depending on location in a given complex. One strategy might be to look for a less desirable unit that meets your square footage needs to save money.