New research shows that apartment communities’ online reputation is having an even greater impact on properties’ revenue, particularly in comparison to their market’s average performance.
Apartment owners and managers are facing more uncertainty and uncontrollable factors when planning, executing and operating their communities. Unstable materials costs; troubling overall economic conditions related to employment and inflation; and disruptive health issues are among things that are out of their hands.
One thing that they can control is their reputation—and by focusing on providing excellent resident experiences and supporting their staff, that reputation (and revenue) will likely improve.
The impact of online reputation was discussed at the J Turner Research Summit in Scottsdale, Ariz., with RealPage’s Senior Vice President of Data Science, Rich Hughes, taking a deep dive into the role J Turner Research’s ORA scores have on revenue, occupancy, rents and renewals.
He said that for conventional properties, a one point ORA score increase (on a 100-point scale) can yield 3.64 bps premium to market returns. For seniors housing, the boost is 4.15 bps and for affordable housing it is 3.22 bps.
Reputation Scores Reflect a Reward and a Promise
Each month, J Turner Research monitors the online ratings of more than 128,000 properties nationwide. Using a statistical model, these ORA scores serve as benchmarks to compare a company’s individual properties and…