The risk of financial loss in operating a property management company is especially high in today’s economic environment. Between rising mortgage rates, slowing rent growth, and surging inflation, asset value margins are exposed and owners are feeling the pinch.
Security deposits have historically been the go-to financial instrument to protect against such loss, yet they fundamentally cannot provide adequate protection, and deposit alternatives often only compound the problem. So, how can operators prevent significant economic loss and avoid leaving too much revenue on the table?
In our guide to unlocking the value of risk prediction, we challenge conventional thinking when it comes to mitigating multifamily risk, redefine the problem at hand, and offer a fresh perspective on how owners and operators can achieve significant NOI and asset value lift through better loss protection.
Without proper guardrails in place, increased risk exposure stunts revenue growth and prevents rental housing providers from achieving more valuable and efficient properties. In order to convert unpredictable loss into dependable net operating income and greater asset value, operators need to be able to apply the power of data and AI to predict risk and optimize loss performance.
Just as revenue management software has revolutionized the rental income side of the equation, risk prediction software is disrupting the loss side of the equation. Drawing on lessons from revenue management, we offer this guide to help the rental real estate industry re-think of the current risk mitigation landscape so owners and operators can unlock additional value from leveraging data-driven AI technology to predict risk and absorb more of the outstanding balances lost after move-out.
Now’s the time for the industry to reap the benefits of smarter loss protection—learn how risk prediction paves the way to optimized asset performance in the face of multifamily risk: