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I think you’re missing the point. Let me try this: there’s a tipping point where you have 50% occupancy and charge $x0,000 for 500 sq ft and make just as much m

I think you’re missing the point. Let me try this: there’s a tipping point where you have 50% occupancy and charge $x0,000 for 500 sq ft and make just as much money as you would at 100% occupancy with a charge of $x000. The difference between these two is in the latter scenario, some people have no place to live because they can’t afford the $x0,000. The owner corporation doesn’t care, they make just as much money either way.

WalterBright 4y ago
Airlines discount tickets at the last minute. That's because flying an empty seat around doesn't make any money. Magazines sell ad space at a steep discount the day before it goes to press. Same reason. Stores have clearance sales. Again, same reason. And so on. No landlord in his right mind would leave half a building vacant if he can get a paying tenant in.
- richbell 4y ago
  > Airlines discount tickets at the last minute. That's because flying an empty seat around doesn't make any money. > Magazines sell ad space at a steep discount the day before it goes to press. Same reason. > Stores have clearance sales. Again, same reason. You did not acknowledge or address KerrAvon's point at all. > And so on. No landlord in his right mind would leave half a building vacant if he can get a paying tenant in. Of course they would, and both KerrAvon and TFA explain why: ) The company had been seeking occupancy levels of 97% or 98% in markets where it was a leader, Winn said. But when it began using YieldStar, managers saw that raising rents and leaving some apartments vacant made more money. ) “Initially, it was very hard for executives to accept that they could operate at 94% or 96% and achieve a higher NOI by increasing rents,” Winn said on the call, referring to net operating income. The company “began utilizing RealPage to operate at 95%, while seeing revenue increases of 3% to 4%.” Plenty of companies avoid large sales or clearances as a policy because it damages their ability to sell at inflated rates.
  - WalterBright 4y ago
    > You did not acknowledge or address KerrAvon's point at all. Sure I did. Leaving 50% vacant is leaving a lot of money on the table.
    - richbell 4y ago

WalterBright 4y ago

Airlines discount tickets at the last minute. That's because flying an empty seat around doesn't make any money. Magazines sell ad space at a steep discount the day before it goes to press. Same reason. Stores have clearance sales. Again, same reason. And so on. No landlord in his right mind would leave half a building vacant if he can get a paying tenant in.

richbell 4y ago
> Airlines discount tickets at the last minute. That's because flying an empty seat around doesn't make any money. > Magazines sell ad space at a steep discount the day before it goes to press. Same reason. > Stores have clearance sales. Again, same reason. You did not acknowledge or address KerrAvon's point at all. > And so on. No landlord in his right mind would leave half a building vacant if he can get a paying tenant in. Of course they would, and both KerrAvon and TFA explain why: ) The company had been seeking occupancy levels of 97% or 98% in markets where it was a leader, Winn said. But when it began using YieldStar, managers saw that raising rents and leaving some apartments vacant made more money. ) “Initially, it was very hard for executives to accept that they could operate at 94% or 96% and achieve a higher NOI by increasing rents,” Winn said on the call, referring to net operating income. The company “began utilizing RealPage to operate at 95%, while seeing revenue increases of 3% to 4%.” Plenty of companies avoid large sales or clearances as a policy because it damages their ability to sell at inflated rates.
- WalterBright 4y ago
  > You did not acknowledge or address KerrAvon's point at all. Sure I did. Leaving 50% vacant is leaving a lot of money on the table.
  - richbell 4y ago