4 Essential KPI Types for Smarter Multifamily Rent Pricing

Multifamily professionals typically use leasing KPIs to track leasing performance – but these same KPIs can also be used to track pricing efficacy. Beyond tracking occupancy or leasing velocity, your KPIs can highlight pricing misalignments you might never have expected. 

Leasing velocity metrics may reveal a hidden pricing issue. Retention rates may offer insights about your concession strategy. And small realignments across floorplans, amenities, or renewal offers can meaningfully boost NOI.

Here are four categories of KPIs that every asset manager and multifamily operator should use to inform property pricing.

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1. Vacancy Patterns by Floorplan and Amenity

Vacancy is often the first signal that your pricing may be working against you. When you compare your occupancy trends by floorplan type and amenity class, you can uncover more specific and actionable data that can inform your pricing strategy. Ask yourself:

• Which unit types sit vacant the longest?
• Are your top-floor units staying empty while lower floors lease quickly?
• Which units lease almost instantly? Could those rents be pushed higher?

Patterns in vacancy reveal mismatches between what you’re charging and what the market is accepting. Sometimes a small tweak – like, say, adjusting your top-floor amenity premium – is all it takes to decrease vacant days and bring in rental income on a unit sooner.  

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2. Lease-Conversion Metrics

Lead volume is a piece of the puzzle, but it’s the conversion data that tells the whole story. If you’re seeing a lot of interest in a floorplan that rarely tours or leases, you have a pricing red flag. Check your leasing-enablement metrics to find any pricing misalignments.

• Tour ratio. Are two-bed units getting lots of leads but few tours? Maybe the price is too high.
• Drop-off rate. Are certain units generating no response to follow-up? Track by floorplan and unit type to spot leasing-velocity trends and pricing inefficiencies.
• Conversion rate. Are some unit types converting more than others? Low conversion rates indicate friction, while high conversion rates suggest room to push rents.

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3. Retention Rates and Renewal Pricing

Rental price optimization goes beyond new leases. Retention tells you if your pricing strategy is sustainable. Watch for the “concession trap”: residents who leave after one lease term – once the concession burns off.

• Are tenants leaving after one term only to move to a competitor property down the street?
• How do renewal rates vary by unit type and floorplan?
• Are your renewal rates generally being accepted or are they spiking availability for specific units?

Using historical retention and renewal data, you can find the sweet spot – the price that optimizes revenue without undermining loyalty. Retention is a revenue strategy in itself. Every renewal is an opportunity to preserve occupancy while achieving NOI growth.

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4. Days-on-Market After Price Adjustments

Track how quickly units lease after each rent change. This KPI tests pricing efficacy in real time, proving out pricing adjustments as units are taken off the market.

• Does lowering rent meaningfully reduce days on market?
• Does a small increase slow leasing too much?

By analyzing these trends, you can identify the optimal rate for each unit type and avoid reflexive price drops that cut into NOI. This is how data keeps your pricing strategy grounded in reality.

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Conclusion on Essential KPIs for Smarter Multifamily Rent Pricing

Indicators of pricing pitfalls hide in the datasets and KPIs within your portfolio’s leasing pipeline. Vacancy, leasing conversion, retention, and days-on-market come together to form a clear picture of pricing performance.

When you examine each step of the leasing and retention process through the lens of pricing, you’ll be better empowered with a smarter revenue strategy.

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