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#281: A 1% Increase in Vacancy Rate Reduces Cash Flow By 4-6%... Why Managing Revenue Is So Critical in Multifamily Operations
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In this episode, I break down one of the most overlooked levers in multifamily operations: revenue management. Through real-world math and clear examples, I explain and share how small changes in occupancy can create huge swings in cash flow—and why reducing turnover and maximizing renewals should be top priorities for any operator or asset manager.
This is a short but highly tactical solo episode packed with insights that can directly improve your property performance.
Join us as we dive into:
- Why a 1% change in vacancy can lead to a 4–6% drop in free cash flow
- The high cost of turnover—and how to reduce it
- Why most operating expenses are fixed, and what that means for NOI
- The tradeoff between pushing rents vs. preserving renewals
- A simple rule of thumb to apply when modeling vacancy and rent collection
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