Multifamily professionals continuously seek opportunities to maximize the performance of their assets. A strategic approach to achieving this involves analyzing their positioning within the comp landscape using direct comparisons. However, generating direct comparisons can be challenging, especially when comparing properties with substantial differences; this is where Radix’s Perspectives tool comes in.
How Radix’s Perspectives Tool Facilitates Accurate Direct Comparisons
One of the major pain points for multifamily professionals is the need for tools that make it easy to identify opportunities and trends through apples-to-apples comparisons. Radix’s Perspective tool allows users to create a perspective that considers their property’s unique characteristics and compares it to other properties with the same features within their compset. By creating a “perspective,” users can exclude different units or properties, allowing a more accurate comparison between their property and their compset.
Analyzing Potential Scenarios Using Radix’s Perspective Tool
Suppose you’re renovating your units and planning to implement multiple levels of renovations. Before starting the project, you want to isolate your comps to units of similar quality to your anticipated renovations to determine the ROI of completing the project. With Radix’s Perspectives tool, creating a “renovated vs. unrenovated” perspective is easy. By doing so, you can compare the performance of each level of renovation independently and gain insight into which type of renovation yields the best results. This can help you make data-driven decisions and optimize your renovation strategy to achieve the best return on investment.
Another example is that users can use the “Like-Kind Unit Types” perspective. When a property lacks a specific unit type, such as three-bedroom units, that several of their comps possess, comparing the performances can be challenging. In this case, the property could apply the “Like-Kind Unit Types” perspective to exclude these units from the comparison. This approach ensures that only comparable unit types are included in the comp analysis, resulting in a more accurate apples-to-apples comparison.
Furthermore, to ensure an accurate comparison, a property with affordable units may need to exclude them from the comp set when their comps do not offer such units. In this case, the property could apply an “exclude affordable units” perspective, which excludes these floor plans from the analysis. By providing the flexibility to create custom perspectives, Radix’s Perspectives tool avoids potential distortions in the data.
Power of Data-Driven Decisions in Multifamily
Radix’s Perspectives tool solves multifamily professionals’ frustration when creating direct comparisons to understand their placement amongst their comps. With the ability to exclude dissimilar unit types for floorplans, this tool provides a more accurate comparison of performance between properties, allowing multifamily professionals to make data-driven decisions that lead to better results. As the multifamily industry evolves, tools like Radix’s Perspectives will be crucial for maximizing asset performance and driving success.
For more information on our Perspective tool, click this link: https://brochures.radix.com/view/406198620/
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