As multifamily becomes more competitive and data practices more heavily scrutinized, one thing is clear: private data, often plagued by outdated information, inaccuracies, and compliance risks, is no longer keeping up with the dynamic needs of the industry. Rather than put your company at risk, consider making the switch to public data, a more accurate, reliable, and compliant alternative to private data. 

This was the key message of our recent webinar on transitioning from private to public data, where experts from ApartmentIQ walked through the compelling reasons and actionable steps for making the switch. 

If you missed the live session, this article will recap the key insights and step-by-step guide covered in the webinar. Watch the on-demand recording below for all the details.

Key Issues with Relying on Private Data

Private data has been the standard in multifamily for many years now, but this reliance can lead to several critical issues that undermine effective decision-making:

• Data inaccuracy from manual entry: Manual data entries can introduce human error, from miskeyed inputs to relying on outdated survey responses. 

• Outdated information and static data: Private data updates occur weekly or monthly at best, making it impossible to respond in real-time to rapidly changing market conditions. 

• Compliance and legal risks: As data transparency regulations tighten, using private data can expose companies to legal challenges due to limited transparency and data sharing issues. See recent rulings in San Francisco and Philadelphia—two cities cracking down on the use of rent-setting algorithmic software.

• Inefficient comp set management: Traditional “set and forget” approaches to comp sets mean they often go years without updates, leading to a reactive rather than proactive stance on market changes.

• Lack of unified data across departments: Inconsistent definitions and data sources lead to fragmented strategies between teams, complicating efforts to achieve aligned business goals.

Sound familiar? These are key issues many multifamily companies are facing today, ultimately leading to hindered growth, compliance issues, and disconnects across departments. The solution lies in transitioning to public data.

Making the Shift to Public Data: Why Now?

Public data, sourced from credible property websites, is becoming the new standard in the multifamily industry. Unlike private data, public data is continuously updated, ensuring access to the latest market insights, which is crucial in today’s fast-paced environment. Another key advantage of public data is its transparency. Sourced from verified property management websites, it provides clear insights into critical metrics like rental rates, occupancy, and pricing trends, removing the guesswork that often accompanies private data. Public data also offers real-time updates, helping businesses stay agile and make timely adjustments. With daily refreshes, teams can respond quickly to market changes, ensuring strategies remain relevant and competitive.

Additionally, public data reduces legal risks by providing transparent, easily accessible information. This helps teams focus on strategic decisions without the worry of compliance issues. Finally, by using the same data as renters and other market players, public data ensures your strategies are aligned with current market trends, keeping your approach in tune with customer expectations.

Embracing Public Data: A Step-by-Step Guide

To successfully implement public data into your strategy, it’s essential to align internal teams, evaluate existing practices, and set clear objectives. Here’s a step-by-step guide compiled by ApartmentIQ experts to help you navigate the process and maximize the benefits of public data:

1. Build cross-departmental support

Engage revenue management, marketing, operations, and asset management teams early to align on the transition. Ensure that the transition’s goals, benefits, and compliance advantages are communicated from top management down to on-site teams to build cross-departmental support. 

2. Audit and evaluate current data practices

Take stock of your current data collection and analysis processes. Look for areas where inaccuracies or outdated data are creating risks and identify the metrics you rely on for pricing and market analysis.

3. Define clear objectives and metrics

Establish measurable goals, such as rent growth, occupancy rates, or lease application volume, and map these objectives to public data metrics for consistent benchmarking.

4. Integrate public data into existing systems

Ensure public data is compatible with your business intelligence (BI) tools and workflows. Set up regular reporting intervals for consistent visibility and data-backed decision-making. In addition, align cross-departmental data practices to avoid fragmentation and ensure a single source of truth.

5. Embrace benchmarking and trend analysis

Use public data for ongoing benchmarking to stay informed on competitive trends. Regularly updating these benchmarks will ensure you can respond to shifts in the market with agility.

A Comparison: Private vs. Public Data

To provide a clearer picture, here’s a direct comparison of the key differences between private and public data, illustrating why so many companies are making the switch:

Ready to Make the Switch?

Transitioning to public data opens up a wealth of advantages in terms of accuracy, compliance, and real-time insights that keep you agile in today’s rapidly evolving multifamily industry. For those ready to learn more about the benefits and process of transitioning to public data, we invite you to watch the full webinar recording.

There is no better time than now to start mastering the use of public data to enhance your market analysis, optimize your strategies, and future-proof your business. If you’re ready to get started, schedule a demo of ApartmentIQ today.