Which of the following is a key result of effective market research?

Improved understanding of pricing strategies is a key result of effective market research because it allows property managers to analyze competitive rental rates, occupancy levels, and tenant preferences within the market. Through comprehensive market analysis, property managers can identify trends and demand fluctuations that influence pricing. This understanding enables them to set rental rates that are not only competitive but also aligned with the value provided to tenants, ultimately enhancing the profitability of the property.

In contrast, options such as increased misunderstanding of tenant needs and reduced communication with tenants would indicate poor market research or management practices, which could negatively impact tenant satisfaction and retention. Higher vacancy rates would typically result from ineffective market research that fails to align with tenant expectations or market demand, leading to unsuccessful leasing strategies. Effective market research aims to mitigate these issues by delivering reliable insights into tenant behavior and preferences, ensuring that property management decisions are data-driven and strategically sound.