Many multifamily property management agencies have felt the financial pinch of the pandemic. Consider the facts: as some tenants struggled, property firm waived late fees and kept renewals at the same rate or with very nominal increases; to reduce personal uncertainty, many residents opted to stay put, and the opportunity to lease units at typically higher rates diminished.
With amenities closed or reduced, many traditional revenue streams have been impacted. However, here are some of the ancillary income methods that property companies will utilize in 2021.
The pandemic has seen a rise in animal adoption rates. From pet deposits (where allowed by law) to pet amenities to concierge pet services, these are among the ways operators can bolster ancillary revenue. Amenities like on-site dog runs and pet washing stations are gaining in popularity, and can be a differentiator for the property brand.
Whether it’s dog walking services or the ability to have on-site pet sitting or grooming, these à la carte services are immensely appealing to pet owners. Rather than a monthly fee, pet owners can opt in to these elective services whenever they are needed.
HVAC and Maintenance
Maintenance is typically one of the largest revenue generators behind management and leasing fees. Property management groups need to take full advantage of it. HVAC maintenance, for instance, can reap ancillary income. Property agencies can charge per door for HVAC maintenance to the owner. Meanwhile, in-house teams can easily replace filters and can often do smaller maintenance jobs faster, better and cheaper than a third-party vendor.
As well, trusting tenants to keep up with filter replacements typically does not work. Instead, enroll tenants in a monthly filter program during the summer months.
Cleaning & Sanitation
In addition to providing building cleaning and sanitation for building owners, property management firms have seen an uptick in residents looking for housekeeping services, and valet garbage removal. By monetizing a property’s garbage collection, you can increase net operating income. You pay the valet company a fixed price per unit and charge residents a slightly higher fee for the door-side garbage removal service. Not only does this create extra cash flow it can also have a direct impact on reducing maintenance costs.
Renter’s insurance benefits both the landlord and the property agency. Property professionals should require all tenants to have it as a term in the lease agreement. It helps protect your renter, reduces costly lawsuits and can even help stabilize your own insurance. Teaming up with an insurance provider not only protects your asset but also makes you a few bucks.
Property Vista has teamed up with TenantSure to provide a built-in renters insurance program that is easy to join and provides broad coverage at a great price. It’s a win-win deal for renters and landlords.
Landscaping & Garden Services
Ensuring curb appeal has long been a value-added service for property firms to provide to owners. And right now, amidst the Covid-19 pandemic, the draw of garden apartments and landscaped properties has intensified as renters want green spaces.
Incidentally, the pandemic has seen a huge increase in people going green indoors, and getting into growing plants and herbs. Some property management firms are considering offering balcony container gardens services to tenants from May to September.
Smart Locker Storage
As part of a concierge bundle, the appeal of a smart storage space is on the rise. We’re in the era of online shopping as renters continue to “nest” and beautify their personal spaces. Many property firms are investing in smart lockers that remove the need for property management to handle a resident's packages and allows the tenant to pick up their package 24/7. The tenant simply receives a digital message and an unlock code on their smartphone.
Bike ridership has increased over the pandemic, and savvy PM firms are clearing out unused spaces and renting out bike racks and bike storage areas.
Safe Co-Working Spaces
Apartment operators can transform unused spaces into attractive co-working spaces, with fast internet and some private offices. With apartment fatigue setting in for stay-at-home workers, property firms can sell co-working memberships, emphasizing convenience, fast internet and safety procedures like thorough cleaning.
How Property Vista Helps Drive Revenues
With Property Vista, it’s a snap to enforce late fees, ensure all tenants have required insurance and advertise concierge services to your residents through a tenant portal. Plus, you have everything you need to streamline and automate your business. See pricing and get a demo.