November 05, 2015
Your Buildings as Profit Centres
Most property managers would be satisfied to have all their units full and each resident paying rent on time. But if you view rent as the only revenue you can generate through your property, you’re missing a big opportunity.
By investing in your building and expanding your service offerings, you can transform your property into a profit centre that will significantly increase your bottom line. Consider the following additions:
Laundry facilities. If you don’t already offer on-site laundry services, you should. Providing renters with that convenience is one of the surest ways to increase your revenue stream. Everyone needs to do laundry, and no one likes lugging bags of dirty garments to the laundromat. If you install pay-per-use laundry facilities on your property, residents will use them. You can also set up snack machines in the laundry room for hungry tenants doing multiple loads.
In-house handiwork. You’ve already got a team of maintenance techs on staff for repairs. Why not let your residents “lease” your techs as required to help with minor household work (e.g. mounting TV screens, setting up electronics, moving furniture)? You’ll get extra money and you can enjoy the peace of mind of knowing that a capable professional is working on your units.
Meeting room rentals. If your property has a good meeting facility, odds are good that it goes unused most of the time. Put it to better use; rent it out to residents and local organizations in need of a gathering place. To figure out what your rental price should be, look at what comparable spaces in your area charge.
Storage space. Speaking of underused spaces, most buildings have the capacity to offer additional storage to residents. Apartment units are notoriously tight on storage space. Many renters would happily pay extra to find a place for the possessions they value but don’t currently use.
Main-floor convenience store and café. Never underestimate the need for an onsite convenience store. Whether it’s a late-night cough syrup run during cold season, or a mad scramble for a missing ingredient discovered in the middle of baking, renters frequently find themselves looking for a quick re-supply. Having a shop on the property would be very popular. While you’re at it, consider opening a café on the ground floor. It will provide a convenient spot for residents to get their coffee fix, and bring in extra cash when guests visit.
Ad space: Windows, exterior walls, parking lots—you name it, someone will probably want to put an ad on it. Building wraps have the potential to generate well into five figures annually, especially if you land a multi-year contract with an agency. Consider enlisting the help of an outdoor advertising company to be sure you comply with zoning and permit regulations. On the local scale, you could partner with nearby businesses to advertise in your underground parking lot and offer your residents a discount on their services.
Renters insurance. In our last blog post, we covered how important it is for renters to have insurance. It protects your residents and it lowers the risk that you’ll have to cover the cost of negligent renters. But you stand to gain even more if you sell rental insurance, either directly through your property management firm, or by using a third-party insurance company. Not only will your building and residents be covered, but you’ll benefit from the additional income.
If You Build It (And Let Them Know About It), They Will Come
Implementing the additions and services listed above will go a long way toward making your property more profitable. But of course none of it does much good if your renters don’t know about everything you offer.
Take advantage of your property’s website, as well as social media, e-newsletters and bulletins, to let your residents know about the many perks to living in your building. After all, turning it into a profit centre is a win-win situation: you make more money, and your renters benefit from greater convenience, comfort and satisfaction.
To learn more about what you can do to expand your service offerings and increase your bottom line, sign up for your free account today or give us a call.