Updater

By Deena Cook

Published Jun 28, 2024

Updated Jun 28, 2024

Maximizing revenue in the multifamily housing industry isn’t just about leasing units; it’s also about finding creative ways to generate additional income through ancillary services. Move-ins present a unique opportunity to introduce new residents to services and products that can enhance their living experience while boosting your bottom line. Here are six effective strategies to generate ancillary revenue from move-ins.

1. Offer premium move-in packages

Providing premium move-in packages can enhance the move-in experience for residents while generating revenue. These packages can include a range of services and products designed to make the transition smoother and more enjoyable. Consider offering tiered packages to cater to different budgets and needs.

Examples of premium move-in packages:

• Basic package: Includes essential items like cleaning supplies, a welcome mat, and a set of basic kitchenware.
• Enhanced package: Adds additional amenities such as a set of luxury towels, a welcome gift basket with snacks and beverages, and a guide to local services and attractions.
• Ultimate Package: Includes all items from the enhanced package plus premium services such as professional cleaning before move-in, furniture assembly, and a personalized welcome event with community staff.

By offering these packages at different price points, you can cater to a wider range of residents and encourage them to opt for added convenience and luxury, generating additional revenue for your community.

2. Partner with local businesses

Forming partnerships with local businesses is a win-win for your community and the businesses involved. By offering residents discounts and exclusive deals with nearby establishments, you can enhance their living experience while earning a commission or referral fee from the businesses.

Potential partnerships:

• Grocery stores and restaurants: Offer discounts on first orders or special deals for new residents.
• Gyms and fitness centers: Provide discounted memberships or free trial periods.
• Home services: Partner with local cleaning services, handyman services, or moving companies to offer discounted rates for new residents.
• Entertainment and leisure: Arrange for discounted tickets or memberships to local theaters, museums, or recreational facilities.

Promote these partnerships through welcome packets, community newsletters, and digital platforms to ensure residents are aware of the exclusive offers available to them. These partnerships not only generate ancillary revenue but also help integrate new residents into the local community.

3. Introduce subscription services

By introducing subscription-based services that cater to everyday needs and lifestyle preferences, you can create a seamless living experience that encourages residents to stay longer.

Types of subscription services:

• Laundry and dry cleaning: Offer a weekly or monthly subscription for laundry and dry cleaning services, providing pickup and delivery directly to residents’ doors.
• Housekeeping services: Provide options for regular cleaning services, from basic tidying, to deep cleaning, available on a subscription basis.
• Package handling: Implement a package concierge service that ensures residents’ deliveries are securely received and delivered to their units.
• Pet services: Offer dog walking, pet sitting, and grooming services through a subscription plan for pet-owning residents.

Market these services as part of the move-in process to ensure new residents are aware of the available options from day one. Subscription services not only enhance the resident experience but also foster a sense of community and convenience.

4. Leverage technology for convenience services

Utilizing technology to offer convenience services can streamline the move-in process and generate additional revenue. By integrating smart home technologies and other digital solutions, you can provide residents with modern amenities that enhance their living experience.

Examples of technology-driven services:

• Smart home upgrades: Offer smart thermostats, lighting, and security systems as optional upgrades for new residents. Charge an installation fee and a monthly service fee for these enhancements.
• Digital concierge services: Provide a digital platform where residents can book services like housekeeping, maintenance requests, and community events.
• Resident apps: Develop a mobile app that offers access to community news, events, and exclusive deals with local businesses. Include in-app purchases for premium features or services.
• Online rent payment and maintenance requests: Streamline administrative tasks by offering online rent payment and maintenance request systems. Offer premium features such as auto-payment and priority service for a small fee.

Promote these technology-driven services during the move-in process to highlight the modern conveniences available to residents. By leveraging technology, you can enhance the resident experience while generating additional revenue streams.

5. Implement energy-saving measures 

Energy-saving measures, such as installing solar panels, energy-efficient lighting and appliances, or implementing a smart thermostat system can create additional revenue for your communities in the following ways:

• Energy upgrade savings: According to a study by the US Department of Energy, energy-efficient upgrades in multifamily buildings can reduce energy use by up to 30%, resulting in cost savings of up to $0.22 per square foot per year on energy bills. The study found that the average annual cost savings for a community was approximately $5600. Increased resident satisfaction: Residents appreciate the savings on their utility bills that result from energy-saving measures, which can increase satisfaction and result in higher retention.
• Going solar: Installing solar panels can reduce your community’s electricity costs by generating your own electricity, and you can sell any unused power back to the utility company, generating additional revenue.
• Higher property value: According to the National Multifamily Housing Council (NMHC) 2021 Resident Preferences Report, energy-efficient features were ranked as the 2nd most important amenity among renters. This suggests that communities with energy-efficient features are more attractive to potential residents, and may have a competitive advantage in the market.

6. Offer short-term rentals 

Short-term rentals are an excellent way to increase your revenue opportunities quickly. By renting out vacant units, or by converting existing units into short-term rentals, your company can generate additional revenue and increase occupancy rates. This is particularly beneficial for those communities located in areas with a high demand for short-term rentals, like urban city centers, tourist locations, and places with great views. Consider transforming a vacant unit into a guest suite and offering it as an amenity to your residents. This provides a convenient option for residents who have visitors from out of town but do not have extra space to accommodate them. Alternatively, when the suite is not occupied by residents, it can be listed on popular short-term rental sites like Airbnb or Vrbo, increasing the potential for revenue generation. Additionally, the guest suite can be used as a model home when vacant. To incentivize lease renewals, consider offering complimentary stays in the guest suite to your valued residents.

The end game

These days, creativity and innovative ideas are everything in multifamily — for both residents and agents. By utilizing our tips, you can create additional income streams that enhance the resident experience and contribute to the financial success of your community. Embrace these strategies to maximize your revenue potential and create a welcoming environment that residents will be excited to call home.

Deena Cook

Deena grew up in New Jersey, but has lived in various places around the world to satisfy a love of travel and adventure. She holds a degree in Journalism, and loves the freedom that comes from being able to write from wherever she may be living.