What’s the best way to generate ancillary income at a multifamily community? The tried-and-true methods come to mind, such as telecommunications and submetering. But the buck doesn’t stop there.
“Some of the more traditional avenues [to generate income] include: application fees, late fees, one-time pet fees, monthly pet fees and non-refundable move-in fees,” says Mike Brewer, vice president of operations at M Brewer Group.
“I think the chief reason why these are effective is that they are largely universal across the nation with both small and large operators,” adds Brewer. “The amounts may vary, but the practice of charging is commonplace in the eyes of the renter.”
Scott Rawley, national account manager at Multifamily Ancillary Group, agrees that property managers should look beyond the basics. “When most people in the multifamily industry think about ancillary income, they really only consider the site-generated items,” he says. “These types of services work because they are measurable and able to be tracked. That being said, a successful program is not one that just gathers the most dollars. A part of a truly good ancillary services program should also be cost reduction.”