As a property manager, offering a residents benefit package is an excellent way to increase your company’s revenue while building positive relationships with tenants.
A residents benefit package is a package of services and amenities offered by a property management company that benefits the residents. The additional charge to the resident is normally included in the lease.
More and more property management companies are incorporating this into their business plan, and you should consider doing the same!
The residents benefit package doesn’t have to be the same for everyone. The great thing about them is that you can curate different offerings based on the needs of each resident.
When you offer residents services and amenities that are useful and beneficial to them, they will be willing to pay for them.
So, we recommend you take advantage of this opportunity to grow your property management company and its revenue.
In this post, we are going over everything you need to know about a resident benefit package, such as its benefits, services to include and mistakes to avoid.
What is a Residents Benefit Package?
A residents benefit package is a collection of extra services that you could provide for the residents of the properties that you manage for an additional charge.
These extra services and their fees would be included in the lease agreement.
Offering a residents benefit package will allow you to increase your revenue per unit.
Why Should you Offer a Residents Benefit Package?
There are many benefits that come with offering a residents benefit package.
Here are the 4 main benefits:
1. Increase your Company’s Revenue
By offering a residents benefit package, your company can generate additional income with the additional fees charged to your tenants.
Even if you decide to hire outside services as a part of the benefit package, you can still make a profit by charging mark up fees to the tenants.
2. Decrease your Workload
There are certain benefits that you can offer tenants that will reduce your workload greatly.
An example of this would be A/C filter delivery services. Offering your tenants filter delivery services will reduce the amount of maintenance issues that occur in the future.
Additionally, a service like A/C filter delivery will make the residents’ lives easier by having the filters delivered straight to their door.
This is just one example, but there are other benefits you can offer that would allow you to reduce your number of working hours.
3. Lower Turnover and Vacancy Rates
A residents benefit package is useful for your tenants. So naturally, offering this will mean an increase in tenant retention!
By offering services to tenants that make their lives easier, they are more likely to enjoy their experience renting from your company. Which means you can significantly reduce property vacancies.
If you choose services that tenants find valuable, then they are more likely to stay longer!
Additionally, your residents benefit package can be an excellent tool when marketing a vacant property. It will be sure to attract a wide pool of prospective residents.
What to Offer in Your Residents Benefit Package
Now that you understand what a residents benefit package is and its benefits, we will go over what your property management company should offer.
When it comes to deciding what services to offer in your residents benefit package, it’s important to consider what will be most valuable to your tenants and what will be the most profitable for you!
Try looking at packages offered by other property management companies that are the same size as yours, and manage a similar number of properties.
Additionally, you can try polling your current residents to see what benefits they would find useful enough to pay extra for.
Once you have a list of services that you are considering, run a cost-benefit analysis to determine which of these services will generate the most revenue for your company.
Here are some of the services that you could consider offering your residents:
1. Renters Insurance
Including renters insurance in your benefit package allows your tenants to be covered for damage and liability.
Not only will this give your residents peace of mind, but as a property manager, you will avoid responsibility for any damage caused by uninsured tenants.
2. 24/7 Maintenance Line
Offer your residents access to a 24/7 portal where they can make maintenance requests at any time from any location.
3. HVAC Maintenance and Filter Delivery
Offer your tenants a service where they can have their HVAC filters delivered and changed regularly.
This will also help you ensure that the unit is being well maintained.
4. Refrigerator Filter Delivery
This service is similar to HVAC filter delivery, and can be equally as beneficial to both you and your tenant.
5. Virtual Concierge
Offering a virtual concierge to your tenants can include many benefits, including keyless entry to the property and reservations for amenities that are featured on the property like a gym or a pool.
Other Ideas for Services:
Here are some other services you may choose to offer:
- Access to smart home add ons and features
- Credit reporting
- Utility set up
- Flexible online payments
Implementing your Residents Benefit Package
Whether you are implementing a brand new residents benefit package or upgrading one that you already have, communication is key.
Your current residents must be kept up to date in all stages of implementation.
Keep them in the loop regarding which services you have chosen. Let them know what the fee will be, when the services will be available, and whether or not the fee will be mandatory.
For new residents, be sure to clearly explain what the package is, as well as the cost of the fee.
Common Mistakes to Avoid
When offering a residents benefit package, there are some common mistakes that you want to avoid, such as the following:
- Pricing: Regardless of which services you are offering, residents will not want to pay too much for a benefit package, so it is important to keep the pricing reasonable.
- Choosing the wrong services: If your tenants won’t find value in the services you are offering, they won’t want to pay extra for them. That’s why it is imperative to discuss these services with your tenants prior to implementing them.
- Poor communication: Constant communication with your tenants regarding the implementation of new services and their fees is crucial. This will ensure that they are not caught off guard.
A residents benefit package can help your property management generate extra revenue, while keeping tenants happy.
When deciding on which services to offer, be sure to communicate with your residents to see which ones they will appreciate most.
If you’re looking to grow your property management company, adding on a residents benefit package can definitely help increase your revenue per unit. If you’re also looking to add on new properties to manage reach out to Upkeep Media. We specialize in helping property management companies grow.