If you haven’t implemented a resident benefit package already, you might have heard the term being discussed more often as more companies are starting to implement them into their leases and business models.
As they grow in popularity, they’re becoming a standard in running and growing a property management company. It’s something that large multifamily companies (like GreyStar) have been implementing for years because they know that residents are willing to pay for higher levels of service and various added amenities.
Now, many in the single family space are offering flat fees or lower rates to bring more value through ancillary services in their resident benefits package. This increases revenue per unit for the property manager and increases the overall living experience for the resident.
In a time when residents are spending more and more time at home, an enhanced living experience is in high demand.
What is a Resident Benefits Package?
A Residents Benefit Package is an additional charge to the tenant included on new leases that will give the resident added services. These added services vary from company to company, but they can include things like:
- Rental Insurance
- Emergency maintenance lines
- Filter delivery services
- Online portal access & mobile app access
- A virtual concierge for resident requests
- Smart home add ons and features
- Credit Reporting
- And more…
What is the typical monthly fee & how much can I increase revenue per unit?
This is something that can also vary company to company depending on the market, property class type, and amount of additional amenities included. Though, most resident benefit packages do not exceed a $50 monthly fee added to the lease at signing.
To learn more about the different types of services property managers typically add in their resident benefit packages, we recommend tuning into the below podcasts packed with great info:
25 Income Streams for Your PM Business with Marc Cunningham
Increasing RPU with Air Filter Delivery Services with Second Nature CEO, Thad Tarkington
How To Reach 25% Profitability and Beyond in 2021 with PM Profit Coach, Daniel Craig
How Does Implementation Work?
Most Property Management companies who have rolled out a resident benefits package send out a notice to current residents noting the details of the added services and fees. They note that it will be added to their lease upon renewal or within a specific time frame (30, 60, or 90 days) depending on your state laws for changes in lease agreements. At Latchel, we typically offer it as an option for current residents with the ability to opt-out during the current lease cycle before it becomes effective in lease renewal.
For all new residents, the benefits package is included in the lease at signing.
Most Property Management companies have a web page dedicated to the offerings of their specific resident benefits package. You can view an example here.
How can Property Managers also eliminate costs with a Residents Benefit Package?
At Latchel, we’ve packaged our typical maintenance coordination services into a type of resident benefits package that our customers are using to eliminate their on-call maintenance costs, and generate additional monthly revenue through profit sharing.