3 Sources of Additional Income For Your Apartment Complex
Are you looking for ways to increase revenue on your property? Here are three profit-generating resources that won’t require a lot of staffing, financial investment or management.
Source 1: Vending Machines
Vending Machines provide a convenient amenity for guests/residents and a simple source of income for property owners.
- Think Outside the Box: Traditionally when you think of vending machines, you think about soft drinks and candy. Think beyond refreshments to household and personal items your residents or guests might purchase such as trash bags, light bulbs, cleaning supplies, lip balm, shaving gel, and toothbrushes.
- Willing to Pay for Convenience: Even if there are nearby grocery stores, on-premise vending machines are always going to be more convenient. If a resident needs laundry stain remover, it’s easier to purchase it in a vending machine in the laundry room than it is to drive to a store. The key is to have machines located in high traffic areas where guests will require vending machine items. For example, vending machines with beverages would make sense near the gym or pool.
- Hands Off Management: With a vending machine, transactions are automated, so you don’t need to hire employees to run it. Vending machines have the possibility to be open 24/7 which means profit isn’t limited by time and machines are available any time guests or residents have a need. You don’t have to purchase the machines, because there are companies that will deliver and service the machines for you. You share the profits with the vending companies just by having the machines on your property.
Source 2: Laundry Room
Having an on-premise laundry room can add value and an additional revenue source to your property.
- Raise Vend Prices by Pennies: Don’t miss out on potential revenue by keeping prices in your laundry room the same over a long period of time. Raise vend prices over time in small increments (pennies) instead of quarter increments. The change will have a minimal effect on residents and increase profits for you.
- Loyalty Cards = Increase in Float: Utilizing a laundry loyalty card system encourages your residents to do laundry at your property. As residents add value to their laundry cards, your laundry room will build ‘float,’ or the amount of money added to accounts but not yet spent. As float increases, so will your profit!
- “Time is Money” When Collecting Coins: Collecting coins from each machine in your laundry room is time-consuming. If you are paying someone else to do it for you, that is still money out of your pocket. Implementing a card-based payment system gets rid of the need for coins, saves you time and allows you to easily track sales.
- Technology-Based Amenities: Smartphones play an integral role in our lives. If a guest or resident can use their cell phone to pay for laundry or remotely check machine availability and cycle completion, doing laundry at your property becomes convenient. Overall, this improves resident satisfaction and increases usage.
Source 3: Parking
Parking can be a luxury, especially in high-density areas where there is a parking shortage. Parking is a desired amenity and by charging for it at your property you can increase your bottom line.
- Premium Parking: People will pay more to park in a guaranteed spot, covered parking or in a garage. Consider giving residents a numbered parking space that is reserved for them. Charge more for covered or garage parking if you are not already doing so. If you don’t have covered parking, consider building carports over spaces.
- Prime Location: Charge guests and residents more for parking in coveted locations. Residents will pay more to be close to their unit. If your property has popular parking spots, think about advertising those spots as reserved parking that can be rented.
- Rent Out Extra Parking: Does your property have more parking spots than it needs for its residents? Allow residents to rent extra parking. If you are in an area next to professional buildings or event spaces, consider renting additional parking out to the public for a fee.
- Don’t Forget About Cyclists: Is your property in a bike-friendly area or do you have residents that are cycle commuters? Install traditional bike racks and rent them out for a fee. Create an indoor bike room on your property and charge for bike storage with additional security and protection from the weather.
By implementing these three sources of additional income at your property, you can increase revenue with virtually no extra effort or major staffing needs. After you take care of your upfront costs to make these changes, it’s pure profit moving forward!