We have a 50 unit apartment complex and a local Subscription based Roadside Assistance company wants to partner with us to provide our tenants with unlimited priority roadside assistance services. We already see 2-4 tow trucks and services trucks in our apartment complex every week so we definitely can see the value there for our tenants! The service would cost $17.99 per/month per/tenant and they would give us a $5 kick back from each subscription that we would add onto their monthly rent. We don’t want to nickel and dime our tenants, but we see the value and it brings in a little bit of extra income. I wanted to see what other owners think or if they offer services like this to their tenants and how they set them up?
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
2y
If I were a tenant, it wouldn't come to mind that I might need a tow service. So if I got up charged for something I don't think I would use on the daily, it would be a hard pass. Especially if the competition has less fees.
If I were a tenant, it wouldn't come to mind that I might need a tow service. So if I got up charged for something I don't think I would use on the daily, it would be a hard pass. Especially if the competition has less fees.
Litchfield, MN · Member since 2023 · 27 posts · 16 votes
2y
Personally, I see it as a value add. It used to be included on a lot of our auto insurance policies but many companies have gone away with it to keep costs down. This would offer an alternative and it can set you apart from other competing rentals.
Investor · Kansas City, MO · Member since 2020 · 400 posts · 278 votes
2y
I think a lot of things can be a value add depending on how they're positioned. A lot of complexes will have a welcome booklet with lots of discounts they've negotiated for their tenants, this could be one of those.
For the price of $5 I wouldn't think this is worth setting up, but if you just had it as an exclusive discount, nobody will be mad about it if they're not forced to purchase anything.
I personally think it's a great value add for your community. Try to stand out from the others by trying to build a community. How about working with a moving company and offer discounted services?
Or local restaurants and get coupons for your residents? To me, it's not about the $5 referral fee, it's the perceived value you are offering to them. Send out a survey to see what they want. It may be a pet store, a pizzeria, movers, renter's insurance. Think of any service residents use.
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
Offering It and adding it to the rent, might be partnering??
In which case I would worry about legal exposure.
What if Tow Truck Tommy bangs up one of the other residents' cars while towing it out of the lot or towing it back to the lot, or damages the towed vehicle????
As an agent for this business--offering it's services for a commission, would that also open you up to legal exposure???
You might want to check with your insurance company, and your general counsel and find out if you have some exposure if you do this.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
2y
Either recommend tenants sign up for it and get the $5 "kick back" from those that do or offer it as a service for the entire community and increase the rent to compensate. (If you do so, I imagine the company would give you even more of a discount.)
Adding internet service to the building and placing mesh systems around so the whole building is covered.. Then charging tenants additional cost can bring extra funds and you only pay the flat fee for internet service thru your provider.
Adding internet service to the building and placing mesh systems around so the whole building is covered.. Then charging tenants additional cost can bring extra funds and you only pay the flat fee for internet service thru your provider.
Although the internet is great in theory, there are major cyber security risks with it. If everyone is on the same network, then it poses hacking potential. Plus if there are any internet issues, then you have to deal with it. I had an investor client who was out of town and there were internet issues. I had to go by there to try to fix it.
We have a 50 unit apartment complex and a local Subscription based Roadside Assistance company wants to partner with us to provide our tenants with unlimited priority roadside assistance services. We already see 2-4 tow trucks and services trucks in our apartment complex every week so we definitely can see the value there for our tenants! The service would cost $17.99 per/month per/tenant and they would give us a $5 kick back from each subscription that we would add onto their monthly rent. We don’t want to nickel and dime our tenants, but we see the value and it brings in a little bit of extra income. I wanted to see what other owners think or if they offer services like this to their tenants and how they set them up?
Michael, It's an interesting idea. Others have provided great feedback here. The residents I've dealt with through the years tend to complain quite abit about the rent and additional fees for things they don't want. I liked the idea proposed by @Justin Moy regarding offering it as an add on discounted service. I also appreciated @Scott Mac's perspective regarding liability and accepting commission as that could be a slippery slope.
Ultimately on 50 units, you're talking about $250 per month revenue. How much time is needed to process the accounting on this? Does $250 cover the cost? Is it a real value add or will it add more stress and complication to the manager's already busy life?
Of the 50 units, I'd imagine only 10-15% might actually have cars that get towed regularly while the other 85-90% don't.
The add on service for those who want it, is how I'd proceed rather than blanket the entire community. Find out what other services that the towing folks offer? Will they add anything else to the pot? moving, box truck use for self-moving? It's gotta make sense to the residents if they are paying for the service. Remember, a lot of people have AAA or have a similar service with their insurance for a few dollars a month.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
2y
Subscription services are getting the reputation as being predatory because often times it ends up costing more than just buying the actual product, and the primary benefit is typically more profit for the company. That's why so many companies are switching to a subscription model. I wouldn't want to be part of it for this reason. I think people are getting sick of everything being a subscription, and it could have some blowback.
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
2y
Seems like this would be an "unseen" benefit that would be used by few and seen by even fewer. Can't see how the additional $5 per resident who "opted-in" would be worth the potential damage that might come from the towing service vendor doing a sloppy job or worse, damaging a vehicle. The tenant will come back to your management company to complain. If it isn't about the "kickback", charge $5 more per month and do something that would have an impact on a greater number of residents and make ALL residents feel more valued because they see that management is going above and beyond. Monthly social hours with hors d'voures, community BBQ, pool party/cookout, monthly car wash, monthly giveway's (gift cards, dinner with management, etc. for a small group (2 to 5...and post pics on your website) who provide feedback on what areas management can improve, etc. If you allow pets (and most people treat their cats / dogs as family) and a good portion of the tenants have pets, partner with a local veterinary clinic that will provide a free visual exam or similar service.