Ways to increase revenue & retention through creative services/amenities/expenses ?

Question

Services and experiences are like the new currency , I wanted to start a discussion on how we as real estate investors we can capitalize on this trend. Specifically, I'm interested in hearing about the add-on services and amenities that you offer to your tenants.

I've noticed that clubhouses, and larger communities and amenities are becoming more and more elaborate for even the suburbs or midwest markets  but what about properties that don't have those things? For those of us with smaller properties with offsite management, what can we do to offer unique and valuable experiences to our tenants?

Some examples im thinking of add-on services that could be offered include pet walking/feeding, cleaning, laundry, carpet cleaning, and other household services. Other ideas could include breakfast on the go, seasonal decorations, community events, giveaways, and unique amenities like local business partnerships ( deals), and outdoor recreation areas.

Of course, the question arises of whether to charge for these services or offer them for free. Dose offering certain amenities for free relay help attract and retain tenants, charging for these could help increase revenue and cover the cost of providing those services. but is it even noticed or appreciated worth the increased income?

What has been your experience with offering add-on services and amenities to your tenants? Have you found it to be a successful way to differentiate your properties and attract and retain tenants? I look forward to hearing your insights and ideas.

Jim K. · Answer

@Nathan Faselt

I'm not sure it falls into the "add-on" category but an interior/exterior camera setup is a fantastic idea for for every multifamily from a C'class building and up. Tenants LOVE cameras, especially the more modern ones with little turn-on/turn-off motion detection spotlights and infrared night-vision capabilities. At the same time, criminals loathe them. Lights are a close second in a tenant's heart. Light up the parking lot constantly and your entrances/exits with turn-on/turn-off motion-detection lights. This has been a game-changer for us.

Mike Bybee · Answer

I went to a Mobile Home Park owner group recently and this exact discussion came up for smaller parks.  15-50 pads.  One person has a small park with a lot of families, many single moms with kids.  He was considering installing a splash pad.  Apparently it is a water feature, where kids can play.  Install costs are about 25K and it recycles the water during use with a small footprint.  I thought that was an interesting idea.  Sure as heck beats the cost and liability associated with a pool.

Another, has started to install outdoor cooking Pavilions, and he said he has received good response on the ones that he has installed.

And another said he hired a landscape gardener vs a lawn maintenance person and started watering the grass.  Now has blooming flowers and green kept grass through all seasons.  He said it has helped with tenant acquisition and retention.  He also has spring cleaning week, where he brings in an extra dumpster so everyone can clean house while he is cleaning the park.  And if some tenant owned homes he will have the home painted and allow the tenant to pay for the painting in the rent.  Likewise, if an appliance goes out he will do the same.

Another, has a park in the city.  He said his manager has had numerous conversations with tenants about the city crime.  His manager asked him if he could put up a flyer to offer firearms training for those that were interested as the manager is an instructor.  The park is gated with video, but the neighborhood has gotten rougher.

I know this was a plex conversation, but thought some of the ideas could transition.

Regarding the appliances, I have another SFH portfolio friend, who refuses to furnish appliances for the homes.  However, he will offer a tenant purchase program as an addendum to the lease where he buys the appliance and the tenant pays him over time on a rent to own concept.  If the tenant leaves and the appliance contract is not paid off, they cannot take the appliance.  He then resells the appliance to the next tenant.  He said it has saved on appliance storage and repair bills, and the tenants view it as him trying to help them out.

Scott Mac · Answer

You really have to know your demographic to know how to spend your money to make money.

Dog walking in a class C place will probably not go over so well, but garbage service might (???)

You really have 2 things to consider the Fantasy of it--letting you close easier, (the potential renter believes they will use this item)

and the reality of it no one using the pool except one apartment, yet pool overhead is expensive, deprecation on equipment, taxes, chemicals, upgrades to equipment, resurfacing, emptying trash, stolen deck chairs, etc...

Same with a workout center, treadmills and big balls, and mats or treadmills plus workout machines, and when the TV's get stolen, etc..or nothing...

What do potential renters for your specific place....think they want, and really do want....and then there is the cost....

If you have dogs a dog walk is a good thing as the dog waste should be less all over the lawn.

Just my 2 cents..

Nathan Faselt · Answer

@Nicholas L.  good question-  I mention in the post "For those of us with smaller properties with offsite management, what can we do to offer unique and valuable experiences to our tenants?"  In this I mean anything from 12 - 80 units.

@Mike Bybee. Thanks for sharing your thoughts and real experience in this post. I love those ideas all good cheaper ways to help tenants feel more cared for and that reasons to stay home.   Haha the fire arm training is funny may not be a great then for incoming tenants if they are concerned about the general neighborhood.  or maybe if would encourage people to stay there "depending on your view of guns" haha.  Anyway I am interested in the difference between a" landscape gardener vs a lawn maintenance person" I have never heard of that before. do you know the cost comparison or other things this vender would do?

@Scott Mac I value your 2 cents.  But absolute need to consider the class and type clients.  haha now that you mention it we basically already offering a garbage clean up serves already at some of the C class properties. "picking up everyones mc Donald warpers, pop cans in the parking lot and lawn"

"You really have 2 things to consider the Fantasy of it--letting you close easier, (the potential renter believes they will use this item)" Great quote.  You would be putting alot of this under marketing/ advertisement dollars to the IRS,

Mike Bybee · Answer

Jim, regarding the cameras.  How would you setup the infrastructure?  I presume this means the landlord would be providing base internet to all tenants?  With smaller properties, would the camera feed be directed to the PM and owner?  Would the tenant have the option of viewing?  What is typical from your perspective?

Nicholas L. · Answer

@Nathan Faselt

is this in the context of large multi family?

Ways to increase revenue & retention through creative services/amenities/expenses ?

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