Which Apartment Amenities Can Increase Revenue On Your Rental Properties?
An amenity is any feature of a property that offers tenants usefulness, convenience, or enjoyment. Amenities can include large-scale facilities like a fitness center, package room, swimming pool, or conference facilities, but they can also be simple outdoor spaces for gathering or even smart home technology.
There are a number of basic amenities that tenants want at their disposal. Whether you provide those amenities or not, they will likely find a way to satisfy their need. Below, we list three desirable amenities that your tenants already get in some way shape or form. This means they’re a great opportunity for you to monetize a captive audience while also providing your residents something they want and need.
Offer Satellite TV
What they’re already doing:
Netflix, Hulu, Disney+, or a traditional cable package – your tenants are watching TV. You may have even okayed them to install satellite themselves. This is a great opportunity for you to capitalize on something that can also be a value to your tenants, simplifying their billing and providing them a better service and / or price.
Are you a good fit?
Even though we’re seeing a rise in popularity of streaming services, many of your tenants likely still desire access to traditional TV programming. Offering satellite TV to your tenants can be a great option for an additional revenue stream because it has a minimal entry barrier. Landlords managing 5 or more units can typically get package discounts for selling to tenants, but even landlords managing a single unit can take advantage of this revenue stream.
There are plenty of TV providers to choose from. Spectrum, AT&T, Comcast, Dish, and Verizon are all available options. You might already have a provider that you prefer, but if not, we recommend shopping around, calling to ask about package discounts, and looking into prices before making a decision.
There is somewhat of a time commitment in offering satellite TV to your tenants. Deciding on a provider, setting up your account, installing the hardware at your apartment complexes, and providing assistance to tenants are all time requirements to keep in mind. Some landlords have also experienced issues due to tenants partaking in illegal activity online. Implementing a plan to counteract such behavior is crucial.
How to get started:
- Create a game plan. Will you offer TV and wifi as a bundle? Which provider will you use? How much will you charge tenants? These are all things to consider first.
- Call the provider. Once you have an initial plan, call the provider to get a price estimate and to create an account.
- Install the hardware. Many providers will do the hard work for you by installing the hardware themselves.
- Advertise the amenity. Offering TV and/or wifi will set you apart from your competitors. Make sure prospective tenants are aware of what you have to offer.
- Collect payments. You can charge tenants alongside their rent. Simply create an addendum to their lease or write it in before signing.
How offering satellite TV will increase your revenue:
What you’ll pay: $50-100 per unit per month.
What you can charge: $10-30 per unit per month; you can charge tenants a little more if you offer them more amenities offered — think additional channels, wifi, and more.
Revenue Summary: Tenants will pay a $60-130 monthly fee; you will profit $10-30 per unit per month.
Add Coin-Operated Laundry
What they’re already doing:
We can’t guarantee it, but we can certainly hope your tenants regularly wash their clothes and linens. If you don’t already provide them access to a washer and dryer, they likely go to a local laundromat. That’s a hassle that takes time and money. Keep in mind that an in unit washer / dryer can be a great feature that raises the rental price you can charge to begin with, but depending on your market, clientele, and building, providing coin-operated laundry can be a real win-win.
Are you a good fit?
No tenant wants to go to a laundromat, and many pass up on units based on the sole fact that they don’t offer laundry units. Don’t miss out on prospective tenants or an additional revenue stream; install coin-operated laundry machines.
Coin-op laundry does particularly well in multifamily buildings, but any landlord could capitalize on this opportunity. It comes with a minimal time commitment and requires only the initial investment. You might have to put money into repairs overtime, but hopefully long after you’ve turned a profit.
How to get started:
- Purchase coin-operated washer and dryer units. Shop around to find a good deal. You might be able to get a discount if you buy multiple units at once.
- Place the units. Laundry units should go in a common area, preferably in a centralized location.
- Add a change machine. Providing tenants with the ability to get change in the same place they do their laundry will encourage them to use your equipment.
- Collect your money.
How adding coin-operated laundry will increase your revenue:
What you’ll pay: $700-1,000 per laundry unit.
What you can charge: $1-2 per washing/drying.
Revenue Summary: Up-front, you will spend anywhere from $1,400-10,000 based on how many washers and dryers you purchase. On average, landlords make $75-200 per month.
Put In Vending Machines
What they’re already doing:
Everyone loves snack foods and unless you live next to a 7/11 (or some equivalent convenience store) your tenant has to travel a bit to satisfy their craving. Providing a vending machine in some communal space can shorten that trip and give them more frequent access.
Are you a good fit?
Putting in vending machines could be a great additional revenue stream for landlords managing properties with 4 or more units, especially those with families. Kids love spending money on junk food and soda, and it could result in a significant profit for you. Student housing is also a great fit. You will need some access to a communal space though. Vending machines certainly don’t make much sense in a single family residential unit!
There are a few different options when it comes to adding vending machines to your property. You can go through a company that gives you the machine for a low price, fills it, and does the up-keep. Or you could choose to buy the machine and the products to fill it yourself. It’s all about how much time you’re willing to put in and how much you’re hoping to make.
Also, don’t forget to survey your tenants. If you have control over the snacks that go into it, ask each new batch of tenants what their favorite snacks are, what they’d like you to stock it with. They’ll appreciate the personal touch and of course, will be more likely to buy. And don’t think it’s all about junk food either. If you have a healthier batch of tenants (or you want to be cognizant of their diet), there are plenty of healthy vending machine options these days.
How to get started:
- Assess the demand. Do your tenants want vending machines? Would they use them? Would they attract prospective tenants? All of this depends on the kind of machines you put in, the types of tenants you have, and who you hope to attract.
- Buy the vending machines. As we’ve just discussed, you have a few options when it comes to buying the machines. Consider all of the variables and go with the best buying option for you.
- Put in the vending machines. Typically, the best place for the machines will be a common area that is centrally located. Placing them inside your facility will help eliminate unwanted outside traffic.
- Collect your money.
How putting in vending machines will increase your revenue:
What you’ll pay: $1,000-5,000
What you can charge: $1-3 per item.
Revenue Summary: How much you make each month will depend on the number of machines you put in, the number of tenants you have, and how much tenants buy. Landlords can make anywhere from $100 to $2,000 monthly.
Conclusion
This is by no means a comprehensive list. There are plenty of other amenities you could find creative ways to provide for your tenants. These are just low hanging fruit. And don’t think you have to always charge extra for those services. Depending on what you’re providing, you can bake some of those costs into your rental price. In either case, you’re increasing your overall revenue.
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