In today’s highly competitive property management industry, finding innovative ways to increase revenue without compromising resident satisfaction can be challenging for operators. With residents having a considerable number of communities to choose between, it’s important for properties to offer a competitive monthly rental rate while also prioritizing reduced operational expenses and maximum profitability.

An increasingly effective strategy among property operators involves instituting monthly amenity fees for residents. This approach enables properties to offset the expenses associated with maintaining sought-after amenities, enhance the resident living environment, and increase occupancy rates. In this blog, we’ll explore how properties can leverage smart building technology to successfully implement these monthly amenity fees to ultimately generate a higher NOI.

Identifying Desirable Amenities

The initial phase of implementing amenity fees involves identifying the amenities residents value most. National surveys consistently highlight keyless entry systems, energy-efficient appliances, and smart home technology as being some of the most highly desired. Residents typically prioritize convenient amenities that enhance their comfort and minimize instances of maintenance issues. Therefore, communities equipped with automated leak detection systems, water usage monitors, humidity sensors, and smart thermostats are significantly more appealing and can even incentivize residents to reduce their monthly costs.

Establishing Competitive Fee Structures

Prior to implementing amenity fees, properties should establish transparent fee structures that detail the costs and benefits for residents. It’s important to determine a fee amount that strikes a balance between resident affordability and operator profitability. With market conditions and resident preferences continuously changing each year, properties should periodically evaluate their pricing structure to ensure it remains optimized over time.

Minimizing Maintenance Disruptions

Residents often consider a property’s responsiveness to maintenance issues when choosing their next community. Therefore, a property that has executed a strategy to ensure efficient and timely resolution of maintenance concerns is highly attractive. However, to enable onsite teams to quickly resolve such issues, rapid identification of problems is crucial – but the reality is that most maintenance issues are only reported to staff once they have escalated significantly. To combat this, operators can utilize smart building technology that features an automated alerting system. This allows onsite teams to be immediately notified when a maintenance problem is detected, enabling them to promptly dispatch the appropriate personnel and resolve the issue before it turns costly. Not only does this eliminate the need to rely on residents to report issues, but it also often leads to problem resolution before residents are even aware of them — minimizing disruptions and demonstrating a property’s dedication to resident comfort.

Monitoring and Adjusting

Property managers should regularly evaluate the usage and satisfaction levels of amenities, as well as the financial impact of the fees on NOI. This ongoing assessment empowers onsite teams to make informed decisions, allowing for adjustments to fee structures or the introduction of new amenities to better align with resident preferences and market dynamics. Utilizing a building management system that delivers detailed weekly reports to onsite teams can be an effective way to easily evaluate progress and proactively identify any areas that may require improvement.

The Impact on NOI

Implementing monthly amenity fees has a direct impact on a property’s bottom line. By accurately accounting for the costs associated with providing amenities and balancing them with revenue generated from fees, property operators can substantially improve financial performance. Additionally, monthly amenity fees contribute to the overall value proposition of a property, making it more attractive to prospective residents and boosting retention rates.

Trusted by the nation’s leading property operators, TrustHab’s smart building technology delivers a powerful tool for properties looking to increase their NOI while providing exceptional living experiences to residents. From leak detection to energy management to access control, TrustHab offers a complete suite of IoT-driven solutions that empower properties to lower their operational costs and drive financial success. Check out our library of use cases to see the savings for yourself!