The Top 10 Revenue-Generating Amenities for Apartment Complex Investors – From Fiber-Backed Property-Wide WiFi to Smart Parking!
Owners are now looking for amenities that will not only entice new residents to come their way but also create additional ancillary revenue streams. Revenue-generating amenities not only make properties more desirable but also wind up paying themselves off in a very short period of time. Additionally, the cash flow helps increase Net-Operating Income (NOI) and the final sales price upon liquidation.
We focused on the following four criteria when evaluating this top ten list.
1) Saving Resident’s Money: Everyone likes to save money. The best way to save residents money is to include an amenity in the property they already pay someone else for. This creates a highly desirable convenience and increases the residents’ perception of the value they are receiving in exchange for the rent they pay.
Amenities that most prospective residents are already paying for include Internet, Cable TV, water, electricity, gym, convenience items, and office spaces. These bare essentials are already budgeted into most residents’ lifestyles. Including these necessities can make more money for the property and remove the headache of installation appointments, set-up fees, and additional credit checks.
2) Generating Revenue: The amenity has to generate revenue for the property, as the title of this article indicates. However, the amenity cannot be overly burdensome to the property and leasing staff or cause additional headaches or distractions that take away from your primary business of “heads in beds.”
“Minimize turnover and reduce vacancy. Keep in mind that every day an apartment sits vacant on a rent of $1,000 per month, you are losing approximately $32 a day. Make sure your residents are happy, and your leasing staff is dedicated, skilled, and focused on leasing as a top priority. To borrow a hospitality phrase – “Heads in beds!” – is what the daily goal should be.”
3) Community Feeling and Experience: Common areas are the best way to ensure residents come into the community. When residents feel like they are getting an “extended” living area outside their units, they tend to feel a high sense of value towards the property. Some of the popular common areas consist of pools, playgrounds, gyms, pet parks, sports facilities, and lounge areas.
4) Safety: Residents want to stay safe and secure. Apartment security options have increased dramatically in recent years. Wireless options have opened the possibilities for buildings not wired with security in mind. Security cameras, electric gates, censored parking spots, adequate lighting, and keyless entry are examples of upgrades that can be installed easily.
Ten years ago, any wired security additions would have been extremely costly and labor-intensive. Wireless connectivity has allowed some of these options to become plug-and-play. Creating a “haven” for residents to call home has, and always will be, a top priority for owners.
Apartment living is increasingly more desirable these days. Various factors have contributed to a spike in demand for quality apartments. Prospective residents fill their wish lists with a wide variety of amenities. The sense of community has become a focus at many complexes nationwide, attracting many families to make them their home.
Many of these apartment complexes have been given a fresh, modern look, including highly desired, family-friendly amenities. There are many ways to increase these apartment complexes’ overall value. We have listed our top 10 below, including some or all of the criteria above.
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TOP TEN LIST
#10 – Parking:
Although the parking area is not usually highlighted on the apartment complex website or pictured on 3rd party websites, it is the first thing a resident will see in most cases. Parking lots in poor condition can often make a bad first impression on prospective residents. Many owners are resurfacing these parking areas and creating a nice, welcoming look. This investment strategy will create an inviting community environment for visitors and couple well with revenue-generating parking.
– Covered Parking: Parking premiums can bring additional income, especially in hot areas. Depending on the area and the demand for parking will dictate rates and revenue streams.
– Smart Parking: When it comes to maximizing profits, Smart Parking is a growing trend on the renovation “value add” checklist. Smart sensors are installed throughout the parking area and are connected to a wireless hub inside the leasing office. Smart parking not only gives the leasing staff the ability to issue specific parking spaces, but they can also monitor who is parking in these spaces. The more desired spots often come with a premium or are attached to larger units. This also allows owners and leasing staff to collect parking lot occupancy data without leaving their office. Unauthorized traffic can be mitigated, increasing security and safety for the residents.
– Gated Entry: This security feature goes hand in hand with cameras and monitored parking spots. Automatic gates with a keycode allow a leasing staff to control access to the property and monitor who comes in and out. It will enable owners to understand high traffic times and the number of visitors each day. Gated entry, coupled with security cameras, allows residents to have the same feeling of security that they might have in their own single-family homes.
– Electric Vehicle Charging Stations: Another option is to take advantage of the growing demand for electric vehicles. As electric vehicles become more popular, having charging stations can be a significant draw for potential residents. Plus, owners can charge a premium for the use of these stations.
#9 – Playgrounds:
The need for youth play areas has increased with a growing number of families choosing to reside in apartment complexes. Gone are the days when a simple slide would suffice. Parents are looking for safe areas where their children can play and exercise within the community. Making sure that these areas are clean, well maintained, adequately lit, and safe are all critical factors. Adults also demand comfortable seating for a clear play area view. Don’t forget to have strong WiFi in these areas for parents who work from home to keep the parents occupied while the kids play. With obesity rising nationwide, play areas show the residents that you care about their health.
– Adult Courts: On that note, why stop at playgrounds for kids? Consider adult playgrounds. Or better yet, traditional courts for single sports like basketball, tennis, or volleyball can easily be converted into multisport courts to take advantage of emerging trends like pickleball. These sports have shown high interest to millennials, Gen Z, and seniors. Expanding your investment potential to accommodate and attract a large number of demographics. Having these spaces as a draw, is sure to check off a bunch of boxes for your target market, which quickly creates retention, leading to consistent revenue and a stellar lifestyle brand.
– Other Interactive Play Areas: We can even take it a step further and think about how to create connections between families and generations. Incorporating interactive elements like splash pads or climbing walls can make playgrounds more appealing to both kids and parents. Helping families and groups beat the heat or take on a challenge that can take them to new heights, all while generating fun and a bonding experience, is a win/win!
#8 – Fitness Centers:
The gym business is booming, with the fitness industry expected to see 33% growth from now to the year 2028, according to Zippia, an online site that follows industry trends. Adults are working out more than ever, and gym memberships continue to increase. Residents are looking for properties that offer up-to-date fitness centers that contain more than a dusty room with an elliptical machine.
Modern fitness centers that include workout machines and cardio equipment are necessary to create replacement value for your gym membership. Advanced technology has allowed these centers to have futuristic features ranging from personal TVs, personal training machines, and smart access. WiFi is vital in these facilities, while residents stream music, movies, and live content from their personal devices. Apartment complexes with complete fitness centers on-site allow residents to cancel their gym memberships and save money while staying fit and active.
– Virtual Fitness Classes: Maybe you don’t want to invest in a whole fitness center. Why not take advantage of the growing trend of virtual fitness classes? Virtual fitness classes are digitally streamed workouts that residents can join from the comfort of their homes. These can range from pre-recorded sessions of yoga, pilates, HIIT, or dance workouts to live-streamed classes where residents can interact in real time with fitness instructors. The beauty of these classes lies in their flexibility and convenience, allowing residents to choose when and how they want to exercise.
You could partner with a local provider or take advantage of the many available online classes. Take it one step further and provide a space with TVs, WiFi, and floor padding while streaming a loop of quality Virtual fitness classes—a simple way of creating a cost-efficient, safe, and healthy community lifestyle.
#7 – Package Lockers:
Let’s face it; people are having packages delivered to their homes like never before. Multiple delivery companies can be seen visiting every apartment complex throughout the day. Delivery can be very complicated in an apartment complex. Delivery drivers often have difficulty locating specific units, leading to delays and lost packages. Package theft is and always will be a risk associated with front door drop-off.
Most leasing offices have been overburdened with unwanted residential package delivery. Many owners are choosing to install smart package lockers. This allows delivery drivers to quickly locate the drop-off destination and safely store the package for future pick-up. These areas are usually well-lit and include other safety features like security cameras. Package lockers are also highly desirable amenities for residents who have home businesses and/or order many products per week. Owners have maximized revenue from the package lockers, often charging for use over the allotted amount.
#6 – Security Cameras:
One of the downsides of apartment community living is that strangers share common areas with many people. Residents have fears ranging from property damage to break-ins at home to auto theft in the parking lots. Security cameras are more convenient and affordable than ever and benefit multifamily properties. Wireless cameras continue to be the most affordable option due to their plug-and-play nature. These cameras often require minimal installation cost and can easily be connected to the property’s internet.
Property-wide WiFi allows for maximum location options around the complex. Leasing staff and owners can monitor common areas, parking lots, and incoming traffic from the comfort of their offices or even remotely from home. These cameras can be connected wirelessly to the cloud, saving data for years. Security cameras give residents a feeling of security and can quickly increase the overall safety of the property. In addition, owners can save money by limiting the amount of property damage in the monitored areas.
– Mobile Alerts: Integrating security systems with a mobile app that sends residents alerts for suspicious activity can add an extra layer of security and engagement. In an era dominated by smartphones and instant communication, mobile alerts have become crucial for apartment complexes to enhance security and resident experience. These real-time notifications, delivered straight to residents’ smartphones, offer a myriad of benefits and a sense of community connection to boot.
– Smart Locks: Smart locks are electronic and wireless locking systems that offer various access methods, such as keyless entry using a code, smartphone app, or even biometric verification. They often have features allowing remote access, monitoring, and management. There are many benefits of Smart Locks for Multifamily Owners and properties. Here are a few that come to mind:
– Enhanced Security: Traditional locks can be picked, keys can be copied, and access can be compromised. Smart locks, with their advanced encryption and security features, reduce the risk of unauthorized access. Additionally, they can be integrated with security systems to notify property management or security personnel of any breach attempts.
– Keyless Entry: Gone are the days of residents getting locked out or losing their keys. With smart locks, residents can use codes, smartphone apps, or even biometrics to gain access. This enhances convenience and eliminates the costs associated with lost key replacements or lockouts.
– Remote Access and Monitoring: Property managers can grant or revoke access remotely, which is especially useful for maintenance requests or for granting access to contractors. This feature also allows for real-time monitoring, ensuring property managers are always aware of who enters or leaves the premises.
– Temporary Access Codes: For guests, maintenance staff, or temporary visitors, temporary access codes can be generated. This ensures security while providing the necessary access, and once the purpose is served, the code can be deactivated.
– Cost Savings: While there’s an initial investment, smart locks can lead to long-term savings. Reduced costs associated with key replacements, rekeying after resident turnovers, and enhanced property security (potentially reducing insurance premiums) all contribute to a favorable ROI.
– Property Value Enhancement: Modern amenities like smart locks can significantly boost the perceived value of a property. Prospective residents, especially the tech-savvy generation, often prioritize properties with advanced security and convenience features. This can lead to higher occupancy rates and even allow for premium rental pricing.
– Integration with Other Smart Home Systems: Smart locks can be integrated with other smart home systems, such as lighting, thermostats, or security cameras. This creates a cohesive, connected living experience for residents, making the property even more appealing.
#5 – Convenience Marketplaces:
Modern-day vending machine areas have been given a new look. Although a simple line of vending machines still serves as an excellent additional revenue stream for owners, many choose to create small marketplace rooms for resident convenience. These rooms often have more than just candy bars and soda. Items range from shampoo to light bulbs to boxed food items. Ensuring these rooms are well-lit, have adequate security cameras on all machines, are in proper working condition, and secure reliable WiFi is imperative.
With Amazon’s “Just Walk Out” touchless checkout beginning to roll out, having a smart marketplace will be a massive opportunity for property owners to increase revenue by creating a convenient, frictionless offering for their residents while avoiding the need for costly cashiers/labor. A win-win indeed!
#4 – Pet Areas:
We know that residents love their pets. It seems funny that Pet areas are on the list much higher than playgrounds. The truth is a pet owner will often make their decision based on the pet facilities available. These areas must be well-maintained and clean. Pet owners not only use these areas as recreation for their pets but also find that they tend to meet other like-minded people in these areas.
Futuristic additions such as smart water bowls, censored lighting, or pet spa/grooming stations can be a significant draw for pet owners. They can also be a source of additional revenue. These additions create nice touches to these mini pet parks. Having designated areas for pets also creates less waste in other areas of the property, which will delight the non-pet owners.
#3 – Smart lighting:
One of the major upgrades at a desirable apartment complex is quality lighting. A well-lit property that can be safely navigated at night allows residents to get out and enjoy the common areas when it’s dark outside. A lighting upgrade can benefit walking paths, dog parks, playgrounds, pools, and ramadas. Adding lighting inside of units that the WiFi can control is highly desired by most residents and creates an energy-efficient option for owners who have decided to make electricity included in their rent. Smart lighting could also decrease Net Operating Expenses for your vacant units.
– Smart Thermostats: Interested in attracting a more environmentally conscious demographic? Why not take advantage of the growing population concerned with climate challenges while also decreasing your Net Operating Expenses from high power bills for vacant units (did someone really leave the AC on and the windows open?)? At the crossroads where technology and sustainability intersect, smart thermostats emerge as a beacon of innovation for multifamily properties. These devices, which allow for intelligent temperature control and monitoring, offer a plethora of benefits that extend beyond mere comfort.
– Energy Savings: One of the standout features of smart thermostats is their ability to optimize energy usage. By learning residents’ schedules and preferences, these devices can reduce heating or cooling when unnecessary, leading to significant energy savings. This reduces utility bills and contributes to a greener, more sustainable property.
– Remote Control: Residents can adjust their home’s temperature remotely, ensuring they return to a comfortable environment. This feature is especially beneficial for those who travel or have unpredictable schedules.
– Maintenance Alerts: Many smart thermostats can detect and alert residents or property management about HVAC issues. Early detection can lead to timely maintenance, preventing costly repairs or replacements in the future.
– Enhanced Property Value/Rent: Modern amenities like smart thermostats can boost the perceived value of a property. Prospective residents, especially the tech-savvy generation, often prioritize properties with advanced, energy-efficient features.
– Data Insights: Smart thermostats provide data on energy usage patterns. This data can be invaluable for property managers looking to implement broader energy-saving measures.
– Integration with Other Smart Devices: Smart thermostats can often be integrated with other smart home systems, such as lighting or security. This creates a cohesive, connected living experience for residents.
– Cost Savings for Property Owners: Implementing smart thermostats can lead to substantial savings for properties where utilities are included in the rent. Property owners can significantly increase control by optimizing energy usage across multiple units and thus reduce overall utility costs.
No longer do you have to worry about whether your hard-earned money is blowing out that open window from that icebox of a vacant unit? With smart thermostats, you can easily stay on top of it. All it takes is a click of a button or an automation to keep that money in your pocket.
#2 – Resort-Style Living:
Most apartment complexes have pools. For years, pool resurfacing has been one of the most common upgrades for apartment renovations. Residents are looking for more, even in B and C-class properties. They are calling for resort-style pool areas that often include upgraded loungers, reservable ramadas, BBQ grills, and easily accessible WiFi. Creating an area that residents can escape to during their off time adds value to their lifestyle and a feeling of prestige. Residents are more likely to have family and friends visit when there are outdoor amenities available. Consider renting the ramadas for a fee or, better yet, include a small resort fee line item to every lease.
– Roof-Top Deck: While a must in most urban settings, a rooftop deck and other common-type areas that offer a place to congregate, lounge, and entertain, all while providing high-rise views of the landscape surrounding the property, serve to create an experience that is memorable and enjoyable. If this space has access to a seamless internet experience, allowing residents and their friends to share music or video experiences that heighten their time together will only serve the desire to remain on the property and share more moments with others. This will lead to the best, most inexpensive, and most powerful form of marketing available, word of mouth!
#1 – Property-Wide WiFi:
Internet remains the #1 desired amenity for prospective residents.
“Renters today demand seamless connectivity, from curb to couch and everywhere in between. Reliable cell phone service ranked as the No. 1 community amenity, with 86 percent of survey respondents indicating interest. Renters are even more serious about their internet connectivity, with nine out of 10 respondents saying they were interested in or wouldn’t rent their home without it.”
The emergence of cutting-edge Property-wide WiFi systems allows owners to combine the high-speed mobility desires of wireless with the high bandwidth, high reliability, and low latency of Fiber-Backed WiFi.
With the number of work-from-home and home-schooling residents continuing to rise, robust and affordable WiFi is a must. As you may have heard, a growing number of owners have installed WiFi infrastructures into their properties already, allowing residents to use their secured connection wirelessly throughout the entire property. These owners have figured out that almost every household in America is spending money on the Internet, so why not receive the revenue?
“… the WiFi program has been very popular with the residents. We have received positive reviews online and in person at the leasing office, and we expect this to continue. We are currently in an active buying phase, and it makes sense to use the “Revenue Generating Internet” amenity at our new apartments as they are purchased.”~Ryan Beaupre, Managing Partner, Sentinel Peak Capital Partners (SPCP)
The Hub at Chisholm Trail and The Haven at Chisholm Trail in Fort Worth, Texas, are real-life examples of apartment complexes that have successfully implemented revenue-generating amenities to increase occupancy and revenue for the SPCP team.
This “Revenue Generating WiFi” idea increases monthly profits and the value and eventual resell of the property. All that to say, in today’s digital age, seamless Internet connectivity is no longer a luxury; it’s a necessity. The demand for uninterrupted, high-speed internet has skyrocketed, especially with the increasing number of people working from home, attending virtual meetings, streaming entertainment, and even pursuing online education. Some other benefits of Property-wide WiFi are:
– Ubiquitous Connectivity: One of the primary advantages of Property-wide WiFi is the promise of ubiquitous connectivity. Whether a resident is lounging by the pool, working out in the fitness center, or simply relaxing in their apartment, they remain connected. This continuous connection ensures that residents don’t face disruptions in their online activities, whether on a crucial work call or streaming their favorite show.
– Security and Privacy: With a well-implemented Property-wide WiFi system, security is front and center. Advanced encryption protocols can be implemented to ensure that residents’ data remains private and safe from potential cyber threats beyond what they would ordinarily have with a home modem/router setup. This provides peace of mind to the residents and adds a layer of trust in the property management’s commitment to their well-being.
– Customized Plans and Scalability: Property owners can collaborate with managed internet service providers (MISP) to offer customized plans tailored to the needs of the residents. Whether someone requires basic browsing speeds or high-bandwidth plans for gaming and heavy streaming, there’s something for everyone. As technology evolves and data consumption grows, the infrastructure can be scaled up to meet future demands.
– Cost-Efficiency for Residents: By owning a Property-wide WiFi system, apartment complexes receive wholesale-type pricing for access. The ownership and control of the system and the subsequent price to the residents often result in considerable cost savings for them. Residents can now enjoy high-speed internet at a fraction of the standard market rates. This becomes a significant selling point for potential residents, positioning the property as modern and considerate of residents’ needs.
– Integration with Smart Home Devices: As mentioned above, as residences become smarter with devices like smart thermostats, lights, and security systems, a robust WiFi network becomes the backbone supporting these technologies. A Property-wide WiFi system ensures these devices remain connected and functional, enhancing the overall living experience.
– Enhanced Community Engagement: With a strong WiFi network, properties can also introduce community platforms or apps where residents can engage with each other, book amenities, or even attend virtual community events. This fosters a sense of belonging and community among residents.
Property-wide WiFi is not just about internet connectivity; it’s about enhancing the overall living experience, ensuring security, and providing value to the residents. As we move towards an even more connected future, properties prioritizing such amenities will undoubtedly stand out in this competitive real estate market.
There it is, our Top 10 Revenue Generating Amenities for Apartment Complex Investors. While each of them adds its own interesting twist and is potentially a home run, to take full advantage of what each may offer, there is a clear winner. Property-wide WiFi is our number one value-added renovation for Multi-Dwelling Units (MDU) properties. MDU is seeing a new wave of savvy investors who want to “have their cake and eat it, too.” Revenue-generating amenities are a visionary way to upgrade your property, increase your NOI, and increase occupancy.
MDU Property-wide WiFi is the foundation of most technology upgrade options. Building an infrastructure first will allow you to be ready for many other possibilities in the future. This is why, out of all the potential options, Property-wide WiFi is the clear leader and a must-have for properties that want to be prepared for a future that will only increase connectivity, mobility, and technological advances!
Source: Multifamily Insiders
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