Resident Benefits Package – Should You Offer?
- October 25, 2022
- Category: Property Management
There was a time when tenants could only find resident benefits programs in high-end rental properties and flats. But now, occupants of all rental houses can take advantage of the resident benefits package.
You can find many property management companies that provide resident benefits packages by searching “resident benefits packages” online. Tenants can enjoy advantages throughout the entire rental process. They now offer everything, from 24-hour concierge services and emergency repairs to insurance choices, delivery, and replacement services for air and water filters.
Packages also allow property managers to increase value for owners while reducing costs and adding new revenue streams.
This post will cover why it makes sense to provide a resident benefits package, the kinds of perks you can include, and how to put one into effect for your residents.
Why Provide a Resident Benefits Package?
Benefit packages are undoubtedly advantageous to locals. They offer services that residents would otherwise need to find and manage themselves for a relatively small charge. A resident benefits package is also beneficial to property managers.
The following three advantages will help property managers:
Property managers have the chance to earn more money by charging for resident benefits packages that accurately reflect the value of particular services. Even better, property managers can pay a monthly fee to a third-party service provider and then tack on an additional fee to residents to cover the expense of the service while still making more money.
Reduced Staff and Workload
Offering some benefits may result in less work for your team. For instance, online resident portals centralize all interactions and maintenance needs. Your workforce will spend less time sorting through emails, taking calls, and your maintenance team will spend less time doing paperwork.
Lower Vacancy Rates and Higher Resident Retention
Benefits packages can offer everything from basic comforts to services that safeguard their financial security. Residents are more likely to stay if you provide services they value, like changing the HVAC filter or managing the utilities.
Make sure to include the advantages you provide in your listings and marketing materials. An appealing benefits package can draw in more applicants, expanding your pool of potential tenants and decreasing the length of time your property is vacant.
What Benefits Should You Include in Your Package?
You can be creative with resident benefit packages as long as you stay within the constraints of your company and what residents value. But there are some essential benefits you notice more frequently than others.
Benefits Packages Frequently Offered
Some of the benefits packages frequently offered by property managers include:
- HVAC Filter Installation and Delivery: Sign up for a service that will install HVAC filters for tenants and deliver them regularly. By charging a small fee to residents, you can cover the expense of the service and generate some extra income.
- Refrigerator Filter Delivery: Similar to HVAC filters, some companies offer services that automatically deliver filters for refrigerator water systems. Please include them in your package, and when determining fees, consider the residents’ needs.
- Virtual Concierge: A virtual concierge can provide residents with various services, such as keyless entry, package receipts, reservations for restaurants and events, and on-site amenities like gyms and swimming pools.
- Resident Site: Through a single portal, residents may access community information, make payments, send messages, and save their documents.
- 24/7 Maintenance Requests: Provide residents access to a maintenance request website to submit requests whenever and wherever they choose.
- Utility Management and Payment: A single service will activate all utilities in the new resident’s name upon moving in. The property manager pays all utility companies by including only a single payment in the resident’s rent or package charge.
- Renters Insurance: Renters insurance in a benefits package protects occupants against liability and harm and shields property managers from liability for damage caused by uninsured residents.
Which Benefits to Add?
Benefits packages come in a wide variety. Your package deal can be simple and merely include insurance and HVAC services, or it can be complex and include extras like dog walking or dry-cleaning services.
Your resident population will have the sole influence on the benefits you select. Do your study before deciding which benefits will best meet the needs of your residents.
Examine the deals provided by property management companies with comparable properties and resident demographics. Additionally, survey your current residents to learn about the most benefits they would value. Use services like SurveyMonkey to simplify the setup and advertise the survey through a resident portal to make it simple for people to give comments.
Make a cost-benefit analysis of your listed benefits to decide which will bring in the most money. Consider your present service offerings and determine which you could incorporate into a benefits package.
How to Create a Resident Benefits Package
Communication and time management are essential whether you’re putting in place a whole new resident benefits package or adding new elements to an already-existing one. During every phase of implementation, current residents should be kept informed.
Don’t go silent until you have finalized your package after asking them about the perks they would like. Inform them of the services you’re thinking about and your implementation schedule through regular communication.
Inform the residents when those services will be accessible, how much they will cost, and whether or not they are required.
Identify whether or not current residents will be eligible for the benefits package at the time of their lease renewal or after a specific number of days, then notify them by SMS or email.
As part of the onboarding process and your rental advertising, let prospective tenants know the services included in your benefits package.
Property Managers make these common mistakes with Resident Benefits Packages
It’s time to think about what not to do with your resident benefits package, as you now have a better idea of what to give and how to deliver it.
The tenants don’t want to spend too much on services, regardless of what you deliver. Latchel, a provider of maintenance services, claims that benefits packages are typically no more expensive than $50 per month.
However, it would be best if you watched out that your benefits package doesn’t include more than you can reasonably charge.
Not Providing the Right Services
Residents won’t see the value in a package they won’t utilize and won’t want to pay for it either. Knowing what services tenants might find valuable is crucial.
Not only do unused services cost you and your resident’s money, but they also decrease resident satisfaction, which may lead to a turnover increase.
Talk to Residents About the Package
It’s critical to explain the advantages and disadvantages of new benefits packages to residents, especially as you implement them. Please provide them with tutorials that walk them through each service, or use your portal to communicate with them.
Ensure new tenants get documents outlining their benefits package and its cost when signing their lease.
Lastly, be sure that residents understand your opt-out policy. If you plan to charge for the package, you should inform residents whether they’ll use it or not.
How Can Property Management Software Help?
A powerful property management software solution can be helpful if you’re seriously considering a resident benefits package or if you need to find a better approach to handle the one you already have.
Property management software might already include many things you’re contemplating including in your bundle. For instance, many software has something like a Resident Center and offers 24/7 tracking, maintenance, and requests. Property managers can also provide Renters insurance as a service through the software.
An open API is another element of software platforms like Propertyware that enables property managers to incorporate other software services. For instance, you can link a virtual concierge or credit reporting service with your property management software.
Adding a services package may free up resources for your team while generating a new source of income. Providing convenient services can also help you keep your tenants happy and your owners pleased by lowering turnover and vacancy rates.
Benefits packages may be an easy win-win situation with software that makes adding services simple, boosting value for your residents, and creating new revenue streams for your company.