Increase NOI by Setting Up Home Services for Residents
- Oct 19, 2012
New York—In a recent webinar called “Ancillary Income: Enjoy Increased NOI By Helping Residents Set Up Home Services,” hosted by MHN and sponsored by NWP, presenters Chris Finetto of NWP and Jason Scutt of CSI and MyServicesNow demonstrated the benefits of bundling technology packages for residents. According to the presenters, by doing so, it makes it easier on the residents and provides ancillary income for the property managers.
“Moving is a daunting process—even for the folks operating the property,” Finetto said. “It’s a logistical ballet.”
According to Finetto, the challenge for property managers is creating an amenity or a perk for the residents without increasing expenses. However, he warned to do so with caution.
“Selling ancillary services can be a distraction from the leasing process,” Finetto said.
Scutt agreed that selling these services during move-in might be a little daunting. However he felt it was in the best interest of the property manager.
“[When they move in,] residents tend not to have the services they could and end up doing it on their own because it’s not in the lease,” Scutt said. “That’s a missed opportunity for revenue.”
In order to take advantage of the best deals, Scutt recommended studying up on the various companies offered at individual properties, since not all communities in a portfolio would offer the same services.
“Audit your revenue share opportunities,” Scutt said. “Use the audit information to create a baseline for your success at each property.” Another key to success with ancillary services is to make it as simple as possible on the residents. “It has to be easy, or no one is going to want to do it,” Finetto said.
Some of Finetto’s suggestions for offering these services to residents included introducing a concierge-based amenity, issuing a unique toll-free number for each site (which would also make sales tracking easier) and offering online access. Ultimately, these services should be an asset to both the staff and the residents at a property. According to the presenters, there are several benefits of offering bundled technology packages: it’s preferred by residents, it allows for revenue growth at the property, it’s a source of new income potential and it’s liked by the leasing associates.
“Moving is never going to be a fun experience,” Scutt said. “But we can make it a better experience.”