Many companies focus on the upside of what  amenities and ancillary services can do for a property with their ability to:

  • Keep up with the competition
  • Create a competitive edge
  • Generate additional streams of income
  • Reduce expenses
  • Attract and retains residents
  • Increase employee selection pool (as everyone wants to work for a great company and be associated with an awesome property)
  • Helps justify rents/rent increases

But don’t forget about the flipside…Ignoring or not getting a handle on your amenity and ancillary service agreements can lead to a downward spiral of:

  1.  Inability to service residents & staff needs (which leads to)
  2. Unhappy  & frustrated residents and employees (which leads to)
  3. Poor reviews and reputation (which leads to)

a.  Unhappy and less engaged staff
b.  Higher staff turnover (increased recruiting and training costs)
c.  Higher resident turnover (either move outs or evictions)
d.  Higher costs to attract & retain residents (which lead to)

  1. Lower rents with lower qualified residents just to keep the units occupied ( which leads to)

a.  Higher maintenance costs
b.  Lower revenues (which leads to)

  1. Smaller budgets (everything is cut or reduced including)

a.  Repairs, maintenance and upgrades to the property are reduced or eliminated
b.  Landscaping is affected
c.  Office and clubhouse furnishing begin to get old or tired looking
d.  Employees job descriptions may be impacted (more work for the same pay because certain jobs may be eliminated or not replaced when they leave)
e.  Employees salaries such as increases, bonuses may be impacted ( which leads to)

  1. Repeating the downward spiral of 1-5 above

Staying ahead of the competition and meticulously managing your amenity and ancillary services can lead to happier staff and residents, therefore resulting in an increase in your bottom line.