Happy Spring! The 2014 NAA Education Conference and Exposition is around the corner, and we will be there! If you would like to set up a meeting to learn more about how we can help you with your ancillary contracts, please contact us at either sfranklin@asmadvantage.com or ksummers@asmadvantage.com.

5 Out-of-the-Box Ancillary Services

 

You are probably doing some of these out-of-the-box ancillary services, but in case you are not, it is important to consider getting past the obvious ancillary revenue makers like telecom services, laundry services, utilities, or waste management.

 

1. Vending Machines - Not your ordinary vending machine, but one that supplies your residents with groceries...staples, including milk, eggs, bread, cheese, toiletries, pet supplies, laundry products, etc. And then there is the way out there vending machines you didn't know existed: Vending Machines You Won't Believe Exist

 

2. Resident Rewards Programs - These programs can be flexible and created to fit your company's needs. You can offer discounts and coupons, or have a strictly points based system. Rewarding residents for things like paying their rent on time, volunteering around the property (which also creates a community spirit), renewals, referring a resident, offering a resident testimonial, filling out resident satisfaction forms, and so many more. Here is a great article from Multifamily Executive by Les Shaver for tips: Resident Rewards Programs

 

3. Billboards - There is potential for revenue in blank spaces in areas ranging from elevators to common rooms, garages, and even on the sides of buildings. Just be sure not to overwhelm your residents with too much advertising in their face.

 

4. Pets - People are fanatics about their pets! They are a part of the family and are willing to pay pet fees to have their furry little creatures by their side. Taking advantage of that, you can offer grooming services, pet sitting and dog walking services. Create a gathering that includes the residents' pets, and either promote your onsite pet services, or bring in local companies that offer these services, and in return receive a cut of what they make from your residents.

 

5. Local Merchants - Introducing new (and current) residents to the local merchants not only will boost the local economy, but bring a little revenue your way as well. You can have the local merchants advertise in your community newsletter and provide links on your community website. Creating a booklet of local merchants including discounts and coupons is another idea. You can also host events bringing local merchants to your community to introduce their products and services to your residents, a great way to also increase community spirit!

 

A few other "out-of-the box" ancillary services include food truck events, garden plots, wine cellars and wine lockers, and use those rooftops to create revenue as well, like leasing space for cell phone towers. Every property is unique, it just takes a little creative thinking to bring additional revenue in while bringing value to your residents!

 

ASM Accomplishments

 

This section in our newsletter is to brag a little bit about our accomplishments we have achieved for our clients. It will give you an idea of what we may be able to accomplish for your company!

 

Case Studies:

 

- ASM worked on a portfolio wide laundry agreement in which the current portfolio had multiple laundry providers. Each agreement was expiring at a different time. ASM was able to negotiate a new portfolio wide agreement with one provider. This enabled all of the new agreements to be able to expire at the same time. The provider's new equipment accepted cash, credit and debit cards and they could be activated using a smart phone (as well as to notify the user when their load was finished and what equipment was available). The contract ASM negotiated generated more in signing bonus revenue than the owner requested and increased the overall recurring revenue for the portfolio.

 

- ASM spent approximately 6 months working for a client to disprove a telecom provider's insistence that they had in-force agreements on several communities. Once ASM was able to prove that the provider did not have any contracts in place (provider sent a letter stating to such) ASM was able to negotiate new agreements resulting in a significant increase in revenue for each community.  In addition, ASM was able to collect over $25,000 in funds the original provider failed to pay while they had in-force contracts. 

 

Pretty impressive, right? If you'd like to learn if we can do this for your company, please contact us for your free evaluation!

 

In This Issue