The value of a rental community can be measured, at least in part, by its service-based amenities. Good tenants stay put when they feel that their wishes and needs are taken care of, which is a crucial part of investment property management.
When property managers and landlords set out to improve an existing multifamily property and start considering the options for amenities and service programs to provide to residents, it’s important to include every feasible option to ensure the property is more desirable to new tenants than your competitors’.
A service-based amenity is anything that can improve the value of your property and increase interest among potential tenants. Service-based amenities can include hosted social events, a pool, allowing pets—the list is endless.
Start by deciding what type of community you envision after improvements are completed and then consider which service-based amenities would benefit your residents the most. This is the most basic rule of thumb for establishing and maintaining happy residents.
Determining the value in the amenities and programs you select is key to making sure your investment is worth your time and the money you’ll expend. Carefully consider how a proposed amenity or service will benefit your residents and whether an amenity’s implementation will help achieve your top priorities—ensuring tenant retention and boosting new tenant interest.
Deciding which amenities or programs will most appeal to current tenants and also attract others to the community is best achieved by adopting a customer-driven mindset. Understanding your tenants’ needs and wishes is essential to practical property management
Make the effort to acknowledge which amenities and services your tenants want or need most instead of what you think they want. Taking time to listen to your residents’ input is a must. All amenities and services you select should take resident input, suggestions, and specific requests into consideration. Understanding your residents is the only way to make smart short-term and long-term decisions.
A few things to keep in mind:
Before you share plans to provide any amenities with your tenants, make sure you can deliver. Most property management professionals know to avoid making any announcements or promises prematurely, but a less experienced management team member or even an overly-enthusiastic landlord may be tempted to let the cat out of the bag before the deal is done. If this scenario happens, you’ll find yourself dealing with disappointed and possibly even disgruntled tenants
It’s important that property managers and landlords occasionally take a step back, evaluate, and put yourselves in your tenants’ shoes. Undoing disappointment is much more difficult than avoiding it in the first place. That’s how you excel in investment property management.
- Which amenities and services are most requested by the majority of your tenants?
- Do you foresee any potential problems in implementing the programs and amenities selected? If so, work with your property management team to create an implementation plan that includes a strategy for resolving any issues that may arise,
- How do you measure the return on investment (ROI) of the amenities you’re implementing?
Service-based amenities should drive value to everyone involved. When you implement amenities and programs at your rental property, eliminate the disconnect between what is laid out by the corporate office and how it is communicated at the site. Take the appropriate steps to ensure a smooth implementation launch and go through all the proper channels to ensure that all teams are aligned.
Accurately measuring the ROI of your amenities, services, and programs is essential to determining if an expense makes financial sense. Look at them, define them, implement them, and then reflect. Look back on your implementations and decide if they were successful and if not, how they can be improved.
1. First, determine if the implementation was successful by brainstorming with your property management team and asking for feedback from residents.
2. Then ask yourself: if an amenity is generating income and helping you meet your goals. Are your open rates high if you’re launching an online service? Is the new amenity getting a lot of use? These are the kinds of questions that can help you identify whether or not an amenity or service is working for your property.
3. As soon as you’ve determined what is going to work for you, measure your small wins—they will all add up. For example, if it is a goal of yours to collect staff feedback and you only get 2 responses, consider it a win! Find a benchmark and measure steps as slowly as possible.
4. Make sure that every amenity, service, and program you’re offering captivates your residents and gives them incentive to stay. Be sure that the services and amenities you are offering to your residents are focused on their needs and wishes.
While money is an important part of the business, creating a home for tenants is of the focus of property management. When you create the best environment possible for your tenants, your business and properties will thrive.
Create communicative relationships with your residents and provide a tenant experience that makes you proud. Once you decide on amenities you think are going to provide your residents with maximum value, implement those amenities and continuously measure their effect, Understanding your residents is an ongoing process that is crucial to successful investment property management.