The Hidden Costs of Cut-Rate Amenities

The Real Cost of Package Management

The multifamily market is facing challenging headwinds anchored by economic uncertainty, high construction costs, and elevated interest rates. When every dollar going towards NOI and ROI counts, it’s understandable that property managers are scrutinizing every financial outlay to ensure it delivers positive returns.

Accounting for the total cost of ownership (TCO) and property profitability is critical when implementing any solution. However, intangible metrics also count: resident satisfaction, positive online reviews, and strong word-of-mouth recommendations can boost your bottom line beyond simple operational savings.

But what happens when an amenity doesn’t deliver on its promises? The consequences extend far beyond the initial investment. This blog examines the hidden costs of selecting the wrong package management partner and how these expenses can quietly erode profitability while damaging your community’s reputation.

The Hidden Costs of Off-Site Delivery Services

At first blush, off-site delivery services may seem like a reliable, easy-to-implement, reasonably priced packaged management solution. However, upon taking a deeper dive, these services often cause more problems than they solve. Winther Investment, Inc., for example, chose Fetch, an off-site delivery service, as the solution for six of its upscale communities, believing the service would solve its package management issues while exceeding residents’ expectations.  Unfortunately, the reality played out differently.

For example, all residents must download the app and change their “ship to” address to a special Fetch address. When a resident’s delivery arrives at the warehouse, they are notified that their package has arrived; they must then take an extra step to schedule a 2-hour delivery window to receive their delivery at their apartment. The ensuing problems are numerous: residents are then forced to stay in their units, awaiting a delivery. This requirement is reminiscent of days past when new occupants waited hours for their utilities to be connected. In addition, packages are often left unattended on resident doorsteps, leading to potential porch piracy. Furthermore, deliveries are frequently unavailable during desired times, so a package that arrives on a Monday may not reach the resident until Wednesday at the earliest. For urgent supplies or medication, this timetable is unacceptable.

It’s no wonder, then, that complaints about late, lost, and stolen packages rolled in from residents at Winther properties, forcing leadership to re-evaluate its package management solution. Winther sought dependable, on-site, resident-friendly services that also included a live customer service component. With the benefit of Parcel Pending’s innovative subscription model, Winther implemented a smart locker system for a flat monthly fee that was lower than the previous fee charged by Fetch. Management was thrilled to discover they would be paying a lower fee than that of the current off-site delivery service while making residents’ lives exponentially easier and happier. As Christopher Young, Regional Supervisor for Winther Investments, explains, making the switch, “truly got us out of the package business; we are literally making our residents happier with this amenity.”

The True Price of Bargain Package Lockers

Evaluating vendors solely on up-front costs might mean overlooking the needs of your on-site teams and communities.

Sandy Pedersen, Vice President of Operations,  for example, managed 35 communities in Southern California for the Sares-Regis Group. She quickly discovered that cut-rate locker vendors were willing to install locker systems without ever visiting the properties where they’d be installed. At one property, an installation that should have taken weeks ended up taking close to a year. And, even worse, the locker configurations weren’t based on residents’ package volume, the property’s need for oversized item storage and refrigerated lockers, or accessibility for carriers or residents.

More frustrating was when lockers weren’t working due to faulty hardware or software. Without a dedicated customer service line, residents were bombarding her office with phone calls and emails. As Sandy explains: “It’s frustrating, especially when you’re getting a call from someone who can’t get into their locker and is trying to get their medication.”

Today, Sares-Regis relishes its decision to use Parcel Pending. It’s estimated that the management office saves as many as 18 hours per week that were previously spent on package management. Most importantly, the lockers provide an added perception of safety for both current and prospective residents.

AG Living, a multifamily housing operator serving 6,500 residents in the Dallas, Texas area, also faced similar resident dissatisfaction when it acquired a property that had installed Amazon lockers. The locker issues included faulty doors, inconsistent delivery notifications, and locker configurations that didn’t meet residents’ needs.

Since AG Living was already using Parcel Pending at their other properties, they knew the value of having a true package management partner. After changing the acquired property’s package management to Parcel Pending, AG Living has been able to count the partnership as an unparalleled success. With 24/7 access, most residents actively use the lockers, demonstrating strong adoption and resident satisfaction. Staff no longer need to spend time sorting packages, allowing them to focus on leasing apartments and addressing resident concerns, which has dramatically improved operational efficiency.

Parcel Pending lockers offer a durable, user-friendly solution that has vastly improved upon the issues AG Living experienced with Amazon’s offering. The combination of resident convenience, operational efficiency gains, and reliable design has transformed package management from a daily headache into a community amenity that supports both resident satisfaction and staff productivity.

Deliver MORE for Residents with Parcel Pending

As the leading smart locker provider in North America, Parcel Pending understands the importance of delivering an exceptional experience for both residents and property managers.

Every solution we offer is designed, developed, and supported with multifamily communities in mind and we’ve made it our mission to deliver more service at every touchpoint. Property management teams receive dedicated support from installation through implementation and ongoing operations, while residents benefit from live customer support teams available seven days a week.

We also offer more customization, partnering with communities to create solutions that meet the unique needs of resident package management. From a wide range of locker types and sizes to custom colors and wraps that seamlessly match community aesthetics, every installation is tailored to the property’s specific requirements.

Financial flexibility is equally important, which is why Parcel Pending offers a range of pricing options to suit every budget, including purchase, subscription, and revenue-share models. This approach ensures that communities of all sizes can access best-in-class package management solutions without compromising their financial goals.

The results speak for themselves: smart lockers provide enhanced security, with 84% of residents who have access to them believing they prevent package theft.¹ They also consistently rank as residents’ preferred delivery method, providing peace of mind that strengthens community satisfaction. Parcel Pending solutions also drive more efficiency, with onsite teams saving up to 24 hours per week without compromising resident service. Most importantly, Parcel Pending delivers a higher ROI, with customers reporting a 40% increase in lease renewals after installing lockers.

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Ready to deliver more for your onsite teams and residents? Speak to a Parcel Pending by Quadient representative today.

Sources:

1. Vivint. Porch Pirates in the Hallway: 1 in 4 Renters Suspect a Neighbor Took Their Package. www.vivint.com. n.d. https://www.vivint.com/resources/article/apartment-porch-pirate-report-2025