Make Your Smart Lockers Work Harder for You with Amenity Fees

Smart Lockers: Your Competitive Edge in Today’s Challenging Climate

The multifamily industry is facing a number of unprecedented headwinds. Exploding insurance costs, oversupply in new construction, potential supply shortages, and high interest rates are creating perfect storm conditions. The pressure is on for property managers to deliver on revenue and growth goals despite these obstacles.

In order to serve our clients’ needs, Parcel Pending helps you take advantage of budget friendly payment options, including subscription pricing versus a standard payment option. We’ll also work with you to make your lockers an amenity that works harder for you. In this blog, we explore how you can leverage amenity fees to boost your bottom line across your portfolio – without compromising on resident satisfaction or retention.

Why Savvy Property Managers Are Embracing Amenity Fees

In many ways, amenity fees are a win/win for both residents and property management companies. They enable properties to introduce new amenities that enhance their appeal without necessitating immediate rent increases. In the long term, they may also increase occupancy rates without requiring rent hikes.

It’s also key to look for the amenities that will incentivize resident retention. Our research shows that parcel lockers have proven to be an amenity that significantly increases resident satisfaction and lease renewals, with some communities experiencing up to 40% higher renewal rates following installation.¹ Smart locker investments yield exceptional returns in satisfaction because, unlike amenities like dog parks or EV charging stations, they serve nearly the entire community; a recent National Business Research Institute (NBRI) survey revealed approximately 90% of residents utilize parcel lockers in their buildings, with 73% receiving one to three deliveries per week.²

Amenity fees are reasonable when adding a new service, such as a pool, valet garage service, designated covered parking, or smart lockers. Smart lockers are perceived by residents as an amenity worth paying for as they deliver 24/7/365 on-demand access to packages without requiring property staff to handle package processing.

Making Your Parcel Pending Smart Lockers Work Harder for You

If you’re considering adding a package management solution, such as smart lockers, to your communities, strategic pricing plans and fee implementation can help you cover the cost of locker ownership or turn them into a revenue-generating amenity.

The most significant revenue opportunity arises from resident bill-back programs, where you can assess a per-unit or per-user fee for residents to use the lockers. This provides additional income to not only cover locker fees but also create a revenue stream with the portion that exceeds any monthly subscription or maintenance/software support costs. A typical 300-unit community can earn $1,500-$3,000 in monthly recurring revenue using this method alone. Some bill-back options you can do through Parcel Pending include registration fees and late fees.

For registration fees, you can implement an initial registration cost at move-in, typically ranging from $20-$50 per resident; multiply this by your monthly turnover rate to estimate your additional earnings potential.

For communities seeking to encourage timely package pickup, storage fees offer an additional revenue stream while promoting good resident behavior. By charging a daily fee to residents who don’t retrieve packages within a reasonable timeframe, you create an incentive for prompt pickup while generating additional income. We recommend a two-day grace period, though we’ll work with you to determine the optimal timeframe that balances resident satisfaction with each community’s specific needs and operational goals.

Amenity Fees in Action: AG Living’s Success Story

AG Living, a multifamily housing operator that manages six properties in the Dallas, Texas area, transformed its lockers into a revenue-generating feature by seamlessly integrating a locker fee into its amenity package, striking a balance between property revenue and resident affordability.

Greg Gantt, Director of Construction at AG Living’s parent company, Ashland Greene, explains, “Prospective residents often highlight the lockers as a standout amenity during property tours.” This feature has become a selling point, enhancing the overall appeal of their properties. “People have come to expect lockers when they step onto a property at this point,” he adds. “They want that convenience.”

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In today’s competitive multifamily market, smart lockers offer property managers a strategic solution that addresses both operational efficiency and revenue generation. Through resident bill-back programs, registration fees, and storage charges, communities can generate monthly recurring revenue while enhancing resident satisfaction and property appeal.

Ready to learn more about generating revenue in your property portfolio with Parcel Pending lockers? Speak to one of our package management experts today.

Sources:

1. Survey results gathered from case studies conducted with residents at Cortland Partners properties.
2. Parcel Pending by Quadient. 2024 Resident Preferences Report. www.parcelpending.com. August 2, 2024. https://www.parcelpending.com/en-us/resources/2024-resident-preferences-report/