A Budget Including Amenities Can Help You See and Save Green!
It’s that time of the year again: the preparation of next year’s budget for your community. Your budget is likely to cover a lot of different areas; from marketing and sales to staffing and screening. While these are necessary for the property to keep functioning, make sure to make room for amenities. Amenities can increase occupancy and drive increased revenues. It can also be used in your marketing efforts to generate leads. When budgeting for amenities, there are a few things you need to consider. If you follow these three steps, you’ll be good as gold!
The best amenity is a wanted amenity. A good way to gauge interest in a potential amenity before purchasing is to survey your community. What do they want? What amenity adds convenience for them? What’s going to make them want to renew their lease? You may think your community desperately needs a guinea pig playroom, but you better check first. An amenity collecting dust is a waste of money and isn’t generating ANY revenue.
Stemming off of the first point, when you figure out what amenity or amenities your community wants, it’s important to consider the ROI. You don’t want to commit to an amenity with a short lifecycle. You’re looking for an investment with long-term results. This can be challenging, especially when trends can come and go. Doing your due diligence through research will be vital to making sure your addition isn’t a dud. Find industry resources that can provide the data you’re looking for. Numbers don’t lie and they can be a great guide for keeping up with trends in multifamily!
Ok. You’ve listened to the community and you’re devastated about their lack of concern for the guinea pig playroom. You’ve also taken their suggestions and done some research on your own. Still hesitant about pulling the trigger on a certain amenity? Find a community that has what you’re looking for and go see it! For example, if you’ve been researching package lockers, find a community with a system. When you get there, ask to see the system, but also ask their opinion. Have the lockers made residents happier? Have they seen an ROI yet or expecting to? How do they work? Don’t hesitate to ask questions from an unbiased party before going into a sales process.
No one likes to budget. It’s time-consuming and can be difficult to stick to if problems should arise. But a proper budget can drive additional and recurring revenue if there’s room for an amenity. Then it’s just a matter of researching and selecting the amenity that will have the highest impact on ROI. Finally, go see it in action somewhere! An amenity can be just what your community needs to grow and thrive. Choose wisely and budget appropriately!