When searching for an apartment or house tenant, a benefits package can really attract quality customers. Not only do they provide value and service, but they can also reduce costs and keep properties maintained well in the long term.
In addition to that, you can also increase your revenue with careful implementation. Below, we discuss how to entice the best tenants with a resident benefit package.
What is a Resident’s Benefit Package?
A resident’s benefit package is a deal offered to tenants or property owners in apartments, condominiums, and housing estates. It provides an all-in-one fee for a number of insurances and services that may often cost more if sourced individually.
For someone leasing a property or building a portfolio, a benefits package is a great way to earn a little extra, particularly if you have a number of properties. It can take some time to find deals and make bargains with third parties but does return a lot of value.
In many properties the benefits package is compulsory. In others, it is optional if certain criteria are met. Some properties may offer differing levels of benefits packages.
How Much is an Average Package?
Packages prices can vary depending on the level of cover provided and type of property.
However, it is unlikely that a property would charge more than $50 per month for its benefits package.
Tenants Liability Insurance
The most important thing a benefits package should include is liability insurance. This covers the occupant if anyone is injured or damaged as a result of their property. For example, if a friend visits and breaks their leg in the apartment, liability insurance will cover legal costs and the payee if they are found liable.
If residents have their own liability insurance, then many benefit packages would offer a discount. The advisable amount is around $100,000 in coverage.
Online Tenant Portals
An online tenant portal takes a little time and capital to set up. However, if you are managing a number of properties it will be well worth it, making your job easier as a property manager.
A tenant portal is an online site that tenants can log into. From there, they can send any maintenance requests and pay bills. This saves a lot of time on administration from your end.
You will need to make sure tenant portals are digitally secure and update them regularly. You can also find a lot of ready to run tenant portals online.
Online Payments
Many companies charge an additional fee for online payment. However, as a lessor, it can save time if payments are made digitally. This is a great way to move tenants toward online payments, saving you time.
Let buyers of the package pay ACH and MLPM payments online free of charge. Rentmoney offers a service whereby tenants can pay rent in cash that will be processed electronically. These payments are time-stamped, saving any discrepancies related to late payments.
24/7 Maintenance
Another great incentive is to set up the use of a 24/7 maintenance line. This allows residents access to nonstop help in case of a maintenance emergency.
All they have to do is call the number and a professional will visit them to solve the problem as quickly as possible.
Credit Reporting
Offering credit reporting is not just a great incentive for a benefits package, but also a great way to incentivize residents to pay on time.
The resident will receive positive credit reporting for any payments made on time during the lease period. You will need to set up an account with a credit reference company to do this.
Payment Waivers
Some residents allow a one-time waiver of any returned check payment fees or ACH.
They can also offer one-time waivers of late payment fees.
Concierge Reductions
In many benefits packages, reductions are offered on concierge services. This will require you to work out a deal with a company or individual in advance. Typical services can include cleaning, handyman work, and gardening.
Larger companies can offer third party moving services. They can install internet, alarm systems, and utility activation. Check your local area for third parties who might be interested in working with you on this.
No Upfront Fees
When moving into a property, many landlords can charge fees, such as lease preparation fees and credit mitigation fees. One way to make prospective renters take your package is to waive these fees if they sign up for the package. Simply spread the fee over the cost of the package, so tenants are paying over a wider period of time as opposed to one lump sum.
This is extremely attractive as it takes a lot of the pressure off finding an affordable property. It also frees tenants up financially and allows them capital to buy furniture and deal with moving in costs.
HVAC Preventative Measures
If you are in a property that includes air conditioning, it is a great incentive.
The tenant will have fresh air conditioning filtered delivered to their door once a month.
Landlord Reference
Finally, offer a free of charge reference to any tenants who have satisfied all the maintenance and upkeep criteria.
This can help them find other properties and negotiate lower rents when they decide to move on.
Creating the Contract
When introducing a benefits package, create a contract that is separate from your tenancy agreement. This allows you to make any alterations without having to adapt to the legality of your rental agreement. Always remember that once you implement the package, you have a responsibility to deliver the services agreed upon to the tenant.
If you need more help and advice on property management, then visit our handy blog. We have lots of informative articles for landlords and tenants, such as this informative article about what to include in a lease agreement.