What is Ancillary Revenue in Property Management?

Ancillary revenue is the extra income property managers can generate beyond rent collection. Think of it as the cherry on top—while rental payments keep the lights on, ancillary revenue adds profitability without requiring rent hikes. In an industry where margins can be tight, these additional income streams help offset rising costs, improve property values, and create a better experience for residents.

But let’s be clear: ancillary revenue isn’t about slapping on arbitrary fees or charging residents for services they don’t need. It’s about identifying opportunities to enhance the resident experience while also boosting your bottom line. The best ancillary revenue sources provide real value, making life easier for both property managers and tenants.

Common Revenue Streams Property Managers Are Overlooking

Many property managers focus on the usual suspects—application fees, pet fees, or late payment penalties. But there’s a whole world of untapped revenue opportunities that can improve cash flow without increasing friction with residents. Here are a few commonly overlooked options:

• Package Management Services: With online shopping at an all-time high, residents need a secure and convenient way to receive their deliveries. Offering a package concierge service or smart locker access can be a revenue-generating amenity.
• Smart Home Upgrades: Offering residents the option to lease smart home devices like keyless entry locks, smart thermostats, or security systems can be a win-win—enhancing security while generating additional income.
• Reserved Parking & Storage Units: Monetizing designated parking spots, garages, or extra storage spaces can increase revenue, especially in urban or high-demand areas.
• Air Filter Subscriptions: Ensuring residents change their air filters regularly can lower HVAC maintenance costs while providing an effortless way for property managers to generate passive income.

The Growing Popularity of Resident Benefits Packages

One of the most effective ways to structure ancillary revenue is through Resident Benefits Packages. These packages bundle valuable services into a single monthly fee, making it easy for property managers to provide high-value perks while boosting their revenue.

The key to a successful Resident Benefits Package is ensuring that the services included are both practical and desirable. Popular offerings include:

• 24/7 Maintenance Support: A dedicated service line for maintenance requests reduces emergency call-outs and provides peace of mind for residents.
• Renter’s Insurance: Many properties require it, so bundling it into a Resident Benefits Package can simplify the process for residents.
• Credit-Building Rent Reporting: Helping residents build their credit by reporting on-time rent payments is a highly valued perk.
• Resident Rewards Programs: Offering incentives for on-time payments, lease renewals, and community engagement can improve retention rates.
• Air Filter Delivery: A simple but effective way to ensure HVAC systems stay efficient while providing residents with a seamless home maintenance solution.

By structuring these benefits into a single, transparent package, property managers can provide additional value without overwhelming residents with scattered add-ons. Plus, it creates a predictable revenue stream that helps properties remain financially stable in uncertain markets.

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