Have any of you heard of a property charging an amenity fee?

Quick question. I've come across a management company in Dallas Texas that wants to start charging an amenity fee. Have any of you heard of a property charging an amenity fee and if so how do you explain that amentiy fee to prospects/resident's?? Thanks in advance for any input!!

I charge rent plus a monthly community fee! I do not think calling it an amenity fee is the best wording. There is nothing wrong with an extra fee to cover the cost of amenities! IMO
You do need to the increase with renewals however, not across the board. I think you will find many companies doing this.

Therese Miner thanks! I have heard of senior communites charging a community fee but not a conventional property.

What is the standard fee you are charging.....I have been racking my brain trying to figure out something outside the norm to generate income at my properties

Billie Sue Vance our app is $50 per adult and admin fee is $200. Then deposits. Thats all our fees other than $300 pet fee.

I don’t like the idea of itemizing fees like that. Just include it in the rent price

Also, I work on the vendor side in collections now and I can tell you from experience that the fluff fees are the first to go in judgements

we include cable/wifi in the rent as well as washer and dryes are included and we have smart nest doorbells smart thermostats and smart front door locks. Our selling point has been telling people thats included in the rent. We have been open for 6 months and now corporate is wanting to start charging an amentiy fee.

Kassy Dawn I could see that going sideways. Its a cool feature BUT most would probably balk at paying for it and ask for non smart versions lol

Just add it to rent!! There’s no way to regulate use of the amenities if the fee is optional. This kind of tactic is just shady. You advertise one rent then prospects come in only to find out there’s monthly pet fees, utilities, and amenities fees??? So now your rent is over $100 what was advertised. It just pisses people off. It’s illegal to charge this type of fee in Oregon. Thankfully!!!!!

Amenities are common things to charge specific units. It's an easy function in most prop mgmt softwares.

We do and call it an amenity fee

So, if a resident doesn't want to use the "so-called" amenities do they get the fee waived? How would you justify an additional fee if the smart systems are built into the unit? It should just be included in the rent charge if the resident has no option to opt in or out. I would never move somewhere that chose to advertise one rate then nickel and dime me. It would piss me off that they wasted my time. I hope they disclose the additional charges upfront before someone wastes their time looking any further into renting at the property. Just because a lot of apartments are moving in this direction doesn't make it right.

Its just like Resort Fees at hotels. If you have limited access to amenities you can restrict entrance to those who pay, if not, it's tough. New buildings are putting in electronic locks at entrances like hotels do.

Wondering if this is how owners will offset the inability to raise rents in Rent Control states? May be good way to generate the lost revenue from lost rent increases.

David Carchidi absolutely! its exactly what they did with pets and parking.

We charge a one time amenity fee at move in that helps cover the costs of the amenities

I've had properties in several different states charge amenities fees - some as a single upfront fee an some as a reoccurring as a reoccurring charge .. most popular in the DC area from what i recall.

How many leases have you lost because of the fee?

We have not lost any leases. My comps are also charging fees-they maybe a little less or a little higher there on somethings-it is just how you sell them. Right now we are the only ones charging water (it is new in my demographic area but in other counties they have been doing it for decades-I have faith it will catch on with my comps.

We charge a $600 amenity fee at the time of move in-easy sell -it goes towards the upkeep of the bark park, tennis courts-indoor and outdoor pools and indoor and outdoor basketball courts./I am all about extra revenue-we just started charging a flat rate for water based on apt. size, pet rent of $25, $400 non refundable pet fee, and garage rent-this is the way it is in the Chicagoland area.

My property was just bought out and we started charging a $5 amenity fee. I have not had one question about it from new residents or renewals and we don’t hide the fee. Maybe because it’s a pretty low fee?

We charge here in San Diego. I say it’s for the remodeled gym, upgrades to building, etc. can’t be waived and it does set some people off.

We charge an annual amenity fee, at move in and then again with every renewal. We started it at $35 a year but we're moving it to $50 depending on the property location/demographic.

There's a couple here in fayetteville. They explain it as it helps keep the amenities in tip top shape. The property I'm talki g about has a gym that puts the one I go to, to shame its seriously awesome.

I would simply explain that it was a fee that many others have been charging for a number of years. Your company has done its best to avoid it for so long, but overhead costs are increasing and there is no other way to offset. This small fee will allow you to continue to operate with high standards. Etc. etc.

If you’re doing this or considering it...you’ll wanna make sure you have a first rate system in terms of credentialed access. You could have tiers of amenity access. Perhaps Platinum/Gold/Silver access. Contact me - I’d be happy to help!

In the Northeast (NY/NJ) we have amenity fees and it’s non-negotiable for new move ins and upon renewal. Fees range anywhere from $400-$700 per year depending on the amenities and services at each community. Some break it into a monthly amount to make it more palatable for residents. It’s additional income and residents have come to expect it with the amazing amenities that exist in communities now.

I’ve heard of an all inclusive amenity fee, so your residents don’t feel nickel and dimed.
Depending on what’s included and what your clientele is:
I’ve seen communities list out the savings residents get from the amenity fee:
“Monthly subscription to CrossFit is $100, Spectrum cable+internet $125,
OR move in with us and you get 4 free CrossFit classes a month, cable/WiFi included for $75 per month”

They charge for anything you can think of and many things you cannot think of.

We charge $525 for new move ins and $475 at renewal regardless if you use the amenities (pool, fitness center and lounge). I’m in NJ. All of our communities charge an amenity fee. I explain it’s for the use of the amenities as well as overall maintenance of the community such as snow removal, landscaping, etc.

Kassy Dawn - One way to greatly increase revenue at your property is to completely stop using security deposits in any unit ever (as are the top 10 property managers in the US) and use a free (plus they give you ancillary income) Lease Insurance product like LeaseLock. You advertise your property as Zero Deposit, attract prospects, get a lift in conversions (and NOI), keep your screening exactly the same so you're not letting in any worse of a renter, and charge a few bucks more than the deposit waiver fee every month. LeaseLock wraps around your native online workflow and is already integrated with all the top software programs...so it's zero effort, zero touch for you and your leasing office, but you get all that extra revenue every month on every unit. The renter pays an extra $29/month (baked in to their rent) on the lease billing statement. And you get $5000+ coverage on every single unit for unpaid rent and damage and legal fees...way more than what your security deposit gave you in coverage. Plus stop managing security deposits altogether...big OPEX savings. Good luck.

I’ve been a leasing consultant in the past for over 5 years and we didn’t have all these random fees added. We only charged the pet fee, and additional deposit. This makes sense to be a “FEE” because it’s something only certain residents will pay if they have said pet… no pet , no charge. Calling everything else a fee makes no sense since it is a forced charge I can’t get out of no matter if choose to use it or not. All the other stuff like “valet trash”, “package fee”, “technology fee”, “pest control”, “trash reimbursement”, etc.. These should just be included in rent costs point blank.
This is a lame example as I’m typing this at 2am but nonetheless,
Let’s say I’m at the store buying a bag of chips. The chips are advertised for $3.99. I go to buy it but then I’m charged a fee for use of the stores cart (although I didn’t use ), for the person at the register to move the bag across the scanner ( although they get paid hourly), I’m charged a fee for their scanning system to be maintained, a fee for the air that fills up the bag to make it look full, (since bags are never full of chips…), I’m charged a fee for handling said bag from the store to the car, a fee for the store to maintain function of their auto sliding entry doors, and I’m charged a fee for parking in their parking lot. Does that seem fair?