10 Most Commonly Collected Types of Ancillary Income

Multifamily Insiders has conducted a research study on apartment communities’ use of ancillary income and here’s their list of the top 10 most commonly collected:

Here are the 10 most commonly collected forms of ancillary income:  (Percentage shows percent of responders who collected that type of income)

Application Fees92.09%
Late Fee87.05%
Pet Rent82.73%
Early Termination71.94%
Month to Month Fee67.63%
Parking/Garage Fees54.68%
Admin Fees53.96%

Opportunities to Boost Ancillary Income

CORE’s Emily Goodman emailed me a link to a story in Multifamily Executive about boosting ancillary income and said she thought other PTAA members would be interested. I think she’s right:

Annie McClinton smells a rat, and it might be hiding in your basement.

As vice president of Irvine, Calif.–based Multifamily Ancillary Group, which provides contract negotiation and ancillary income audit services to apartment operators, McClinton sees many operators leaving money on the table in the form of seldom-reviewed third-party service contracts.

“We see telecom and laundry contracts passed on with lousy terms and missed revenue all the time,” McClinton says. “A lot of times, operators negotiate in-house and believe they’re getting the best terms and revenue share, but they’re leaving thousands of dollars on the table.”

In her email Emily mentioned that she had worked with McClinton and had been able to generate revenue in excess of $42,000 by renegotiating cable and laundry contracts for her seven Triad properties. To paraphrase Sen. Dirksen, “$42,000 here, $42,000 there,  pretty soon, you’re talking real money.”

More information available at www.magrev.com.