By Laura Quirarte
Ancillary income, or income derived from non-rental sources, is sometimes presented as passive income or even “found money.” Nothing could be further from the truth! Each ancillary income source, whether it takes the form of fees, premiums, or amenities, represents a thoughtful strategy on behalf of the owner or negotiated contract. And, as many know, good negotiating can take a lot of planning and work.
As a Client Account Manager at RealtyCom, I’m focused on access, marketing and service partners providing Television, Phone and Internet products to multifamily housing. While each provider is different in how they choose to partner with owners, RealtyCom clients generally have a revenue-share model that creates ancillary income to the owner on a monthly or quarterly basis. The owner is incentivized by the provider to receive additional revenue, as resident subscriptions are increased via their marketing efforts.
The idea being the more Provider is marketed by the owner, the more subscribers and the more revenue to the Owner. Once an Owner signs an agreement, most providers will assign a local representative to work with the property team in an effort to increase subscriptions (at no cost to the property) by:
● being a resource for residents […]