How Does Valet Trash Increase Net Operating Income?
Looking for ways to increase your property’s net operating income while offering a top amenity at the same time? Consider hiring a valet trash service for your property. This service, which has grown rapidly in popularity over the past 5 to 7 years, is a great financial opportunity for property managers and owners.
So, how does valet trash increase net operating income? Keep reading for more details on valet trash and how property managers can use it to increase net operating.
Monetizing Your Multifamily Resident’s Trash
On the whole, valet trash services are designed to help property managers monetize their trash collection. Here’s how it works in a nutshell for a 300 unit apartment complex.
First, property managers sign a valet trash contract. This will have a fixed monthly cost per unit, call it $10 for our example property, for a total monthly charge of $3,000. Next, property managers add a valet trash service fee to leases. In our example, we will assume this fee is $22 per month, for a $12 spread. As a result, property managers now make the spread each month.
If our example property is 100% leased, this would increase net operating by $3,600 per month or $43,200 per year. A multifamily owner charging a $15 spread with 1,000 total units leased would stand to increase net operating income $180,000 annually using valet trash collection to monetize their trash.
Cost Saving Benefits of Valet Trash Services
Answering the question, how does valet trash increase net operating income, is not all about the spread, however. While the spread is the biggest factor, valet trash also reduces property costs. First and foremost, it lowers the number of required dumpsters at most properties. Similarly, dumpster areas are cleaner as a result of valet trash services. Consequently, there are fewer pest related issues with dumpsters. All three of these are answers to the question, how does valet trash increase net operating income.
Leasing Benefits of Valet Trash Services
While valet trash services create cash flow and reduce property maintenance costs, they also help property managers lease more units and retain residents. What many property managers do not know is that valet trash is considered a top 10 apartment amenity. Leasing agents can highlight the service to close more deals because people want to live at amenity filled properties. This is especially true for millennials, who weigh apartment amenities heavily when deciding where to live.
Free Valet Trash Quote
Interested in a valet trash quote for your multifamily property? Let the BidSource team locate a qualified valet trash company to provide you with a free quote! Just tell us about your property and our team does the rest.