Businesses across the country — including condos and HOA communities — are experiencing rising costs and budget increases. From supply chain shortages and higher construction costs to labor shortages and inflation, it’s impossible to avoid a budget increase this year.
But what if there was a way to generate additional income to offset these financial changes or boost your reserves? Fortunately, there is more than one way to make this happen!
What is ancillary income for HOAs and condos?
Every year, your HOA or condo association budget considers your community income and expenses. Most revenue is earned through residents and community fees, but ancillary income is like a bonus!
Ancillary income is extra revenue that is not earned through your primary services or product. It is not a regular monthly income, which is why it is not factored into your budget. However, it can certainly provide a plush financial cushion, especially during budget increases.
How can ancillary income help with condo and HOA budget increases?
Your condo or HOA budget could earn ancillary revenue through amenities, parking, or additional community services. Beyond additional income or stronger reserves, ancillary income also benefits your community with greater resident satisfaction and better community ratings!
Your community has some awesome amenities. By renting out spaces or items, your community can earn valuable ancillary income while your residents utilize convenient solutions. This is a great opportunity to get creative and ask your residents what they want! From popular amenities like pools and coworking spaces to unique ideas such as party supplies or guest apartments, amenity reservations can truly help your community flourish!
Here are some ideas of things to rent in your community:
- Pool cabanas
- Specific gym equipment
- Picnic pavilions
- Clubhouses or event spaces
- Party supplies like chairs and tables
- Coworking spaces
- Community kitchen or BBQs
- Bicycles, moving vans, or vehicles
- Storage space
- Sports equipment, such as tennis racquets and balls
We know what you’re thinking, “How can I manage all of these amenities?” We have a simple software solution: Amenity Reservations by Community Boss. Generating ancillary income doesn’t have to be complicated; Community Boss collects payments, automatically refunds deposits, and even sets amenity time limits. Plus, it’s an incredibly user-friendly platform!
How Parking Boss can create ancillary income with paid guest and resident parking
Whether your parking lot is an organized grid of lines and cars or feels cramped and overcrowded, you can transform your parking into a lucrative source of ancillary revenue with these four ideas.
Paid guest parking:
The best place to start earning ancillary income for your community is with paid guest parking. Provide your guests with a limited amount of free parking (per vehicle or per unit) before charging. Some communities have harnessed this strategy to earn up to $3,000 per month from guest parking!
Premium or reserved resident parking:
Do people want to park right by their front door or closest to the pool? Allow residents to pay an added fee for premium or reserved parking spaces.
Parking garages:
Covered spaces or parking garages can also be a premium in HOA and condo communities. Earn ancillary income with paid parking spaces under carports or in parking garages.
Paid parking violations:
This is a quick and easy way to alleviate your HOA or condo budget increase. When a resident parks in a guest parking space, or when a guest doesn’t pay for guest parking, you can charge a parking violation fee. (Bonus: Enforcing violations also encourages people to follow the community rules.)
Not sure how to get started with parking enforcement? Try Parking Boss by Community Boss! This all-in-one parking software provides resident parking decals, digital guest parking passes, smart parking maps, and cutting edge parking enforcement data. Not only will this promote ancillary income, but it also makes parking so much easier for your residents and guests!
Other Ways To Earn Ancillary Income For Your HOA or Condo
Like we mentioned earlier, ancillary income is a creative way to combat condo and HOA budget increases while also serving your community with convenient solutions and services. Spark your creativity with these bonus ideas:
Community events:
Host seasonal or themed events to increase community engagement and earn ancillary revenue. Try drink tastings, cookouts, kid’s camps, or food trucks.
Service bundles:
Provide your residents with bundled television, phone, and internet services with a community discount.
Referrals:
Partner with other local businesses to offer great deals on moving services, storage facilities, wellness subscriptions, or car rentals.
Concierge services:
Dry cleaning, trash valet, recycling, pest services, and home cleaning may be a valuable and convenient add-on for your residents.
Vending machines:
Strategically place vending machines throughout your community as an easy way to earn extra income. Put one with drinks in the gym, one with snacks by the pool, or one with convenience-store items in your office or clubhouse.
Storage:
Offer paid storage options for your residents, from a large storage unit for furniture or a small closet for outdoor kids toys to a small parking spot for bicycles.
Conclusion
Ancillary income is your ticket to combat rising budget increases, and Community Boss can help you generate ancillary income! Utilize our Amenity Reservations and Parking Boss tools to start generating ancillary revenue today. Get started by scheduling a demo.
Note: Some states in the U.S. have specific requirements and restrictions about how to utilize this revenue, such as for reserve funds. Charging for amenities is a legal and effective process, however we do advise to check your local laws for more information about how to implement this process into your community.
.svg)
.svg)
