Amenity Fees Guide: Examples & Charging Tips

Multifamily communities offer many perks, from stylish units to beautiful landscaping. However, amenities are the key attractions that pull potential residents in. As multifamily communities and hotels compete to attract tenants and guests, many rely on enhanced services that require fees for their upkeep and distinctive aesthetics.

With transparent amenity pricing and open communication, property managers can boost residents' living experiences, build satisfaction and increase property revenue.

Below, we offer some helpful guidelines and tips for both property managers and tenants looking to understand the value and benefits of amenities.

What are amenity fees?

An amenity is a means for landlords to attract and retain tenants. It's usually an additional charge that residents pay as a one-time or monthly fee, or that is already included in monthly rent or lease payments. Amenities might include attractions like a gym, pool, covered parking or entertainment areas. The fees charged cover the costs of these amenities.

Amenities have long been expected and commonplace in the hospitality industry. These include toiletries, in-room coffee, minibars, WiFi, and complimentary breakfast. These fundamental hotel amenities are designed to increase the chances of repeat visits and positive reviews.

Now, multifamily communities follow suit, with amenities becoming increasingly popular to attract and retain residents and generate additional revenue.

However, as anticipated and popular as they may be, amenities can become a point of contention between landlords and tenants. Some tenants who use them sparingly might argue that they are a financial burden and increase their living costs.

Examples of amenity fees in different housing types

Amenity fees vary from one housing type to another and also differ across regions. The following are some average fees for amenities in a range of common housing types.

Apartment and multifamily community amenity fees

• Parking: $50 to $150 monthly for reserved or covered parking.

• Fitness centers: Residents might pay $10 to $50 monthly for gym access. These fees can only be collected from residents who sign up for this amenity.

• Rooftop lounges/community spaces: These are often found in upscale communities and cost from $100 to $300 annually or are included in a packaged monthly fee.

• Pet amenities (e.g., dog areas and pet washing stations): Average fees range from $15 to $40 per month and are often combined with a separate pet rent.

Hotel amenity fees

Although guests expect complimentary basic room amenities, hotels often charge amenity fees, sometimes called "resort fees," that cover access to standard services:

• WiFi: $10 to $25 per day, though some hotels offer it free to loyal customers.

• Pool access: Pools are often included in a daily resort fee, ranging from $25 to $50 per day.

• Fitness centers: These are usually included in the resort fee, though some luxury properties may charge $10 to $25 per day for premium fitness or spa access.

• Parking: Valet parking can range from $20 to $60 per night, especially in urban areas.

Overall, hotel resort amenity fees can add $25 to $50 per night to the room rate, depending on the location and level of service.

Student housing amenity fees

Campus student housing facilities often focus on community and educational amenities:

• Study spaces and computer labs: These are typically included in a general amenity fee ranging from $100 to $300 annually.

• Technology access: High-speed internet, printing services and tech lounges may cost $10 to $20 per month or be included in the annual fee.

• Community events: Many student housing complexes include access to events (e.g., game nights, homecoming, etc.) in the overall resident package or charge a small activity fee of $5 to $10 per event.

In most cases, student housing amenity fees are structured into a tuition surcharge package totaling around $150 to $400 annually.

Vacation rentals/short-term rentals

Vacation rentals often charge separate fees for specific amenities:

• Pools: Pool access is often included, but premium rentals may charge an extra $50 to $100 for pool heating or exclusive use.

• Cleaning fees are typical for short-term rentals like Airbnb. However, depending on the rental size and location, fees typically range from $75 to $300 per stay.

• Other extras: Bike and Moped rentals, firewood or outdoor equipment can add $20 to $50 per rental period.

In short-term rentals, these fees can vary widely depending on the location and level of luxury.

Different types of apartment and multifamily community amenities

Property managers and hospitality professionals constantly seek new ways to attract residents and guests to their communities and hotels. Amenities play a significant role in that process, so understanding the various types of amenities available helps them determine a good fit for guests' and residents' needs.

High-value amenities

Residents in multifamily communities and hotel guests expect specific amenities as part of their living or travel experience. These amenities are sometimes called "high-value" because they are the most sought-after and provide value to residents and guests. They are a key factor in choosing a hotel or multifamily community. These high-value amenities include pools, parking, laundry facilities and gyms.

Convenience amenities

Convenience is always appreciated and is most relevant to a person's daily living experience. The following are some examples of amenities that may not be core but enhance the overall quality of life and offer added convenience.

• Package lockers: This amenity is usually not first on the list. However, with the rise of online shopping, package lockers with 24/7 access are now highly desirable among both multifamily residents and travelers.

• Community WiFi: This is now an essential amenity for hotel guests, whether comped or available for a small fee. Some multifamily communities are also offering it.

• Resident lounges or clubhouses: These spaces provide multifamily residents a break from their apartments or condos to relax, work or socialize. You will indeed find TVs, kitchenettes, comfortable seating and a pleasing environment.

Luxury add-ons

Luxury amenities go above and beyond the primary core group found in most hotels and multifamily offerings. As you climb the rungs of the amenity ladder, be prepared to pay extra for these.

• Rooftop access: Luxury rooftop spaces can be found in four-star hotels and high-end apartment communities. High above the city, guests and residents enjoy a panoramic view, fire pits, BBQ grills, bars and a relaxed environment.

• Concierge services: From limited services, such as receiving resident deliveries and maintenance requests, to extensive services, including personal shopping and transportation bookings, the concierge amenity adds a touch of luxury to a hotel stay or a multifamily community.

• Pet services: More and more people live and travel with their pets, and hotels and apartment communities are willing to accommodate them. Luxury properties are joining the trend and investing in upscale pet amenities. These include dedicated areas where pets can exercise and socialize leash-free, grooming stations, washing stations, pet sitting and pet walking.

Estimated amenity fee costs for apartments

The table below outlines the typical fees for basic and premium amenities found in apartment and multifamily communities and package options offering additional value.

Benefits of charging amenity fees for property managers

Amenity fees mutually benefit both property managers and residents in today's competitive housing market. While residents gain access to desirable features like covered parking and premium facilities to enhance their living experience, they also understand that these fees enable management to maintain high-quality amenities. By investing in these services, residents ensure the amenities remain aesthetically pleasing and in good working order.

Amenity fees benefit property owners and managers in the following ways.

Revenue generation

Amenity fees are added revenue beyond rent and lease payments. When property managers charge for desirable amenities such as pools, gym access and resident lounges, they boost revenue and contribute to the property's bottom line.

Maintenance funding

A multifamily community's maintenance department is usually directly responsible for amenity upkeep. So, charging for amenities helps to supplement maintenance costs for amenity repairs and enhancements.

Competitive advantage

Premium amenities allow a community to stand out from its competitors in a dense rental market. This attracts potential residents seeking a higher quality of living and willing to pay for first-class amenities.

Key considerations and tips for setting amenity fees

When considering whether to charge tenants for amenity fees, presenting the proposition delicately and thoughtfully is essential. Below are some decision-making criteria to consider:

• Tenant preferences: Demographics play an essential part in the process. Younger residents may value social spaces, while families prefer playgrounds and community events. Consider conducting a survey or focus group to assess resident desires.

• Pricing strategies: Research competitor properties to determine if your prices align with local market standards. Then, give residents options with a tiered pricing structure, such as basic and premium. Also, consider bundled amenities for more unique choices.

• Transparency: Being transparent with amenities will build community trust and loyalty. Provide residents with a breakdown of fees, address common questions in advance, and let them know how to save money by bundling amenities.

• Introduce fees gradually: Always notify residents well before fee increases and consider a phased implementation offering discounted rates for the first six months. Explain how the increase will benefit residents in ways that directly improve their experience.

• Market the benefits: Explain amenities as improvements that will save tenants time, enhance wellness, build community and improve their quality of life.

What residents should know about amenity fees

Choosing a new rental residence is an important decision and should be carefully considered before coming to a conclusion.

If amenities are on the table, potential tenants should conduct their own research to determine if choosing a community offering amenities is right for them. Here's what you should know before moving forward:

• Understand your lease: Study your lease to understand what amenities are included in your base rent and what amenities are extra. In addition, determine whether access to amenities is optional. Some properties allow month-to-month or opt-in for specific amenities that offer tenant flexibility.

• Assess fee value: Amenity fees should be scrutinized based on your values and your family's. If possible, only pay for amenities you and your family will use.

• Request fee transparency: Most property managers will be upfront about what fees you will pay for amenities and explain their policy for future fee increases or service changes. If amenities are not mentioned, ask the property manager for a breakdown of included and fee-based amenities.

Building community through thoughtful amenity management

Amenity fees can create a win-win proposition for both multifamily property managers and residents. Property managers benefit from an additional revenue stream, while residents gain access to valuable resources that enhance their living experience.

By offering transparent pricing and custom-tailored amenity options, property managers can build community satisfaction and trust. This enables residents to make informed decisions about which amenities best suit their household needs.

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