What to Expect When Adding Valet Trash Service at an Apartment Complex
Adding valet trash service at an apartment complex is a significant change from traditional waste management services and practices. This is true for both residents and property managers. While it is a luxury service focused on convenience, it is a disruption to the status quo. Like most changes that challenge the status quo, hiring a valet trash company will create both positives and negatives.
Since valet trash has surged in popularity during the pandemic, Property Manager Insider has put together this guide to help property managers looking to add the service in 2021. Here are 5 things property property managers can expect if they decide to hire a valet trash service for their property.
Mixed Reactions From Residents
While marketing for valet trash service says it is one of the most in demand apartment amenities, that claim is not always supported by resident reactions to the service. Residents pay increased rent or fees for the service. Even though the cost of valet trash service is fairly reasonable at $25 to $35 per month, it is still an additional expense for residents. As result, property managers can expect pushback and some complaints from some residents. The opposite is also true, and some residents will love the new service.
Another reason for mixed reactions is the presence of trash valets. While the best valet trash companies will have professional, uniformed valets, the service still brings additional people onto the property. As a result, it is important property managers reputable valet trash service providers and inform residents of the safety and cleanliness benefits of the service.
A Cleaner, Greener, Multifamily Property
While the number one benefit of valet trash for residents is convenience, it also makes multifamily properties and communities cleaner and more environmentally friendly. Valet trash service makes apartments cleaner because residents no longer take their own garbage to the dumpster or trash room. This eliminates common problems with trash bags and other items being left everywhere except in the actual dumpster. It makes properties greener because it encourages residents to recycle by offering specific cans for recycling items.
In addition to cleaner dumpster areas and trash chutes, most valet trash companies also do litter collection and pickup. For example, if valets are collecting trash cans from doorsteps and notice garbage or trash in the landscaping, they will pick it up. This an incredible value added service that all residents and their guests can enjoy.
Increased Net Operating Income
While valet trash benefits include cleaner properties and attracting residents who crave convenience amenities, the biggest benefit to property’s is financial. When a property hires a doorstep trash company, they agree to pay a fixed monthly cost for every unit at the property. This cost generally ranges from $8 to $15 per unit depending on the quality of service provider, frequency of service, and size of the property. The exact price should always be included in the valet trash contract.
Property managers will often charge residents mandatory valet trash convenience fees of $25 to $35 per month. This split of $10 to $27 per unit would generate an additional $3,000 to $8,100 per month of revenue at a 300 unit property. From an accounting perspective, since a property is adding the service, this increased revenue would flow straight to net operating income.
Another benefit of increased net operating income is overall property value. If adding valet trash service at an apartment complex with 300 units boosts NOI by $60,000 annually, the entire property becomes more valuable.
Early Service Challenges
In general, property managers adding valet trash service at an apartment complex can expect some early challenges with the service. This is because there is a learning curve involved for both residents and property managers. It is not uncommon for resident’s to express concern and file complaints about the new service.
One way property managers can get ahead of these challenges is hosting a town hall meeting about the new valet trash service. Invite the valet trash company to attend and bring trash valets who will be working at the property to attend. This is a great way for residents to become more comfortable with the service provider and learn about the benefits of valet trash first hand.
Property managers should also plan to communicate details of the service to residents who can’t attend this meeting. Email marketing, social posts in your property’s Facebook group, and informational flyers are great ways to get the word out to residents.
Questions From Residents
Due to challenges when adding valet trash service at an apartment complex, property managers should be prepared for resident’s questions. A quick, accurate answer is a great way to mitigate resident’s concerns over the new service. Here are a few examples of potential questions residents will ask:
- I don’t want this service. Can’t I just take out my own trash?
- What happens if I miss my doorstep trash collection window? ?
- What do I do if I have trash I need collected over the weekend?
- Why are we adding this service and why am I paying for it?
- Who are these trash valets that are coming to the property?
While many residents will ask these questions when adding valet trash service at an apartment complex, property managers can anticipate future residents asking them as well. As a result, answers to these questions, and other frequently asked valet trash questions, is beneficial knowledge for any multifamily property manager.
Get A Valet Trash Proposal
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