Ancillary revenue is basically a type of revenue-generation model that benefits from services or goods that are not the primary service/product lines of the business or enterprise. Some common examples of ancillary revenue could be an ice-cream manufacturer that also earns money by selling scoopers for ice creams, a book publisher that also sells custom bookmarks and book-reading tables. A printer company selling printer ink is also an example for ancillary income generation. This is by far one of the best strategies to generate additional income for the company. You may also think of it as something similar to passive income methods that a lot of individuals undertake these days. Talking about the role of revenue generation by ancillary model in an enterprise, it allows to diversify the revenue stream of the business. This is helpful because should there be a collapse of the primary product/service market, not all money would come at stake.
Talking about the top sources of ancillary income, one area that outshines most is property management. This has huge potential and can generate huge additional revenue for property owners as well as landlords. It can also be sometimes seen that what started as ancillary income has become the primary source of income. Some of the key areas that can be tapped into for the same are RUBS (resident utility billing service), utility usage reimbursements, fees for upgrades, maintenance of the common area and playground, real estate tax fee, and unit upgrade income.
Among all these, one of the best options is the income from RUBS. This can exceptionally increase the net operating income or NOI of the property owner in thousands of dollars, depending on the size and stature of the property. Property owners are always on the lookout for ways to bring down the expenses, and utilities can be one of the fastest growing categories of expense. The primary objective of RUBS is to assist in the control of rising utility expenses. Such a program would offer investors the right opportunity to keep a check on the efficient operation of apartment communities.
Consider this blog and make sure to choose the ancillary property management service that best fits your personal requirement.
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