📊 Definition
Other Income per Unit measures non-rent revenue generated per unit from sources like parking, pet fees, utilities, amenities, and services. It represents revenue diversification beyond base rent.
The Formula
Expressed as dollars per unit per month or year
Example Calculation
A 200-unit property generated $15,000 in other income last month from various sources:
Where Does the Data Come From?
Other income data comes from your PMS accounting and revenue modules:
- GL Accounts: Revenue accounts for parking, pets, utilities, amenities
- Resident Ledgers: Charges for ancillary services per resident
- Income Statements: Non-rent revenue line items
- Utility Billing: RUBS or ratio utility billing systems
Standard categories include parking, pet rent/fees, utility billbacks, trash fees, storage, application fees, lease break fees, and amenity charges.
Who Uses This Metric?
Asset Managers
Track other income to identify revenue optimization opportunities. Properties with $50/unit other income have room to grow toward $100+ through better fee structures and amenity monetization.
Property Managers
Implement and monitor ancillary revenue programs. Other income growth often has better margins than rent growth (minimal associated costs).
Investors & Lenders
Evaluate total revenue potential beyond rent. Properties generating $150/unit in other income have 10%+ higher revenue per available unit, directly impacting NOI and valuations.
Why This Metric Matters
1. NOI Enhancement
Other income flows directly to NOI with minimal incremental costs. Growing other income from $75/unit to $125/unit on a 200-unit property adds $120,000 annual NOI—at a 5% cap rate, that's $2.4M in property value.
2. Revenue Diversification
Reducing reliance on rent growth provides revenue stability. When rent growth slows, other income can sustain NOI growth. Properties with strong other income (15-20% of total revenue) weather market cycles better.
3. Competitive Advantage
Other income allows competitive rent pricing while maintaining profitability. Charging $50 less in rent but $100 more in other income appears cheaper to prospects while generating $50 more revenue per unit.
💡 Pro Tip
Benchmark other income by category. If you're generating $30/unit in parking but market average is $50/unit, you have $20/unit opportunity. Analyze each revenue stream separately to identify low-hanging fruit.
Frequently Asked Questions
What's a good other income per unit target?
Industry average is $75-150/unit/month depending on amenities and market. Class A properties with parking, pets, and premium amenities often achieve $150-250/unit. Budget properties may see $40-80/unit. Aim for 10-15% of total revenue from other income.
What are the most common other income sources?
Top sources: parking ($25-75/unit), pet rent/fees ($15-40/unit), utility billbacks ($20-60/unit), trash fees ($15-30/unit), application/admin fees ($5-15/unit), storage ($5-20/unit), and amenity fees ($10-30/unit).
How can I increase other income per unit?
Implement RUBS utility billing, charge market-rate parking fees, introduce pet rent (not just deposits), monetize storage and garages, charge for premium services (package rooms, covered parking, EV charging), and ensure all fees are market-competitive.
Should utility billbacks be included in other income?
Yes—utility billbacks (RUBS, submetering) count as other income even though they offset utility expenses. They represent revenue collected from residents, which flows through to increase EGI and NOI.
Do one-time fees count toward other income per unit?
Include recurring fees (monthly parking, pet rent, trash) in ongoing calculations. Track one-time fees (application fees, lease break fees) separately—they're lumpy and distort monthly averages. Report both recurring and non-recurring other income for full picture.
Maximize Other Income Potential
BubbleGum BI tracks other income by category and benchmarks against portfolio averages via our financial dashboard—identifying revenue optimization opportunities to boost NOI.
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