5 Creative Ways to Generate Revenue Using Community Amenities

Facing the challenge of balancing your community association's budget without resorting to significant increases in assessment fees is a common dilemma for board members. Luckily, there's an untapped resource in front of you: your community's amenities. By transforming these existing resources into revenue streams, you can boost your association's financial health without burdening residents with higher fees.

Before jumping into action, ensure you're prepared. It's crucial to:

- Examine your community's governing documents to understand permissible actions and restrictions.

- Conduct a cost-benefit analysis to ensure profitability.

- Consult with your insurance broker and attorney, especially if inviting external vendors or guests.

- Check with your accountant to confirm that new income won’t fall into "nonrelated income," which might lead to tax issues or audits.

- Gain resident support for any initiatives that might spark debate, especially those involving public access.

If you're brainstorming revenue-generating ideas, consider these innovative strategies to monetize your community's amenities.

1. Rent Event Spaces

Whether you have unused kitchens, boardrooms, or meeting spaces, consider renting them out. Both community members and outsiders may pay for access to these areas, especially if they are underutilized. It's a win-win: increase the utility of your spaces and generate income simultaneously.

2. Open Outdoor Spaces to the Public

Does your community house a golf course, sledding hill, ski slope, or river? Charging a fee for public access to these outdoor amenities can turn them into profitable ventures. Some communities successfully invite non-residents for activities like fishing in well-stocked lakes, covering maintenance costs and more.

However, remember the distinction: amenities open to residents alone remain as such, but providing access to the public means you're operating a business.

3. Host Vendors in the Community

Inviting vendors such as fitness instructors or mobile service providers into your community can be lucrative. They often pay to access your residents directly, and events like vendor fairs can further boost revenue. These fairs offer residents exposure to valuable services and can include premium features like guest lectures from financial planners or wellness experts.

4. Repurpose Unused Areas

Many community properties have spaces that go unused, from old basement areas to high-rise rooftops. Consider converting these spaces into rentable storage lockers for residents or leasing them for cell towers. One creative example includes transforming large vacant areas into shared lounge spaces, offering dual benefits of revenue and enhanced communal life.

5. Capitalize on Air Rights

High-rise communities with unused development rights, or "air rights," can profit by selling them to neighboring property owners seeking to expand. In cities with strict density regulations, these rights may fetch a high price, potentially $500 to $1000 per square foot in places like New York City.

These are just some of the possibilities. With a bit of creativity, there are countless ways to optimize your property's existing amenities. By creating new revenue sources, you can alleviate budget concerns while boosting community satisfaction and property values. Embrace the potential, and watch as both your finances and resident enjoyment thrive.