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Where Do We Draw the Line?

Where Do We Draw the Line?

I always feel like such a mess when I carry my suitcase onto an airplane.  I prefer boarding with just a purse and jacket in hand because I can move quickly and don’t feel like I’m in anyone’s way.  However, when I have a small suitcase, I have to worry about pulling it in and out of bathrooms, rolling it down the tiny airplane aisles, and being able to lift it in and out of the overhead compartment without dropping it on someone’s head (or my own).

So why do I even bother carrying on luggage?  Well, it’s nice to save some time spent in baggage claim and I’m able to relieve all stress related to the airline losing my luggage, but the primary reason is now to avoid baggage check fees.  At this point I can’t even remember which airline started it, but whoever came up with the idea of baggage fees is an evil genius.  Almost every airline quickly followed suit, and because you can’t always get away with carrying on your suitcase, in 2010 those airlines made more than $2.1 billion dollars in profit – just from baggage fees.

When every headline in the news was about airlines going bankrupt, I was a little more understanding.  But have you noticed that baggage fees just keep increasing despite the profits?  They started with first bag free, second bag $15.  Then they moved on to first bag $20, second bag $40.  Now there are cases where your FIRST bag can cost up to $35 dollars.  I’m on the verge of just not bringing a suitcase when I travel and buying everything I need when I reach my destination!

So long as you aren’t one of the decision makers at an airline, you probably agree with me.  But have you noticed something similar happening in our own industry?  Every day in my Google Alerts about the Multifamily Apartment Industry, I see articles from around the country about how renting is the new buying and vacancy rates are at an all-time low.  We all know it’s a landlord’s market and that means higher rents, but what’s with all of those extra fees that keep popping up?

Just today I was told about an apartment community that was going to charge someone $1000 dollars to use the elevator for four hours to move in.  My jaw dropped.  $1000???  I’ll live on the first floor, thanks.  Someone please tell me: is this normal?  I feel like most of the apartment communities I work with on a daily basis don’t even charge residents to use their elevators for moves, but I certainly haven’t heard $1000 before.

It’s understandable that in today’s market there aren’t as many freebies or discounts being handed out, but is it necessary to charge extra for utilities, cable, internet, parking, amenities, etc., on top of having your rent increased?  If you require a deposit for an amenity, sure I understand.  This protects you against no-shows wasting time and resources, as well as providing some insurance in case a resident carelessly damages something.  But where do we draw the line?  The apartment market is in a great place because buying a home is out of the question for many people in today’s economy.  However, when people are in a position where they have more of a choice, will these extra fees come back to bite our industry in the butt?

We’d love to hear from all sides of the story.  Managers, how does your community decide on fees?  Is there a limit to how much you will charge or what you charge for?  Residents, do you think it’s fair for communities to charge all of these additional fees even as your monthly rent increases?

 

 

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