We would be offering our "American Blue" membership to the residents/tenants. This is not one of our high-priced, VIP Membership as described on our main website; instead, it's a more economical and valued-membership. It is based on a monthly membership fee and Pay-As-You-Go rates.
American Blue Membership. To understand, first let me tell you how the company, and the American Blue Membership typically works for the general public:
Now, our proposal to partner with you would be structured this way:
PARTNERSHIP. Opulent VIP LLC would become a business partner with you, the management company, to cover all apartment complexes and units that the company manages and operates, in order to provide our services to all residents.
MEMBERSHIP FEE. The individual apartment complex or property would be covering the monthly membership fee of $79.00 $69.00 per unit. We want to ensure a win-win situation for all parties. That said, an additional discount may be negotiated depending on the length of the courtesy agreement chosen, and can vary on the first-year to allow for better cash-flow management from the complex until rents are raised, if that is what management wants.
Let us give you an actual example. This was actually suggested to us by a management company... and it was a great win-win solution. The management company was worried about raising rents by $69 right away, so they suggested a 6-year deal, in which the first year the membership fee would be $35, and slowly increased to $65 by year 6. This solution let the management company raise rents slowly to cover the investment.
The membership fee is payable for each unit in each property, regardless of vacancy at the time of the agreement. The fee is payable monthly and becomes part of the operating budget.
LOW DONATION FEE. Then, the Resident will pay for services as needed when they contact us for tasks. There is no obligation from them to use our services however. When they do contact us, their monthly membership fee is already covered by the apartment, so no need to worry about that. They just pay the low $23.00 donation fee per task, for whatever they request. Around Christmas time, Opulent VIP will use part of those funds to help local families in need. Residents will be able to nominate a person in-need that they personally know are struggling.
MANAGEMENT FEE and/or INCREASED NOI. You, the management company, will be entitled to an optional Management Fee, for overseeing the partnership. Lets be clear about this: there is no actual work required from the management company... this management fee is simply for overseeing our partnership. The amount of this fee is determined by you, the management company, and we call it optional because there's no need to implement it at all, although it would make business sense to do it.
The amount is determined by the difference between our advertised monthly membership fee ($79.00), and the monthly membership fee that we agree upon in our partnership. For example, if we agree upon $65.00, then the difference ($14.00) would be the management fee, should the management company want to raise rents by the entire $79.00. In this case, the management company, by raising rents by $79.00 per unit, would not only be providing a fantastic service and increasing property values, but would also be entitled to a $14.00 per unit management fee.
Now, another option is for the management company to simply take those $14.00, and split them, say $7.00 for the Management Fee, and leaving the other $7.00 as profit, which increases NOI and makes the Clients (the owners) happy.
@ Is the monthly membership fee necessary?
Absolutely. Without it, we would not be able to provide this service. Our entire business model, logistics, and operational functioning depend on the commitment to this model.
@ How come the membership fee is paid by the complex, and not the tenant?
There are many reasons for this. Mainly, because of the logistics involved in bringing the service to all of your residents, it is simply necessary for the complex to cover the monthly membership fee instead of the tenant. It also lets the tenant have a fantastic price for the service they receive, and after all, the goal is for them to have access and enjoy the service. Finally, the complex must pay for the membership fee because it shows commitment from the management company towards our service, our company, and what we want to accomplish.
@ There are certain properties where I will have trouble covering the membership fee, since I cannot increase rents too much. Can the membership price vary per property?
Maybe you have certain properties in which you cannot raise rents to cover this investment. That's OK. We will work around it and we will make it work for you and your needs! We will customize the plan so that we can ensure a win-win situation for all of us.
@ Is the membership fee payable by the apartment complex?
Yes, each month Opulent VIP will invoice each apartment complex. The invoice will be due on the 1st of the month for that upcoming month. Invoices can be paid electronically or the old-fashioned way (by check).
@ If each complex eventually raises rents to cover for this service, then in essence, the service is free to us, correct?
Yes. THE SERVICE LITERALLY PAYS FOR ITSELF! We fully expect you to incorporate the cost of this investment into the budget, and pass along the cost of the monthly membership fees to the tenants in the form of higher rents, therefore, yes... the service pays for itself.
@ How many personal assistants do you anticipate having for each complex?
That depends on the specifics of your company, how many units you have, how many properties you have, and where they're located. Ideally we would like to have 1-3 teams of two personal assistants per property.
@ Why does the tenant have to pay an hourly fee?
That's how our American Blue Membership, and our entire business model works. Tenants pay a low $23.00 fee for 30 minutes of service, which is a fantastic deal, and it lets them "buy-into", and appreciate the service compared to it being free. Besides, the fee is a "Donation", and will go right back to their local communities to help families in need at Christmas time. That said, if you envision the service being free for residents, we can arrange that.