Is Hub by Amazon the Answer to Tenant Package Glut?

by | Oct 23, 2017 | Rental Property Management Tips

Online retailer Amazon is reporting that a number of major property management companies have signed up for its Hub service, a system that stores tenant packages, according to a news report.

Tenants can access the Hub at any time, freeing up leasing agents who otherwise have to extend their hours to accommodate tenants’ work schedules. And those leasing agents no longer have to jockey for space in the office. That’s especially helpful around the holidays when package storage woes reach epidemic proportion.

Two years ago, a number of large property management firms reported that the increasing popularity of online shopping was forcing them to adapt, including constructing or expanding mail rooms, and working out email or text alerts to encourage tenants to pick up their wares. One landlord reported that its tenants had received almost a million packages in one year.

The Hub by Amazon locker system is not free. Participating landlords must pay a one-time installation fee of around $20,000. However, the locker can accommodate packages from other services and retailers, not just those from Amazon, which relieves pressure on the leasing staff. Landlords report that handling one tenant package requires about 10 minutes of employee time, and that adds up quickly.

Those deliveries likely will increase now that Amazon and other retailers have started to deliver grocery items. With the fear of theft looming, a secure package system could be an attractive amenity for tenants.

Landlords have to take into account the space needed for the Hub — starting at around six feet and available for inside or outside use — and the upfront cost, balanced against the need to extend office hours, hire temps, or convert office space into temporary storage.

Hub now serves over 850,000 apartment units, according to the report.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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