Ancillary income, also called other income or fee income, refers to revenue a property generates outside of base rent. In a multifamily community, this might include fees for reserved parking, pet rent, storage units, application and administrative charges, laundry facilities, or amenity packages like package lockers and covered garages. In retail or office settings, ancillary income can come from vending machines, signage rights, or charges for after-hours utility use.
While ancillary income is typically a smaller share of total revenue than base rent, it can meaningfully improve a property's net operating income, particularly when a sponsor introduces new fee structures or amenities that were previously underutilized. Because much of this income carries little associated expense, incremental ancillary revenue often flows almost directly to the bottom line, making it an attractive lever in value-add business plans. Investors reviewing a property's financials should note how much of total income is ancillary and whether those sources are sustainable, since fee income tied to market conditions or resident turnover can be more volatile than contractual rent.
Further reading: Lightstone's Track Record
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