Managing the Hidden Cost of Package Deliveries for Your Property

You already know that managing package deliveries to your building can be tedious and time-consuming. But did you know it can also be expensive?

You might be counting on property staff to manually process every package that’s delivered, but that isn’t recommended as it costs a lot of time and money. So read on to find out what you’re potentially spending on delivery management and how to best rectify the problem.

This post covers:

• The rising cost of package deliveries and management
• How much does managing package deliveries cost?
• Package delivery cost management calculator
• How do apartments handle package deliveries?
• Best package management solution

The rising cost of package deliveries and management

Since the COVID-19 pandemic, online shopping has grown exponentially. In fact, in 2023, 55.5 million tons of freight were moved across the United States.

With that said, the cost of shipping and receiving packages has also increased. While all major couriers have annually increased their rates for delivering packages, receiving and managing such parcels has grown — especially for multifamily apartment buildings.

Contributions to the cost of package deliveries include:

• Staff time and labor costs. Handling packages often falls to property staff, such as front desk personnel or maintenance teams. Accepting, organizing, and notifying residents about deliveries can take hours each week, reducing the time available for other responsibilities. This inefficiency not only increases labor costs but may also impact overall operational effectiveness.
• Security risks. Packages left in unsecured areas are vulnerable to theft, leading to resident complaints and potential liability. While insurance may cover some losses, repeated incidents can harm your property’s reputation, driving away potential residents.
• Space constraints. Multifamily properties must allocate space for package storage. With increasing delivery volumes, existing mailrooms or storage areas can quickly become overcrowded. Expanding or redesigning these spaces represents a significant cost.
• Resident dissatisfaction. Misplaced or delayed packages can frustrate residents, affecting tenant retention. A poor delivery experience can overshadow other positive aspects of living in your community.
• Increased wear and tear. High delivery volumes mean frequent visits from delivery drivers, which can lead to wear and tear on common areas like lobbies, hallways, and elevators. Over time, these repairs can add up.

How much does managing package deliveries cost?

It depends on the number of packages received per day, the number of minutes each package takes to process, your mailroom system, and the hourly rate of the employee managing those packages.

Every time a package is delivered to your building, your front desk needs to accept it, store it, and then retrieve it when your resident comes to collect it. This takes away time from more important tasks such as greeting residents, managing visitors, and maintaining overall building security.

Let’s use the example from above. This 200-unit building receives about 19 packages per day (minus holiday parcels when deliveries aren’t made). It takes the front desk approximately two minutes to process each package. This includes accepting, storing, and distributing each package. The person at the front desk has a salary of $15.00 per hour. In this example, this building’s monthly cost of managing package deliveries is $270, and it requires 18 hours of labor.

When viewed in absolute terms, it’s not necessarily ‘expensive’. But viewed in relative terms, expenses add up. Consider all of the other things that a staff member could have done with those 18 hours: delight a resident, verify a visitor, or secure the property.

These are the tasks that deliver the value your residents pay for and the reason they continue to call your property their home.

Package delivery cost management calculator

If you’re still not convinced, here’s how you can get a closer look at the true impact of package management on your bottom line. With our package calculator, you’ll get an accurate estimate of the costs associated with package management.

This calculator gives you a concrete picture of the minutes and dollars wasted by employees stuck with managing package deliveries. With a ButterflyMX package room, you’ll save both time and money on package management.

How do apartments handle package deliveries?

Apartments handle package deliveries through a combination of traditional and modern methods designed to meet the increasing demand for secure and convenient solutions. As online shopping continues to grow, ensuring packages are delivered efficiently and securely has become a priority for property managers.

Apartments handle package deliveries in the following ways:

• Traditional methods. Some apartments rely on staff or residents to handle them manually. This involves packages being left in a mailroom, lobby, or at the front desk. While straightforward, this method can lead to challenges, such as lost or stolen packages, especially in high-traffic buildings.
• Dedicated package rooms. To improve security, many properties have introduced dedicated package rooms. These secure spaces are accessible only to residents, often using a key or access code. This reduces the risk of theft and keeps common areas clutter-free.
• Smart lockers. A growing number of apartments are investing in smart package lockers. These systems notify residents via text or email when a delivery is made, providing them with a unique code to retrieve their items. This solution is particularly effective for handling high volumes of deliveries and ensuring 24/7 access.
• Concierge and third-party services. Luxury apartments may offer concierge services to accept and manage deliveries. Alternatively, some buildings partner with third-party package management services to streamline the process.
• Integrating technology. Advanced access control systems now enable delivery drivers to securely enter buildings and leave packages in designated areas. This minimizes staff involvement while improving convenience and security for residents.

Best package management solution

The best package management solution is the ButterflyMX Package Room.

Our Package Room is specifically dedicated to storing packages and processing package intake. By installing our package room solution in a spare office or an unused closet, you’ll automate your package management duties. With the ButterflyMX Package Room, couriers no longer have to wait at the front desk for a staff member who has a dozen other responsibilities to juggle.

Instead, all the courier has to do is:

1. Input their designated delivery PIN.
2. Select the resident the package is for in the directory.
3. Place the packages inside the room.
4. Close the door on their way out.

Upon finishing the delivery, the ButterflyMX Package Room notifies the resident via our mobile app. When the resident would like to retrieve their package, all they have to do is swipe to open in the app or use their PIN to enter the package room.

Above all, our Package Room takes a date- and time-stamped photo of all entry events. That way, your staff can review the audit log and effectively address stolen packages if the problem arises.