Key takeaways
- An on-site package room offers 24/7 resident access, full control, and long-term cost savings.
- Outsourced package management eliminates on-site handling but reduces visibility and flexibility.
- Choosing the right solution depends on your space, staffing, budget, and resident expectations.
- The ButterflyMX Package Room balances automation, security, and resident convenience in one system.
Online shopping isn’t slowing down. For multifamily properties, that means a daily flood of package deliveries. Without a smart system in place, those packages can overwhelm front desks, clutter common areas, and frustrate residents. That’s why many property managers are turning to modern package management solutions to keep up.
But when it comes to managing deliveries, you’ve got options: Should you invest in an on-site package room or outsource the entire process to a third-party provider? Both have their pros and cons. The right choice depends on your building’s size, staffing, layout, and resident expectations.
In this guide, we’ll break down the differences between outsourced package management vs. on-site package rooms, explore the benefits and trade-offs of each, and help you decide which approach makes the most sense for your property.
This post covers:
- What is a package room and how does it work?
- What is outsourced package management?
- Key differences between outsourced and on-site package management
- Pros and cons of on-site package rooms
- Pros and cons of outsourced package management
- Cost comparison: On-site package room vs. outsourced package management
- How each option affects staff and operations
- Resident experience and satisfaction
- What to consider before choosing a package solution
- Final verdict: How to decide what is right for your property
- Outsourced Package Management vs On-Site Package Room FAQs
What is a package room and how does it work?
A package room is a secure, designated area in a building where deliveries are stored for residents to retrieve at their convenience. With online shopping becoming the norm, package rooms have become essential in apartment buildings and gated communities to handle the daily influx of deliveries.
Here’s how a modern package room works:
- Delivery drivers access the room, often through a smart video intercom or access control system, and drop off packages.
- Packages are logged and organized, either by building staff or automatically using package management software.
- Residents receive real-time notifications via text, email, or app when their packages arrive.
- Residents retrieve packages securely, often using a PIN or mobile credential to access the room.
When powered by a solution like the ButterflyMX Package Room, this system becomes even more efficient. ButterflyMX eliminates the need for staff to manually sort or distribute packages. Delivery drivers can gain access to the room quickly, and residents get instant alerts when a package arrives, allowing for 24/7 self-service pickup.
With built-in cameras, access tracking, and intuitive software, the ButterflyMX Package Room ensures security, convenience, and a seamless resident experience, all while freeing up staff time and reducing package clutter in lobbies.
What is outsourced package management?
Outsourced package management is a service where an outside provider takes over the responsibility of handling and delivering packages to residents. Instead of storing deliveries in a package room on-site, packages are sent to an external facility or are picked up by a third-party courier who coordinates handoffs with residents directly.
Here’s how it typically works:
- Packages are redirected to the provider’s warehouse or service hub.
- The provider stores and organizes the packages off-site, away from the building.
- Residents are notified when their package is ready and must either schedule a delivery window or pick it up at a designated location.
- Deliveries are completed according to the provider’s availability, often during specific hours or by appointment.
While this hands-off model reduces the burden on property staff and eliminates the need for on-site storage space, it also introduces limitations. Residents may face delayed deliveries, restricted pickup hours, or inconsistent service, all of which can impact their satisfaction.
By comparison, a Package Room from ButterflyMX keeps the entire delivery process in-house but without the overhead. It gives property managers control and visibility, allows residents to pick up packages anytime, and integrates with other building systems for a seamless experience. That’s why many communities are choosing ButterflyMX over outsourced services: it delivers the same operational efficiency while maintaining the convenience and flexibility today’s residents expect.
Key differences between outsourced and on-site package management
When comparing outsourced package management to an on-site package room, the biggest difference comes down to who handles the deliveries and where.
While both models offer relief from manual package handling, only an on-site solution like the ButterflyMX Package Room offers the perfect mix of convenience, visibility, and resident satisfaction without giving up control.
Pros and cons of on-site package rooms
On-site package rooms, especially when powered by a smart package management system like ButterflyMX, offer a self-service solution that keeps the delivery experience fully contained within your building.
Pros
- 24/7 resident access. Residents can retrieve packages anytime, no need to wait for delivery windows or third-party schedules.
- Increased visibility and control. Property staff can monitor activity through access logs and video surveillance.
- Seamless integration. Systems like ButterflyMX work with your existing access control and property management software.
- Enhances property value. A secure package room is a sought-after amenity that boosts leasing appeal.
- Minimal staff workload. With automation, staff don’t need to log or distribute packages manually.
Cons
- Requires space. You need a dedicated, secure room in the building.
- Initial investment. There may be upfront costs to setup your package room, shelving, and software.
- Package volume planning. You’ll need to design the space to handle peak delivery periods (e.g., holidays).
Discover the differences between a ButterflyMX Package Room and package lockers:
Pros and cons of outsourced package management
Outsourced package management services handle deliveries off-site or through a third-party provider, shifting the logistics away from your property team entirely.
Pros
- No space required. You don’t need to dedicate a room or invest in hardware.
- Zero staff involvement. Property staff are not responsible for handling packages at all.
- Simple to set up. Outsourced services often require minimal installation or training.
Cons
- Limited pickup flexibility. Residents may need to schedule deliveries or pick up packages off-site, which can be inconvenient.
- Less control. Property managers have little to no visibility into package status or delivery issues.
- Resident frustration. Delayed deliveries or missed pickups can lead to negative experiences.
- Recurring costs. Outsourced providers typically charge monthly per-unit fees that add up over time.
While outsourced models reduce on-site responsibilities, they can also create service gaps and friction for residents. By contrast, a ButterflyMX Package Room delivers the same operational efficiency while maintaining the control and seamless resident experience that modern properties demand.
Cost comparison: On-site package room vs. outsourced package management
When evaluating on-site package rooms versus outsourced package management, cost is a key factor, but it’s not just about price. It’s about value over time.
On-site package room costs
- Upfront investment. Includes converting a room, adding shelving, and installing a package management system like ButterflyMX.
- Software subscription. Most smart systems have a monthly fee, often based on unit count.
- Maintenance & updates. Minimal with a cloud-based system like ButterflyMX.
- ROI potential. Enhances property value, attracts renters, and reduces long-term staffing costs.
Example: A 200-unit building might spend $5,000 to $10,000 upfront on setup, plus a modest monthly software subscription, but gains a scalable, resident-friendly solution.
Outsourced package management costs
- Per-unit pricing. Services typically charge $15–$30 per unit per month.
- No capital expenditure. There’s no hardware or room buildout needed.
- Ongoing cost with no asset value. You’re paying a recurring fee for a service with no long-term equity.
While outsourced solutions offer low barriers to entry, they add up fast. Over five years, outsourced management could cost tens of thousands more, without delivering the control or flexibility of a ButterflyMX Package Room. For properties looking to boost NOI and amenity value, investing in an on-site system is the smarter financial choice.
How each option affects staff and operations
Package delivery can be a daily disruption, but your choice of system determines just how much impact it has on your team.
On-site package room (with ButterflyMX)
- Low-touch automation. Delivery drivers access the room, log packages automatically, and residents are notified instantly.
- No staff bottlenecks. Unlike front desk-managed deliveries, staff don’t need to sign for or sort packages.
- Better resource allocation. Freed-up time can be spent on resident support, leasing, or maintenance.
Outsourced package management
- Zero on-site responsibility. All delivery logistics are handled by the third-party provider.
- Potential for service friction. If residents miss delivery windows or experience delays, complaints may still land with your staff.
- Limited visibility. Building staff can’t easily verify package issues or troubleshoot without involving the provider.
While outsourced solutions eliminate the day-to-day package burden, they also remove your ability to control the resident experience or resolve issues in real time. An on-site solution like ButterflyMX gives your team the best of both worlds: efficiency and oversight.
Resident experience and satisfaction
At the end of the day, your package solution can dictate how residents feel.
On-site package room (especially with ButterflyMX)
- Always accessible. Residents can pick up packages 24/7 without needing to schedule a pickup or coordinate with staff.
- Fast, self-service access. With mobile app entry and real-time notifications, the experience feels modern and effortless.
- Enhanced sense of security. Residents trust that their packages are stored in a secure, access-controlled room they can visit at their convenience.
Outsourced package management
- Inconvenient pickup windows. Residents may have to wait for scheduled delivery times or travel off-site for pickup.
- Added steps = added friction. Every extra app, delivery appointment, or missed drop-off introduces frustration.
- Lack of familiarity. Residents may feel less comfortable relying on an external service, especially if delivery expectations aren’t met.
What to consider before choosing a package solution
Choosing the right package management approach starts with understanding your building’s unique needs. First, assess your available space. If you have a secure room that can be repurposed or built out, an on-site package room becomes a viable long-term investment. Next, look at daily package volume; high-traffic properties may need automation to keep up.
Consider your staff capacity: Do you have team members who can help manage deliveries, or would you benefit from a more hands-off system? Budget is also a factor, but it’s important to weigh long-term value, not just upfront cost. A one-time investment in a system like the ButterflyMX Package Room can offer years of operational savings and increased resident satisfaction.
Finally, think about resident expectations. Today’s renters want convenience, speed, and self-service. Any solution that adds friction to the pickup process could lead to complaints or dissatisfaction. By taking all these factors into account, you can find a solution that works not just today, but well into the future.
Final verdict: How to decide what is right for your property
While both outsourced package management and on-site package rooms offer relief from the growing package burden, they differ in control, convenience, and cost structure. Outsourced models may seem attractive due to their low setup requirements, but they come with trade-offs, including limited visibility, fixed delivery windows, and long-term recurring costs.
In contrast, an on-site solution like the ButterflyMX Package Room empowers property teams with full control, gives residents 24/7 access, and integrates with existing building systems for a seamless experience. It’s a scalable, future-proof solution that not only enhances day-to-day operations but also boosts resident satisfaction and property value. For most multifamily communities, especially those prioritizing convenience, security, and long-term ROI, the ButterflyMX Package Room is the clear choice.
Outsourced package management vs on-site package room FAQs
What does a package room mean in apartments?
A package room is a secure area within a residential building where deliveries are stored for residents to pick up at their convenience. It’s typically equipped with shelving, security features, and access control.
What does package service mean in apartments?
Package service refers to the way a building handles incoming deliveries, either through on-site storage (like a package room) or by outsourcing to a third-party provider who manages and delivers packages to residents.
How much does a package concierge cost?
Outsourced package concierge services usually cost between $15–$30 per unit per month. In contrast, solutions like the ButterflyMX Package Room involve a one-time setup cost and a lower monthly subscription, delivering better long-term value.
What size is a package room?
The size of a package room depends on the building’s package volume and resident count. For most properties, 10–15 square feet per 100 units is a good starting point. ButterflyMX also provides guidelines to help you design a room that fits your needs.
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