Why Apartment Fitness Centers Fail to Protect NOI (And How to Fix It)

Fitness centers are amongst some of the most expensive amenities to build and maintain. Every new treadmill and sunset yoga class costs money. While residents often expect communities to have these amenities, that doesn't always translate to a higher net operating income (NOI). In fact, without careful planning, your fitness amenities may actually hurt your bottom line.

That doesn't mean you should start charging every time someone steps on your elliptical. It's about focusing on amenities that generate revenue rather than drain your budget. This article breaks down how fitness amenities affect financial performance and how to invest in smarter programming and technology.

What Is NOI, and Why Fitness Amenities Matter

Net operating income is how much money your multifamily property earns after covering operating expenses. Calculate it using this formula:

(rental income + other property income) - operating expenses = NOI

Suppose you own a small apartment complex that earns $700,000 in rental income each year. It also brings in an additional $200,000 from pet fees, parking payments, party center rentals, and other income streams. If you pay $350,000 in operating expenses, your NOI would be:

($700,000 + $200,000) - $350,000 = $550,000

Investing in fitness amenities can boost NOI by helping you market your community and attract new residents. For example, busy parents may choose an apartment with a 24/7 gym over one with only a walking trail. Meanwhile, cardio lovers may not even bother touring a community without stationary bikes. A fitness center also encourages residents to stay longer and makes it easier to justify premium rents.

Together, these factors can increase NOI, provided you avoid overspending on your fitness amenities.

How Fitness Centers Can Influence Rent Premiums

When it comes to NOI, wellness real estate and apartment value go hand-in-hand. According to the Greystar 2025 Design Survey, 83% of renters consider fitness centers important or essential, and 68% use them regularly.

Of course, not all fitness centers are created equal. No one wants to pay extra for a bare-bones gym that only has a squeaky treadmill and worn-out resistance bands. Outdated workout equipment can also drive away potential and current residents, especially if it poses a safety risk.

Conversely, residents are often willing to pay higher rents when they come with desirable amenities. RentCafe reports that almost half (48%) of renters will accept an increase of up to $100 for their ideal home, while 20% will pay $101 to $200. These bumps may seem small, but they add up over time, especially for multifamily properties.

Fitness Amenities and Lease-Up Velocity

The last thing you want is empty units dragging down your NOI. They don't generate revenue while unoccupied, and they cost money to maintain. With top-notch apartment gym equipment and other amenities, you can attract a steady stream of prospects to fill these units.

It starts with savvy marketing. Spotlight your amenity offerings on your website and social media. For example, you could create Instagram Reels of your fitness center or post short interviews with your residents. This content will stand out in prospective renters' feeds and help them picture themselves living in your community.

Fitness amenities also add to a positive first impression on tours. Woo potential residents by showing them your workout spaces and spotlighting both the classic and unique equipment you offer. You could even invite them to drop by for a fitness class or a community event. These perks make your property more memorable and enticing. Instead of bland apartment complex #12, visitors will remember your community as the one with essential equipment and a nifty fitness touchscreen.

And don't underestimate the value of loyal tenants. When residents can meet all their lifestyle needs on-site, they're less likely to leave. They may also recommend your community to friends and family with similar lifestyles. That leads to shorter vacancy cycles and higher revenue.

The Retention Challenge: Keeping Residents Engaged

People who live in an apartment with a fitness center often feel more satisfied with their living experience. These workout spaces make it easy for them to prioritize their physical and mental well-being. Instead of driving across town to a crowded gym, they can squeeze in a quick workout right outside their front door. It's an excellent way to de-stress and stay active.

Fitness amenities also build a stronger sense of belonging. If you've ever commiserated with a classmate while a tough instructor puts you through your paces, you know group classes can lead to instant friendships. Residents can also swap tips as they use free weights or try out a new piece of equipment.

Community events are another effective way to build engagement. Organize a family-friendly 5K around the property, or host a virtual step challenge. These events allow renters to mingle with like-minded neighbors and encourage them to hit the gym more often.

As resident satisfaction and engagement grow, renewal rates tend to go up. That means less churn and less time spent recruiting new residents.

However, not all fitness amenities automatically boost engagement. Steer clear of these common pitfalls:

• Not developing programming: If you want to build community, you need to give people a reason to come together. Residents are much more likely to use your fitness center if they can attend a class or participate in a community challenge.
• Keeping rarely-used equipment: Multifamily properties are often working with small spaces and limited budgets. Get the most out of your resources by clearing out clutter. If the hip adduction machine is gathering dust, sell it and replace it with a future-ready solution, whether that's fitness technology or smart equipment.
• Not listening to the residents: Don't assume that you understand what your community wants. Send out periodic surveys asking residents about their fitness needs and ideas for improvements. Maybe they'd love a rowing machine or would take advantage of youth-centered classes.

Common Reasons Apartment Fitness Centers Underperform

You've filled your gym with all the trendy equipment, and it's always clean and tidy. But your NOI won't budge — or, even worse, it goes down. Here are a few reasons why fitness amenities don't always pay off:

• Low usage: Is your gym open at convenient hours? Is it easy to find, or tucked away at the far corner of your property? If residents have to go out of their way to use your amenities, they'll just stay home.
• Lack of programming: Some people love building their own workout routines, but others need more structure. If you don't offer classes or on-demand content, residents may not have enough incentive to keep using your amenities.
• High maintenance costs: Has your elliptical been out of commission for months? Are you on a first-name basis with the fitness repair person? As the repair expenses add up, your NOI dwindles.
• Uninviting space: No one wants to work out in a cramped, windowless gym. A poor layout can also turn off residents. If people have to listen to clattering weights while they're trying to zen out in your meditation space, they probably won't come back.

Actionable Strategies to Boost Fitness Utilization

If you want to change an apartment fitness center, start by expanding your programming. Offer on-demand and guided content to provide structure and guidance for all levels without an on-site instructor. That gives residents more chances to exercise without increasing your payroll expenses. Plus, they can use this content at home or on the road, so they're always engaged.

Scheduled events and challenges can also help people form healthy habits. For instance, you might offer a prize for residents who rank at the top of the leader board in a monthly challenge or complete holiday-themed exercises. If participants have fun, they'll keep working out long after your contest ends and encourage neighbors to join in the next time.

Step up communication, too. Keep everyone in the loop by using digital signage to announce upcoming challenges, events, and community notices. The Flex App also lets you send reminders and words of encouragement straight to residents' phones.

Redesigning Fitness to Impact NOI Positively

With a little savvy planning, your fitness offerings can become an asset and not just another expense.

When you're running a multifamily property, data analytics is your secret weapon. Track when people use your technology amenities and identify usage patterns. Use these findings to offer the perfect equipment and schedules.

Developing a connected fitness ecosystem also boosts engagement. A central platform makes it easy for residents to access digital content and see upcoming events. For example, Fitness On Demand's mobile app lets users tune in to an on-demand Pilates class on their phone, create custom workout plans, and get personalized insights when synced to a smartwatch.

Lastly, look for partnerships and amenities that let you add value while slashing costs. The more amenities and solutions you can consolidate, the more flexibility you have with your budget and ultimately NOI.

Turning Fitness from Cost Center to NOI Driver

Apartment fitness amenities have quickly gone from nice-to-haves to essentials. These perks can help you attract new residents and keep them engaged once they move in. Plus, they look great in marketing materials.

Fitness On Demand can help you offer more flexible and valuable amenities that boost your NOI. We offer over 1,800 virtual classes, including on-demand content from world-renowned instructors and providers. Our convenient app and digital signage also make communication a breeze, no matter how many residents call your community home.

Explore our multifamily fitness solutions today!