How Much Does It Cost to Set Up a Package Room in an Apartment Building?

The convenience of online shopping has made it extremely popular nowadays. As a result, it turned package management from a routine amenity into a major logistical issue for apartment properties. In response, the dedicated, secure package room has become a necessity. And having seamless mailroom management is now the norm.

Moving forward with this amenity requires a clear budget that accounts for both one-time construction costs and ongoing expenditures. This guide provides a detailed breakdown of the cost of establishing an apartment package room, based on current industry estimates and technology needs.

Overall Budget Estimate

A dedicated package room is a more affordable multifamily package management solution than smart lockers, as it often utilizes existing space. The total cost is primarily determined by the level of automation and security implemented.

Based on industry analyses from Pipl Systems, property owners should anticipate two main cost tiers for the initial setup (Capital Expenditure, or CapEx):

In comparison, fully integrated smart locker systems typically cost $15,000 – $40,000 for hardware alone, reinforcing the package room's cost-efficiency.

Capital Expenditure (CapEx): The Build-Out Costs

CapEx covers all one-time expenses required to convert a space into a secure, functional package room.

Room Conversion & Infrastructure

This involves renovating an existing space (like a storage closet or former office) for high-volume use. While costs are highly variable depending on the room's current condition and local labor rates, key elements include:

• Space Preparation: Renovations, flooring, lighting, and paint needed to repurpose the area, including necessary electrical work for access control hardware and cameras 
• Storage Hardware: Purchasing and installing industrial-grade shelving, racks, and storage cabinets to maximize package volume capacity.

Security & Access Control Hardware

This is the most critical hardware investment, as it ensures only authorized personnel (couriers and residents) can enter.

The estimate for the secure door lock hardware is based on figures published by ButterflyMX. The cost for the Entry/ID System is typically integrated into the overall CapEx tier Pipl Systems, while the necessity of video surveillance is highlighted by Swiftlane.

Operational Expenditure (OpEx): The Ongoing Management Costs

OpEx includes all recurring fees, maintenance, and the true cost of managing the packages on a day-to-day basis. This is often overlooked but determines the long-term success of the package room.

Installation and Labor Fees

While a one-time fee, the cost of specialized labor can be substantial. Budget for certified low-voltage technicians and electricians to install and integrate the access control, camera systems, and network wiring. This labor can often exceed the cost of the hardware itself.

Mailroom Management Software Fee

The most essential OpEx is the software subscription. Software is what converts a secure room into a Smart Package Room by providing a digital log, automated resident notifications, proof of pickup (PoP), and an audit trail.

• Mailroom Management Solution: Software costs typically follow a monthly subscription model, priced either per site or per unit. For example, a dedicated mailroom management system might charge a Plus Plan fee of approximately $67/month (for smaller properties) or a Pro Plan fee of approximately $117/month (for sites needing advanced features) based on current industry rates seen on the Parcel Tracker Pricing page.
• Per-Unit Pricing: Some competitors charge a fixed fee per apartment unit per year (e.g., $30–$42 per unit/year for some providers, as referenced by ButterflyMX).

Maintenance & Utilities

Ongoing costs also include annual hardware maintenance, replacement parts, and the recurring cost of electricity and high-speed internet required for all smart access devices and cloud-based software.

ROI: Why the Investment Pays Off

The investment in a package room is rapidly justified by a reduction in "soft costs" (staff labor and liability) and an increase in resident satisfaction.

Reduced Staff Time

Package management significantly drains staff time. According to the National Multifamily Housing Council, 68% of property staff spend up to four hours weekly dealing with package deliveries, storage, and retrieval.

A modern mailroom management solution automates logging, notification, and pick-up, transforming the cost of staff time into pure ROI.

Increased Resident Value and Retention

A secure, 24/7 package amenity is a powerful retention tool. The National Apartment Association (NAA) found that 31% of residents would pay more to live in a community that made getting packages easier, with many willing to pay between $5 and $10 extra per month for the service. This added revenue stream often offsets the monthly OpEx.

Liability Reduction

The digital audit trail created by access control logs and package management software eliminates costly disputes over missing packages, protecting the property from liability.

Securing the Last Yard

The total cost of setting up a package room is a combination of CapEx (hardware and construction) and OpEx (software and maintenance). The choice is not between expense and savings, but between automated efficiency and manual chaos.

Ignoring the ongoing investment in modern mailroom management software will inevitably lead to staff time drain, resident frustration, and ultimately, failure of the package amenity. To ensure success and future-proof the investment, choosing a dedicated logistics system is paramount.

Learn how professional mailroom management transforms security and efficiency in your package room and request a tailored quote today!