The Importance of Reliable Internet Access in Multifamily Housing
In today’s digital age, internet access has become as essential as utilities such as water and electricity. Its sudden absence can disrupt daily life significantly, affecting everything from work to entertainment and even home security. Recent trends indicate that our reliance on internet connectivity is only increasing, particularly among renters who use not just traditional devices but also a wide array of smart home technologies.
Growing Dependence on Internet Connectivity
According to a report by Deloitte, the average household in the United States is now equipped with over 20 connected devices. This growing reliance means that for many residents, losing internet access entails much more than just missing their favorite shows; it can mean losing control over essential home functions. Particularly in an era where remote work is prevalent, a disruption in internet services poses a serious challenge, transforming a minor inconvenience into a major issue. Gallup research reveals that 41% of U.S. employees are currently working either fully remotely or under hybrid arrangements, emphasizing the critical role that stable internet plays in maintaining productivity.
Challenges with Traditional Internet Service Providers
Landlords often presume that the responsibility of providing internet service rests primarily with Internet Service Providers (ISPs). While ISPs are indeed eager to accommodate new residents, the experience they offer isn’t always satisfactory. Many large ISPs suffer from poor customer satisfaction ratings, with common complaints including long-term contracts, hidden fees, and sluggish customer support. These negative experiences often reflect poorly on the properties themselves, creating a frustrating entry point for new tenants.
For example, in a recent survey of companies noted for dismal customer service, AT&T ranked tenth, while Comcast earned the top spot. The dissatisfaction associated with these provider experiences can significantly hinder a landlord’s ability to make a positive first impression on potential renters.
Revenue Potential from Providing In-Building Internet Services
Landlords who choose to outsource internet services may overlook a valuable opportunity for additional revenue. Brian Higgins, CEO of Aditum Connect, points out that many property owners are surprised by the financial benefits of providing internet directly to their tenants. Aditum Connect offers a profit calculator that allows landlords to visualize the potential revenue from selling internet service. For instance, a residential building with 150 units charging $75 per month could see an annual net operating income of approximately $72,000. Initial installation costs can range from $30,000 to $70,000, depending on the requirements for wiring, but landlords often recoup this investment within a mere five months.
How Infrastructure Investment Pays Off
Setting up a dedicated internet infrastructure involves an upfront investment, primarily for new fiber-optic cables. However, this expenditure often yields quick returns, with many landlords breaking even within 9 to 18 months. Notably, older properties tend to turn a profit in their second year, while new constructions may do so even sooner.
Innovative Pricing and Service Models
Taking ownership of the internet provision allows landlords to exercise greater flexibility in pricing and service offerings. Some property owners provide basic internet as a complimentary feature, fostering goodwill and distinguishing their properties in a competitive rental market. Others might enhance their internet services as part of lease incentives or renewals, such as providing upgraded speeds or complimentary periods of service.
Creative bundling options also exist, pairing internet access with other amenities like smart home solutions, streaming service subscriptions, or tech concierge offerings, addressing diverse tenant needs effectively. As Higgins notes, about one-third of landlords collaborate with Aditum Connect to provide free internet as a resident perk, with others offering introductory periods free of charge to increase lease signings.
Conclusion: Meeting Modern Rental Expectations
In today’s rental market, access to high-quality internet has evolved from a luxury to a necessity. Renters expect fast and reliable connectivity that supports multiple household devices without interruption. With manageable capital investments, landlords can significantly improve internet accessibility while tapping into a previously unexploited revenue stream. By delivering superior internet capability, landlords not only enhance tenant satisfaction but can also create a profitable long-term utility that benefits everyone involved.
