Should You be Looking at New Services and Revenue Opportunities?
As we covered previously, tenants have a particular laundry list of things they’d like to have in their new rental apartment or condo. One of them is Free Wifi.
For those landlords who shy away from free anything and adhere to the bare bones ROI model, free Wifi won’t rock their world. Consider how the bare bones revenue model might be leading to a downward spiral in revenue and business sustainability. It’s time to look into these value added strategies and earn more revenue and higher rental yields.
Free Wifi: A high speed broadband Internet service managed by a property manager which creates Wifi connection accounts for your tenants use.
Free Wifi was one of those benefits we covered in the What do Renters Want? post. Young Millennial renters find any electronic service/feature attractive – from electronic unit entry access to Free Wifi. The words choice, savings, and freedom are key values they respond to.
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In fact, such systems are more common now in multifamily buildings because of the revenue opportunity alone. The property management company buys or leases the core high speed Internet service and serves that out from a central transmission point.
How to Improve Your Rental Property Revenue
The point to many add-ons they like, is in how you can charge a higher rent or charge for extra services. Growing your rental value proposition isn’t easy, but this one has more business potential than you might expect.
Before you offer any freebie to your renters, you have to work out the cost/benefit analysis. There may be layout costs and maintenance tasks associated with this.
For current tenants, Free Wifi may not be as valuable since they likely have their own provider. However, for attracting new renters, the benefit of free Internet service might grab their undivided attention. Add it to your rental ads and you’ll see a jump in responses.
Keep in mind you could offer Free High Speed Internet and then offer a paid upgrade package for tenants who want higher speed — an easy way to boost your rental yields. There are tenants who are all in on the Internet as a cost saver for entertainment and communications. They will need super high speed bandwidth to satisfy their wants.
34% of property managers rated Wi-Fi access as number one renter benefit, (2) high-speed internet (25 percent), followed by and ensuite laundry (13%) — Xfinity Report
Other Freebies You Might Offer Your Tenants
- Cable TV (bundle service with Free Wifi)
- Satelite TV
- Wifi connected digital security system
Out of all the freebies you can offer, Free high speed internet service has extended value since tenants could also make long distance phone calls cheaply or free. Additionally, they can buy Apple TV and get the television channels and Netflix channels they want.
Netflix, and other online entertainment services are highly attractive. In fact, the biggest consumer trend is to get rid of costly, unfulfilling Cable tv contracts. The lack of value that Cable/Satellite providers are delivering is an opportunity for you.
Offering Free high speed Internet and wifi is a great one two punch that puts your condo/apartment front and center with high quality renters on the hunt.
Costs, Effort and Maintenance
Of course, the added cost and added workload have to be factored in. And you may want to avoid presenting freebies to bargain hunting renters. It’s all about offering higher value to a higher quality renter demographic who is willing to pay a premium price and who will be more loyal because your apartment/condo has these features they can’t get elsewhere.
If the Wifi electronics and internet service go down, it may lead to middle of the night phone calls. However, if you are using property management software, it will encourage sms or email maintainence requests. That way you can continue getting regular sleep.
Free Wifi in Multifamily Buildings
If you have a number of units within a multifamily building, it may be possible to set up a central service feeding each unit’s own Wifi router. You pay for one high speed service and connect all units to it. You’ll need range extenders and repeaters along with the usual internet service hardware devices.
Of course, some families may hog all the bandwidth when playing online games or downloading high definition full length movies. You can solve that by limiting the bandwidth of each unit.
Free Wifi Systems for Rental Properties
There is equipment cost and you’ll need a service professional to install and set it up. Check out services such as CloudWifi who offer a variety of fast residential and commercial Wifi systems in Canada. They Multi-gigabit hyper-optic network exclusively for high density buildings, perfect for multifamily building property managers in Canada.
MadebyWifi is a New York based provider of high-end, low maintenance wireless networking and Internet solutions for events, businesses and residential properties. They can assess your opportunity and you can get educated on how to maximize your Free Wifi opportunity.
Although there’s plenty of features and benefits tenants want, Free Wifi can put you at the real center of many young tenant’s lives. Let’s not forget that many older renters enjoy the very same high speed amenities. This opportunity might be more attractive and create the positive cash flow you seek.
While you’re here, take ManageCasa for a test drive.
It’s a great way to learn more about modern property management and the potential of cloud based property management solutions for your company.
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