thought leader Provided by Quantum Fiber
Multifamily property owners are focused on driving increased net operating income, but they may be overlooking important amenities that can help.
As the market struggles with economic uncertainty, high interest rates, and weak investment performance, multifamily property owners are focused on increasing value through increased net operating income. Fiber Internet is one of the opportunities to do just that.
claim so Dan O’ConnellVice President of Consumer Sales quantum fiber, Multifamily property owners who subscribe to bulk real estate services say they are finding valuable amenities with stable costs and limited capital investment. This is a huge benefit for multifamily property owners looking for a little extra NOI in a tough market.
Win-win NOI
Multifamily property owners can improve their NOI in two ways: through increased revenue and operational efficiency. “A very easy way to do that is to bring fiber optic infrastructure into a community and contract out services that provide that functionality to all residents in the community,” he said. says. Fiber internet can drive net operating income from both ends.
On the revenue side, fiber helps attract and retain tenants and drives rent growth. O’Connell said he believes three-quarters of multifamily renters would be willing to pay a premium for high-speed internet if it was included and available through the property. “The market recognizes and appreciates that fiber-based internet service is included as an amenity they are willing to pay for,” he explains. “That drives revenue growth and contributes to increased NOI.”
In addition, multifamily property owners also have the option to monetize fiber internet as an additional service. Residents will have access to lower-cost internet services than they would be able to use independently, and owners will be able to generate new sources of income. It’s a win-win.
In terms of cost savings, fiber optic internet from a Tier 1 trusted provider has kept costs stable and consistent throughout the contract term. It does not include annual increases, so the price of his internet service will remain the same for the duration of his 10-year contract. This provides valuable stability in a market where operating expenses routinely increase significantly each year.
“You can build a pro forma that is very simple, very consistent, and very predictable,” O’Connell says.
Get amenities without capital costs
Unlike many amenities that add value to multifamily properties, fiber internet has no installation costs, only a contract for the service. This amenity offers great benefits to new and existing property owners, as it does not require anyone to invest at the property level.
New real estate developers need to offer competitive and future-proof properties. Fiber Internet has these checkboxes checked for developers. It also opens the door for existing properties to continue to evolve alongside new developments and avoid obsolescence.
“This is a great opportunity to quickly increase the competitiveness of aging properties,” he says. quantum fiberThis is O’Connell. “It can have an immediate impact and is something brownfield real estate should focus on.”
Today, multifamily property owners are looking for every opportunity to increase their profits. Progressive technology amenities like fiber internet should be added to the list of efforts to unlock hidden value in property values.
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