Feb 16, 2022 | Home Technology

Property managers looking to attract new renters and add value to their communities should consider adding high-speed fiber optic internet to the community's offerings. Just as adding fiber optic internet to a single-family home can improve its value, so can adding this offering to multi-family rental communities or condos.

Make the community more attractive

Potential renters ask many great questions beyond how many bedrooms and bathrooms are in the apartment before choosing a place to live. Their questions often include features of the surrounding area (school district, nearby parks, recreation and entertainment options, closest coffee shop, etc.), how old the unit is, when it was last updated, and the types of utilities available.

Fiber optic internet can make a community more appealing to potential residents.

One question that pops up more and more with the increase in work-from-home and residents spending more time streaming shows and movies is: how good is the internet service?

Can it keep up with the demands of streaming, gaming, video conferences, and multiple devices all online at once? Chances are, the existing copper-based internet in the community bogs down when everyone hops online, mainly because it's a shared connection that splits the bandwidth among residents. This can be quite a hassle for residents. Fiber internet can handle the added usage because it has more bandwidth, faster speeds, and more reliable connectivity than copper or satellite-based internet.

Conversely, fiber optic internet provides a dedicated connection to each home, so all the bandwidth goes to each residential unit individually and is unaffected by the neighbors' online usage. This internet solution often includes a Wi-Fi solution, too, which can work one of two ways: with a Wi-Fi network in each unit or through a single managed Wi-Fi network with multiple internet access points throughout the community. A managed service or wireless network can also provide Wi-Fi at the pool and in other common areas with multiple gateways. Your local ISP can help figure out the best way solution for your community or apartment complex.It matters to potential and existing residents

Internet connectivity is not just important, it is critical to renters. According to the FTTH (Fiber to the Home) Council Americas, high-speed internet is the number one most important amenity for apartment residents moving into a new unit or deciding whether to renew their lease. In addition, residents of luxury apartments, in general, tend to rate high-speed internet as "very important" on a list of top features.

It matters to potential and existing MDU residents

Internet connectivity is not just important, it is critical to renters. According to the FTTH (Fiber to the Home) Council Americas, high-speed internet is the number one most important amenity for apartment residents moving into a new unit or deciding whether to renew their lease. In addition, residents of luxury apartments, in general, tend to rate high-speed internet as "very important" on a list of top features.

Residents expect high-speed internet as a must-have amenity.

Broadband Communities Magazine found the same sentiment among apartment move-in residents they polled, with 86% of respondents ranking reliable high-speed internet as their single most sought-after amenity and feature of an apartment community. The definition of “high-speed” in residents’ minds is also changing as more consumers have adopted a smart mindset, with multiple devices connected to the Internet of Things (IoT), requiring a gigabit or more just to keep up.

No extra cost to residents

Case studies have shown that, thanks to wider spread adoption driving down technology prices, high-speed fiber optic internet costs about the same – or in some cases less – than older, slower copper internet, depending on the internet service provider. In fact, on a megabits-per-second (Mbps) basis, fiber optic internet costs considerably less than copper because consumers are getting more megabits per dollar spent.

For example, if Customer A spends $65 per month to get 100 Mbps from a copper internet connection and Customer B spends the same $65 per month but gets 300 Mbps from a fiber optic connection, Customer B is paying less per megabit for an overall better value.

Communities that offer fiber-optic internet usually save their residents money compared to other slower internet options. According to Broadbandsearch.net, the average price for fiber optic internet service is $0.22 per megabit per second (Mbps), compared to $0.83 for cable and $1.53 for DSL. And because fiber is much more reliable internet, residents will get more for their money because they’ll have less down time.

Increase profits for property management

Offering fiber optic internet can potentially increase rental income to property owners, as the property's perceived value can rise with improved technology. According to the study, property managers who offered high-speed fiber optic internet as a utility option saw an average of 8% increase in monthly rent after adding the service. Because many communities do not include the internet as part of the monthly rent and therefore do not incur the added cost, the property management company can benefit from the 8% profit uptick.

Happier residents

Happier residents are more likely to renew their leases, leading to higher revenues and lower vacancy rates for the community.

But the benefits are more than just monetary. The study also revealed that renters with high-speed internet in their homes felt better about their decision about rental communities and were more likely to recommend the community to others. This feel-good word-of-mouth advertising is the best way to attract new residents.