Rent prices in the United States are expected to calm down significantly in 2023, at least compared to the skyrocketing prices the market experienced in the last two years.
That would certainly be welcomed by renters, who have had to endure a jump in median rent prices of 6.2% in 2022 and 15% the year before, which marked the two highest rates of growth in 100 years, according to Yardi Matrix.
The Apartment List National Rent Report showed that December of 2022 marked the fourth straight month that median national rent dropped, with overall prices declining roughly 3% in that time.
All of this is great news for renters, who certainly could use a break in their housing costs at a time when just about every budgetary line item is increasing.
At the same time, that could mean a challenging year ahead for MDU property owners, who now must absorb rising costs without increasing rents substantially if they want to stay competitive.
Luckily, there is one surefire way that MDU property owners can increase revenue without raising rent — by harnessing the power of bulk broadband connectivity.
A Shift in the Broadband Narrative During the last two years, tenants all but expected that their rent was going to increase. Rising housing costs forced many tenants to look around come renewal time to see if they could find a better deal elsewhere.
In this period, MDU property owners were able to position a top-notch broadband network as an attractive amenity that could support rent increases. Now, though, that may no longer be sufficient.
With median rents starting to decline — and projected to at least remain stable for the year, if not continue to drop — it may be challenging for MDU property owners to increase rent, even if they tout their impressive internet network.
Instead, the changing market dynamics could force MDU property owners to hold off on price increase altogether this year. That’s not a bad, thing, though, as the same connectivity that serves as a major selling point for tenants can also serve as a major source of revenue for property owners.
How Bulk Internet Makes MDUs Money Bulk internet service can bring in a significant amount of revenue for MDU property owners. Here’s how …
Telecom companies such as Elauwit provide the internet connectivity for every unit. The same service is provided to every tenant in every unit. In addition, WiFi service can be set up throughout the property and in common areas so that residents don’t lose connection as they move outside their unit.
This bulk internet service is provided to the property owner at one set price. The MDU property owner can then include that price in the rent, charging a premium for the service.
For instance, if the bulk contract charges $40 per unit per month for internet service, the property can charge tenants $75 per month as part of their rent. Not only do residents likely pay a cheaper price this way compared to if they got internet service on their own, the property owner can make an additional $35 per unit per month in revenue.
These rates, of course, are only examples. How much your property would be charged for the bulk service, and how much you could charge your tenants, would vary depending on a number of factors.
Why Residents Love Bulk Internet From the tenants’ perspective, they are getting a great deal with bulk internet.
For one, they don’t have to worry about finding and securing internet service. In most cases, bulk internet is “always on.” As soon as they move into their new unit, their internet connection is active and ready to use.
Bulk internet simplifies their bills by allowing them to consolidate their rent and internet service into one. As mentioned, bulk internet usually results in a cheaper price for residents, too, even after the property owner builds in wiggle room so they can increase revenue.
Other benefits of bulk internet for residents include …
· Faster speeds: Most bulk internet contracts provide significantly higher speeds at cheaper prices than individual off-the-shelf plans.
· Better security: Bulk internet contracts provide end-to-end security solutions that individual contracts don’t. They even provide the ability for network activity to be monitored 24/7.
· Better customer service: When you or your tenants need customer support, there’s a dedicated team on hand to help.
· Improved access: Internet connections aren’t limited to each individual unit. Tenants can move freely among the building and property without dropping their connection or being forced to switch networks.
Explore the Benefits of Bulk with Elauwit At a time when MDU property owners are searching long and hard for ways to beef up revenue without raising rents, bulk internet connectivity is looking more and more attractive. If done right, a bulk contract can provide owners with an additional stream of consistent revenue.
In addition, bulk services are typically far superior to individual connectivity contracts, leading to higher tenant satisfaction and, as a result, increased renewal rates. That’s why in 2023 and beyond, bulk simply pays.
Not every bulk contract is equal, though. If you want to realize the true benefits of bulk internet, you need to start with a provider you can trust.
Elauwit, a boutique national telecom services provider, is the best company to partner with for bulk internet services. Contact us today to find out more about how we can help you increase revenue without raising rent.