How to Increase Your Apartment NOI through Additional Services with Todd Thorpe
Value-add strategies are popular for apartment investing. Adding value to apartments usually consists of renovating interior units. However, these upgrades are not the only way to add value for multifamily. Since value is determined by the net operating income or NOI, anything that increases the NOI is adding value.
Besides rental income, you can generate other income from fees, amenities, and services such as application fees, laundry income, party room rentals. Todd Thorpe runs MDU Consulting and specializes in helping apartment owners generate more revenue through telecommunication services such as cable and internet.
Cable and internet services are just one way to increase the NOI for multifamily apartments. Owners should consider utility reimbursement, laundry income, administration fees, pet fees, technology packages, valet trash, and other amenities that cater to the demographic of the apartment community. When looking specifically at telecom, owners need to understand how to package these essential resident services to bolster their bottom line.
We spoke to Todd about how owners can work with cable and internet providers to drive revenue and increase the apartment NOI. He shares tips and insights to understand which apartments qualify, negotiating an agreement, the fee compensation model, and other value-add strategies.
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Key Insights to Increase Your Apartment NOI
From bulk cable provider for multifamily dwelling units (MDU) for 30 years to consulting
How cable and telecommunication companies are looking to secure a property and keep the competitors out.
Focus on the security of the contract and generating ancillary revenue.
The different type of properties that make up the multifamily space
What you can do to increase your NOI (Net Operating Income) excluding rents
Understanding the legalities of providing free cable and internet to your tenants (Cable companies will pay to do so!)
The profits that can be made by working with cable and telecommunications companies providing free internet and TV to your tenants
How to monetize offering bulk and non-bulk cable and internet services
Providers will pay more for bulk agreements because they are getting guaranteed revenue.
How to negotiate with cable and internet providers for the best price
The 3 ways to increase revenue when buying bulk TV and internet services (Upfront Door Fee, Revenue Sharing Model, Courtesy Accounts)
MDU Consulting Group, how they can help multifamily investors leverage bulk TV and cable contracts
The challenges with other value-add services you can offer your tenants
When dealing with different providers, organize your portfolio to get ahead of contract renewals.
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