With advances in technology and the rise of younger renters, some landlords consider offering Wi-Fi as an amenity. However, is it efficient or cost-effective?
When it comes to reducing tenant turnover, several landlords consider offering perks or amenities to entice prospective tenants to apply or current renters to stay. Common perks include in-unit or in-building laundry, parking spots, appliances (beyond the basics, such as dishwashers or garbage disposals), central air, and more. With the rise in technology and the growing population of young renters, landlords are beginning to offer Wi-Fi as an amenity.
On the surface, this seems like a good idea: tenants of every age are becoming increasingly connected to their devices. However, offering wifi as an amenity is more complicated than it might seem. In fact, offering Wi-Fi as an amenity might be more trouble than it’s worth, for both landlords and tenants. This blog post discusses the business case for providing Wi-Fi as an amenity, including potential revenue opportunities and cost-benefit analysis for landlords and property managers.
Growing Tenant Demand for High-Speed Internet
In recent years, tenant demand for high-speed internet has surged, transforming connectivity from a luxury into a basic expectation. Modern renters, especially Millennials and Gen Z, increasingly view reliable, fast internet as essential for work, school, streaming, and smart home devices. Surveys consistently show that high-speed internet now ranks among the top amenities tenants seek, often surpassing traditional perks like parking or laundry. This shift is prompting landlords to reevaluate their amenity offerings, with many recognizing that providing quality internet access can attract and retain residents, reduce vacancy rates, and set their properties apart in a competitive rental market.
From a Landlord’s Perspective
Initially, landlords think that offering free Wi-Fi is a surefire way to attract renters, especially the younger demographic. However, according to one landlord, it only led to never-ending phone calls.
“When you provide wifi to your building, you basically become IT. If something is running slowly or goes wrong, tenants have to call you so you can call the internet provider. Then, you have to call the tenants back. It’s a frustrating cycle. Also, we’ve had calls from our internet provider about suspicious activity happening on our service. We had to go tell the tenant to quit, or we would have to evict them. Also super frustrating.”
From a Tenant’s Perspective
While tenants might initially be attracted to the concept of free wifi (especially if they are college students or on a budget), shared wifi isn’t always ideal. Sharing the Wi-Fi among other units made it almost unusable.
“I lived in an apartment building where the landlord offered free wifi to be helpful. We were all college students, so we thought it would be great to save ourselves $50 a month. But because it was shared throughout the building and there were always people streaming Netflix or playing video games, it lagged so much that it became nearly impossible to use for anything other than checking your email. Eventually, we just had to bite the bullet and get our own wifi.”
The Trouble with Offering Wifi as an Amenity
- It’s a never-ending cycle of troubleshooting. If you own a unit with 2 or more people, you’ll be on the phone constantly. Tenants have to call you to call the internet service, and you, in turn, have to act as the go-between for the service and the tenant.
- It’s a liability. If the tenant conducts illegal activities on your service, you’re held accountable.
- It’s not meant for multiple streaming. If you have multiple units and therefore multiple people connected to the same internet connection for streaming video or video games, even with higher-speed internet, it will still slow the service down. Arguably, most people using technology are also, in some capacity, using the internet to stream videos (like Netflix or Hulu) or to stream video games. Depending on how many units you have, if everyone is on the wifi at once, it can become almost unusable.
Choosing Service Providers and Technology Solutions
Selecting the right technology partners or internet service providers (ISPs) is a critical step for landlords and property managers considering property-wide Wi-Fi solutions. Below are essential steps to help you select the best provider and solution for your community.
- Assess Property Needs and Resident Expectations: Begin by evaluating your property’s specific requirements and residents’ expectations. Consider the number of units, building layout, and the types of internet usage (e.g., streaming, remote work, gaming). Survey residents to understand their bandwidth needs and preferences. This preliminary assessment ensures that the solution you choose will provide adequate coverage, speed, and reliability, preventing future complaints and costly upgrades.
- Research Available Service Providers: Investigate which ISPs and technology partners operate in your area and have experience with multi-unit or community-wide deployments. Look for providers that specialize in managed Wi-Fi or bulk internet services tailored to multifamily properties. Compare their service offerings, coverage maps, and reputation for reliability.
- Evaluate Technology Infrastructure and Scalability: Examine the underlying technology each provider uses, such as fiber-optic versus cable, and whether their infrastructure supports future upgrades. Ask about the scalability of their solutions. Can they accommodate more users, devices, or increased bandwidth as your property grows or residents’ needs evolve? A scalable, modern infrastructure helps future-proof your investment and ensures consistent service quality as demand changes.
- Review Security and Privacy Features: Security is a top concern when offering shared or managed Wi-Fi. Assess each provider’s security protocols, including network segmentation, encryption, and user authentication methods. Ensure the solution protects residents’ data privacy and prevents unauthorized access. Providers should also offer clear policies for handling illegal activities or security breaches, reducing liability for landlords and protecting tenant trust.
- Analyze Support and Service Level Agreements (SLAs): Reliable support is essential for minimizing downtime and resident frustration. Review each provider’s customer support structure, including response times, availability of 24/7 help desks, and escalation procedures for outages or technical issues. Examine their SLAs to ensure they commit to high uptime percentages and fast problem resolution. Strong support and clear SLAs are crucial for delivering a positive resident experience.
- Consider Integration with Property Management Systems: Modern Wi-Fi solutions often integrate with property management software for streamlined billing, user management, and service activation. Ask providers about compatibility with your existing systems or the availability of APIs for custom integration. Seamless integration can simplify administration, automate resident onboarding, and provide valuable usage analytics for both landlords and tenants.
- Request References and Pilot Programs: Before making a final decision, request references from other property owners who have implemented similar solutions. Inquire about their experiences with installation, ongoing support, and resident satisfaction. If possible, negotiate a pilot program or trial period to test the service in a limited capacity.
Choosing the right technology partner or ISP is a multifaceted process that demands careful planning and due diligence. Platforms like RentRedi can help landlords manage these integrations and automate resident onboarding.
What to Offer Instead of Offering Wifi as an Amenity
So, what to offer as an amenity instead of wifi? While there are several other amenities (laundry, parking, appliances, central air) that landlords sometimes offer, they are not always feasible, depending on your property’s location or structure. Additionally, these amenities aren’t always specifically attractive to younger renters.
If you’d still like to provide a technology-related amenity to entice renters, giving them the option to pay rent directly from their phone is one option. Because so much of society is technology-driven, tenants will likely purchase their own Wi-Fi regardless of whether it is offered, as it is often a necessity for work, school, entertainment, communication, or social media.
Additionally, because people can do everything from their phones, the ability to pay rent from their phone is an easy amenity that is not only attractive to potential tenants but also costs you less per month than wifi! While the average cost of wifi per month is $50, RentRedi is less than $20/month, and your tenants can pay rent online, set rent reminders, and send mobile maintenance requests (with the option to attach a 5-second video of the issue).
Frequently Asked Questions
Below, we answer common questions about what it means to provide internet as an amenity and outline the main models landlords can use.
What does it mean to offer internet or Wi-Fi as an amenity?
Offering internet as an amenity means the landlord arranges and provides internet access for tenants, either included in the rent or as an optional service, simplifying setup and billing for residents.
What is the concierge model for the internet as an amenity?
In the concierge model, a third-party service helps tenants select and set up internet with local ISPs. The tenant manages their own contract and support, while the landlord simply facilitates the process.
What is the DIY model for providing internet as an amenity?
The DIY model involves the landlord or property manager directly negotiating with ISPs, managing equipment, and handling support. This approach requires significant effort and resources to operate successfully.
What is bulk internet in rental properties?
Bulk internet refers to a single contract between the landlord and an ISP that covers all units in a building. The landlord typically bundles the cost into rent, ensuring all residents have access from day one.
What is group-rate internet?
Group-rate internet aggregates demand across multiple properties or units to negotiate better pricing with ISPs. The landlord or property manager includes internet service in the lease and manages support through a dedicated provider.
How do these models differ for landlords and tenants?
Concierge models offer convenience but little control, DIY models require hands-on management, bulk contracts work best for multifamily buildings, and group-rate models suit portfolios spread across different locations.
Is the internet, as an amenity, considered a utility or a perk?
When landlords arrange and bundle internet service, it’s treated as an amenity, not a utility, enhancing the property’s appeal and streamlining the move-in process for tenants.
What are the first steps to implement the internet as an amenity?
There are practical aspects of rolling out the internet as an amenity, including the steps involved, potential pitfalls, technical challenges, and support considerations. Begin by assessing your property’s needs, researching ISPs experienced in multi-unit deployments, and evaluating your building’s infrastructure for compatibility with managed Wi-Fi solutions.
What technical challenges might landlords face during installation?
Landlords may encounter issues with building layout affecting signal coverage, retrofitting older properties, and ensuring the network can handle multiple users streaming or gaming simultaneously without significant slowdowns.
How can landlords manage equipment logistics?
Develop clear protocols for distributing, recovering, and maintaining routers or access points at move-in and move-out. Document all equipment with inspections and include recovery clauses in lease agreements.
What support considerations are necessary for ongoing service?
Establish a dedicated support line or contract with a provider offering 24/7 assistance. Avoid routing tenant issues through the leasing team to prevent operational bottlenecks and frustration.
What are common pitfalls during rollout?
Pitfalls include inadequate bandwidth, poor network security, unclear support responsibilities, and slow adoption among existing tenants. Pilot programs and clear communication can help mitigate these issues.
How should landlords address security and liability concerns?
Choose providers with robust security protocols, such as encryption and network segmentation. Include clear terms of use in leases to protect against illegal activity and data breaches.
How can landlords ensure a smooth transition for tenants?
Standardize the onboarding process with clear instructions, quick activation on move-in, and simple escalation procedures for technical issues. Communicate all changes and benefits effectively to residents.
In a “there’s an app for that” world, an app that allows tenants to pay rent and send maintenance requests can easily fulfill the idea of wifi as an amenity. Tenants still receive the convenience of technology, but without the hassle of their landlord or property manager having to run interference with the internet company.