Bring CO-OP Net Benefits to Your Multi-Tenant Rental Building:
CO-OP’ing your building’s internet means;
- Buying or Leasing-to-own your building’s in-house network,
- Providing a valuable ‘essential’ amenity to building & tenants,
- Excellent ROI through sustainable operation with tenants participating,
- Enhancing your rental value proposition,
- 100% operational lease write-off option,
- Greatly enhance your buildings capital value, significantly!
*See capital value section
Happier Tenants
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Your tenant’s suite is already hooked up and ready to go, no need for any additional set up fee or equipment rental costs. They simply pay a lower rate monthly for the best internet possible.
Greater Suite Value Proposition:
- All things being equal, your rental suites have an advantage over others while incorporating those into rental rates, or passed along as a far more cost effective offering for fibre-based internet.
- This is the last internet your tenants will ever need.
Added Revenue Stream for Your Building:
- Enjoy the added revenue streams from tenants paying the service over to you instead of the carriers.
- At $40/suite/month, a 100-unit building enjoys an added $48,000/year in added revenue!
Building Capital Value Appreciation: The Hidden Bonus
- Your building’s capital value is impacted by those things that lower your operating costs, or increase your revenue, or both.
- If your building makes a nominal investment into having it’s own fibre-internet network, this becomes a highly valuable amenity that can readily be rented out to your tenants every month from now on.
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The Capital Valuation Formula
The added net revenue for the year / divided by the capital appreciation factor: 3.75% = The added value brought to the building.
Eg; 100-unit block, 100 x $40 = $48,000/yr divided by 3.75% = $1,280,000 of added value! And, this added value is essentially a zero-net out-of-pocket investment supported entirely by the tenant revenues.
The Cost To Your Building For CO-OP Net:
You could get a CO-OP Net installation for purchase or Lease-to-own, or combination thereof;
The total installation including wiring for the building, plus equipment room gear, in-suite set up and back end is valued in total at approximately $650/per suite. One time cost.
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As to finance options:
This can be leased to own at $20/suite/month on a 3 year lease.
The Installation:
This is a non-invasive ‘light-footprint’ install which will not in any way interrupt building operation. There are new techniques for retro-cabling buildings that are much quicker to install than it went years ago. The in-suite install are done with 20-30-min of work per suite.