The client owns and manages stabilized market rate apartment properties. On site staff at one of the properties had been on the receiving end of resident complaints due to Internet speeds and the inability of the residents to enter service orders for new service. This also created a strain for the leasing staff as it affected new and renewal leases.
MAG was retained to determine the root cause of the Internet speed issue and to research why resident service orders were not allowed to be entered, and resolve the problem.
First, we reached out to each property to better understand what the residents were communicating to the staff. Second, we reached out to the provider for clarification of the existing technology deployed at the property, the limitations of that technology and the side effects of those limitations. It was confirmed that an older copper solution had been deployed and was at capacity. This was the root cause of the resident complaints. Additionally because the system was at capacity, service orders for new service could not be placed. Third, all service agreements were reviewed to ensure any negotiations would not interfere with any access or marketing rights granted to any providers.
MAG worked with multiple providers to survey the property and vet proposals upgrade the network infrastructure. Once the surveys were completed and we were in receipt proposed solutions, they were reviewed in detail with the client. Considerations included not only financial compensation, but also proposed technology, scope of work and the impact to management staff and residents. New agreements were negotiated that included upfront door fees, revenue sharing and common area courtesy services. The new provider also agreed to install all infrastructure at no cost to the property or owner.
When combined, the value of the fees paid for marketing rights, common area courtesies and capital offsets totaled more than $625K.