Increase Your Net Operating Income
Working with MAG is like having someone in the office next to yours with the expertise and experience to boost your NOI via ancillary services income. Over the last 20 years, our experienced team has negotiated thousands of telecom agreements. Our goal is always to increase NOI by generating ancillary income revenue and decreasing recurring expenses. In each transaction we work to maximize the following types of considerations from the telecom providers:
- Upfront advanced payments where the providers pay a “door fee” based on the agreement execution date or Certificate of Occupancy. These payments provide an immediate one time income source.
- Ongoing revenue sharing payments where the providers share the subscription revenue with the property owner. These payments provide consistent monthly or quarterly income.
- Courtesy services (like cable TV for the fitness center, or internet service for the management office) which reduce or eliminate recurring monthly expenses.
- Common area wifi services for pool areas or other resident gathering spots which create valuable amenities.
- Construction cost offsets – for apartment developers, these offsets shift the cost of items like wiring, conduits, media panels and other infrastructure from the developer to the service providers.
Efficient & Cost-Effective Administration
MAG has a proven process to make sure that once the agreements have been finalized, the service providers live up to the terms in those agreements. From the beginning and throughout the term of the agreements, MAG ensures that:
- Upfront fees are accurate and are received in a timely manner
- Ongoing revenue share is accurate and paid according to the agreement terms. All payments are compared on a quarter over quarter basis.
- Courtesy services are installed and maintained
- Asset management has access to all financials, including projections for budgeting purposes
- Construction offsets and contributions are adhered to.
- Agreement copies are immediately available for financial purposes like refinancing, recapitalization or disposition.
Creating Durable Revenue Streams
MAG is contingency based, which ensures that our goals are aligned. Our approach is collaborative. We conduct the due diligence, analysis and evaluation, but the decisions are driven by consultation with our clients. We give you the tools to make informed decisions, and the expertise to maximize the value of transactions once an agreed upon strategy is reached. We make the negotiation process simple and only benefit when the desired outcome is achieved.
MAXIMIZING ANCILLARY INCOME
Multifamily Telecom Agreement Negotiation and Management
MAG specializes in multifamily telecommunications agreement consulting. This is our sole focus. Our understanding of the rapidly evolving telecommunications landscape allows our clients to focus on their core businesses – developing, leasing and managing apartment communities. We partner with apartment developers, owners and operators nationwide, providing research, analysis and negotiation expertise. The telecom service providers have teams of specialized negotiators. We level the playing field. Given our national reach and the volume of transactions we negotiate with service providers, our experienced telecom experts ensure that the best business terms are obtained and the agreements are negotiated to protect the owner's interests.