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Multi-Family and Apartment Investing

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Serge S.
  • Rental Property Investor
  • Scottsdale, AZ
596
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390
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Considering wifi or cable to offset RUBS in 56 unit apartment complex

Serge S.
  • Rental Property Investor
  • Scottsdale, AZ
Posted Sep 2 2014, 21:22

I am just about ready to implement water, sewer and trash submettering on a 56 unit complex. We completed a retrofit so that all units have a water main that is submettered. A separate company will do the meter reads, billing and shutoff as necessary. I am estimating that the tenant cost of water, sewer, trash and the meter read/rental fee will be $50-$70 per month for each tenant. This will be great for our NOI and we have implemented this system with great success in the past. This time around, we are in a market that is highly competitive. There are 4 other complexs around town and we all compete for the same tenants. They charge a flat $30 for water sewer and trash and I do not charge anything although my rents are a bit higher as my units are 1000 sq feet to their 700 sq feet. RUBS makes sense but I'm very concerned about springing it on the 50+ tenants and seeing a mass exodus and turnover. I'm considering compensating with the installation of wifi or cable. I know the liability issues of wifi but if it can be done right then all good.

The question is cost. I wonder the cost for unit of either wifi or cable. If I can do it for $10-$20 per unit then it would be a win win. I have not been able to find much information and will be calling the major providers shortly. Wondering if anyone has done such an install and the initial and ongoing costs involved.

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