Community-wide managed Wi-Fi is the communication infrastructure that supports the rollout of most smart building initiatives, from smart thermostats to water leak sensors to HVAC monitoring to controllable window shades. It also supports business applications such as virtual leasing, and adaptations of the business into short term rentals. Each of these areas create income value for owners, and increase property value.
Managed Wi-Fi itself may also provide an additional ancillary revenue opportunity for owners that wish to resell the service at a profit. This Multifamily Innovation Conference – Atlanta (MICA) session provided an overview of
- the physical network environment, including access point density and considerations in siting equipment;
- how the owner’s business intentions drive network design and cost given that all networks are not created equal;
- installation differences and difficulties between new construction and existing property deployments; and
- a decision matrix for determining whether to continue with retail agreements in which residents pay their own bills, or switch to bulk agreements.
Panelists included Ian Davis, Founding Member at David Craig; Rush Blakely, President & CEO at RealtyCom Partners; and moderator Steve Lefkovits, Joshua Tree Media.
“Every survey will tell you that the internet is the most important amenity, especially since Covid with so many people spending so much time at home,” Davis said. “Those owners with deficient internet services have suffered as a result. Some are now transitioning to bulk internet services because it gives them high-quality internet at a better price and they don’t have to wait weeks to have technicians come into the units to hook it up.”
With more and more technology coming to the community, greater connectivity is required across the property, Davis said. Having the proper system “is the digital foundation on which you can add most anything you want.”
Those who had that foundation, he said, made out okay. For example, if they had a Schlage lock installed and then wanted to move to touchless leasing and the technology that comes with that: it was an easier install.
There are several deployment options based on the provider used, Blakely said. Most involve access points and switches throughout the community; it’s a managed system and connectivity is ubiquitous where ever the resident goes.
One of the easiest networks to use is the Cat-6 – ethernet cable standard, Blakely said. The installer can use a heat map to find where internet connection gaps or voids are so they can better design the system and choose the proper equipment.
In retail connections such as AT&T or Comcast, etc., those providers’ equipment is installed in the property into the wall or onto the ceiling. It’s there permanently, and the access credentials are adjusted each time a new resident comes in so that everything gets connected.
College Math or Basic Arithmetic?
Davis said many telecom discussions with owners and installers today have turned into more like college math curriculum when they should be more like basic arithmetic.
“To me, the key things are ‘people’ and ‘process’ and three questions based on that:
What do they want in their apartments? Fast, strong, reliable service.
Who will be involved in the discussions from the owners’ side?
What do they know about bulk internet?
“Talk to some onsite staff, and they’ll tell you, ‘Our cell coverage is the worst there is, but we need to talk about a system that can be used throughout that will augment the system.’
“The IT guys will say, ‘We want to do license plate reading and other bells and whistles.’
In other words, they know what they want, but they don’t know how to quantify in the telecom space, Davis said. There needs to be an education process up front, Davis said.
Davis’ questions’ focus was, ‘What are the processes for the bulk agreement?’ ”
“How does [the owners’ Wi-Fi] intention drive network design and cost,” Davis said. “There are a lot of choices. Some can be a simple system that’s cost-effective. With only the monthly recurring costs.”
Davis said it can become expensive when a full bulk-services network is involved, but when a true economic analysis is done, there, he said, “you can see the savings and it can become very eye-opening.”
Installing bulk services into existing construction (vs. new development) is not always the more difficult or more expensive job because new development can be expensive, too, he said.
“Installers might come into new construction and say, ‘We didn’t plan on a different type of network. This is what I’m accustomed to. What are you talking about?”
So, Davis said, more education is required. Upon that, they find out that the system going in might cost some money. “Their first reaction is, ‘It’s not in my budget.’ ” That results in an internal battle on who’s going to pay for it.
New development installation seems like it’d be much easier: “All you need is a checklist of questions,” Davis said. “But then, when budget is blown, you get your face ripped off.”
Davis said the negotiation for installing a network in new development becomes a lot easier if the owner makes concessions up front.
Managed and Unmanaged Networks
There are differences between managed vs unmanaged networks. Unmanaged won’t solve for cell phone coverage – only Wi-Fi.
“You have to understand what your customers’ needs are,” Blakely said. “The modem hook-up is theirs if you have an unmanaged network; so, you end up with dozens of access credentials that are competing with each other in the building.”
With managed, when the resident leaves their unit and goes to a neighbor or the pool or another common area, they don’t need to ask for a new security code to join the network.
Davis said a new breed of companies is offering a managed network without bulk services: GigaMonster, GigStream, Aruba Airwave.
“They will provide it via a subscription and the owner will work with the provider, and they will let you hang your smart tech on it so you get some of the benefits of both.”
Read the Existing Agreement
Davis emphasized often the importance of owner clients wanting to build into existing development look at their existing agreements.
“If they want to install for IoT, we say, ‘What’s your contract look like,” Davis said. “If it requires connectivity, how are you going to address it and who’s going to provide it?”
Once the provider has been contacted, Davis said, his clients might want to add some [bells and whistles]. Davis asks the provider what he needs to do, and the providers tell him, “Oh, we’re getting into that space and we’d expect for you to bid to us first. If don’t go with us, I’m sure we can come up with an arrangement to connect it to our service.” Translation: Expect to pay that provider monthly for it.
Davis said owners should rely on someone who is immersed in telecom on a daily basis if they want to do the job right.
“You don’t have to hire me,” Davis said. “But if you, and you come to me before you’ve looked at your existing agreement, you’re going to have a problem.”
Blakely said some owners ask, “Why can’t I just buy a new network to get around my existing providers?” They can.
“It will affect the community’s aesthetics,” he said. “And installing wiring after the fact is going to cost more. If you have a poured-concrete building, the lines are going to be exposed somewhere.
“After you look at your contract, even if you want to go out and build a network, you have to look at your infrastructure. You can’t always trust that the provider is going to do the site planning correctly. [One important thing is to [find out who has rights to that wiring].”
(One client came to him with different phone, cable and Wi-Fi provider in place and wanted to connect the entire property to a fourth network – one for smart home tech. He worked with a consultant and ended up saving about $180,000 to $200,000 on the infrastructure and wiring, he said.)
Once a provider is chosen, the transition plan begins.
“Remember, you’ve got 250 residents using internet through two or three providers,” Blakely said. “If you are moving to install a bulk network over the next year or less, you have to think about the lease, the move-in package, and how it affects your residents.”
Here is the replay:
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