At Multifamily Utility Solutions, our goal is to help our clients achieve their goals and increase their Net Operating Income (NOI). We always love to hear feedback from our client’s on how our partnership provided value and helped them succeed. Sam Wilson of Bricken Investment Group shared his story in their company’s Blog.
From “Multifamily Utility Service Contracts: How Investors Are Missing Out On Extra Income” on brickeninvestmentgroup.com
It’s highly likely that you’ve been missing out on one way to maximize your multifamily syndication investment. That’s because there’s a little-known secret that cable and internet companies don’t share – that is by having a well-negotiated utility service contract on your investment property, internet service providers, cable companies, and sometimes even gas and electricity utility services (more on this later) have to pay property owners (you and I) for the right to provide services on their private property.
Sure, the wiring is probably already installed and tenants can choose their provider in most cases, however, there’s value (often left on the table) to contracting with utility companies, specifically in regard to your multifamily property, as an additional way to produce compensation for investors.
Lucrative cable contracts can improve multifamily syndication investors’ net operating income by ensuring the utility provider pays you for the right to do business on your property. If you have more than 50 doors or a multifamily property in excess of $3 mil in value, and you don’t have a well-negotiated utility service agreement, it’s likely you’re missing out on several thousand dollars in immediate and ongoing unrealized income.
In this article, we’ll tackle why investors need to explore multifamily utility agreements, share a specific example of our recent experience, discuss what these service contracts do to boost NOI for multifamily owners, and dive into how these agreements can be beneficial for all involved, including renters.
OUR RECENT WIN WITH A MULTIFAMILY UTILITY SERVICE CONTRACT
Kevin Gardner from Multifamily Utility Solutions brought this entire concept of negotiating a cable access agreement to my attention recently (listen to our interview). So, I presented the idea to my sponsor team on one of our recently acquired multifamily properties, La Deara Crest. After completing due diligence on the property and discovering that there were no existing utility company contracts, Kevin negotiated a $49,000… (continue reading)
MUS’s own Kevin Gardner was featured on the Bricken Investment Group’s podcast in May 2021. Listen to the Episode, Increase Revenue and Reduce Expenses with Multifamily Utility Solutions with Kevin Gardner, hosted by Sam Wilson.
