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Bulk internet and cable agreements: check the margin

A bulk internet deal can earn money or lose it. Compare what the property pays the provider each month with what residents are charged for the service.

For: Owners and asset managers with bulk or marketing agreements

Under a bulk agreement the property pays for service to every unit and charges residents a technology fee. The deal works when the fee covers the cost; it quietly loses money when it doesn't, or when phone lines and other services share the same account.

The check

  • Get the agreement: per-unit price, escalator, term, door fees or revenue share, and exit terms.
  • From the invoices, separate internet from other services on the same account (phone, alarm lines).
  • Compare monthly cost with resident technology-fee income for the same months.

What to ask

  • Whether every occupied unit is being charged the fee.
  • When the escalator applies and whether the price can be renegotiated at renewal.
How Conduit helps

Conduit prices internet lines on resident billing rosters from the vendor invoices, so each month shows cost against what residents were charged.

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