Adding whole building wifi for smart devices?

Question

I recently took over a small building in a A area, very Ritzy in Stamford, and I am in the process of a small experiment. It's only four units, so it's a controlled test to see if smart devices can raise the rent and save me money at the same time. I am installing:

(4) Nest Hello Doorbells

(4) Nest Protect Smoke alarms

(4) Nest Thermostats E's

(4) Nest × Yale Locks

I will set them myself, as I've been using them in my home w/o issues for over 2 years. I will setup separate accounts for each apt. and when they are rented out, they will be given a login for the Nest account and I will also charge a $25.00 per month, per unit smart home support fee. That includes support and any additional help they need to manage the smart apt. However, I need to figure out how to get wifi for the entire building. It's only four floors, so it shouldn't be too hard, I am just not sure how to do it. Would I just call the cable company to install the Internet?

Open to ideas.

I can tell you, the Nest Thermostats in my home save me about 150 - 200 bucks a month then my previous programmable thermostats. I would think this would be a big selling point for the tenants as well as the alert features they'd have all setup when they move in. With the smart support fee, I'd be able to recoup my costs in less than a year and then it pays for itself. In addition, our utility gives a rebate for the thermostats as well.

Nathan Gesner · Answer

The estimated average savings for a Nest Thermostat is less than $200 a year. I'm not sure what you did to save $200 a month but it's not the thermostat.

I'm looking at this from a business perspective. You're going to add around $800 in equipment and then raise the rent $25 a month. It will take you 32 months to recover your costs, assuming there are no maintenance issues, time training the tenants, or time spent answering questions and trouble-shooting them. You also have to remember that technology fails a lot, particularly if it's being used by a renter and not the owner.

For an A-class community, this might be a good idea to make your units more attractive to younger tenants but I don't see it as a financial investment.

Mike A. · Answer

No doubt, but they will be setup prior before they move in and provided a username and password to each Nest account. There's no issues in terms of support as it's pretty self-explanatory. Once it is setup, it basically runs itself.  The building also has a few washers and dryers, so I understand your frustration with that. The w/d hookup brings in an additional 20k a year, so worth it in the common area, and we do the same for fridges as well. Very basic no bells and whistles; but they are stainless steel in the A and B areas. In the C areas, we get either white or black, but no water line and we do not offer garbage disposal units. We're just concerned if a kid puts their hand down their and flips the switch. You'd be surprised that this has happened to other landlords before. Not a pretty sight.

Raul R. · Answer

Its not a bad idea, if its an A class Property as other said  it might be worth trying it out.. Personally I wouldn't do it, I found its best to make the tenant responsible for anything that might break whenever possible.. I dont want to be tech support.

After my Washer/Dryer fiasco in the beginning of my investing career, I provide Washer/Dryer hookup but its tenants responsibility for the equipment.. I remove Garbage disposal if unit has one after it breaks. I get basic fridge, no ice maker or water hookup to avoid issues but none of my properties are in A class..

I never used Nest, but if it uses the tenants personal wifi to connect I wouldn't want to be responsible for setup..

Patrick M. · Answer

Smart devices are so yesterday.

I use “Very Smart” devices. I use Chicago control thermostats, they don’t allow the heat that i am paying for to be set above 71 and they auto set back at the appropriate times... has saved me a fortune and I don’t have to pay for building WiFi or make a tenant feel like I am looking over there shoulder. - Very smart device.

I use wired doorbells. And have a package delivery box. No one relies on a friggin door bell anymore and if you are in an A neighborhood and worrying about break-ins, then I got news for you, you are in a c-d neighborhood.

I use landlord locks, one key to get in the buildings main door and the same key that can only get into an individual apartment. Swap out tumbler locks in 2.1 seconds on turnover. Very Smart device, tenants impressed with security and no WiFi bill.

My smoke and CO alarms are up to code. Very Smart, no need for WiFi and the extra cost that would be incurred by a “connected” device. Very Smart.

KISS.

Domenick T. · Answer

@Mike A.

I think it’s worth the investment for higher end properties (maybe not the smoke detector though).

You can probably charge more than +$25. Plus you may rent it quicker or have higher quality tenants. That pays off too.

Will Triplett · Answer

Two suggestions if you are going to go that rout. Look at Ecobee3 thermostats as an alternative to Nest. Also, for wifi look at Eero mesh wifi for good coverage.

Victor San Gil · Answer

Try it out! If you can get the devices for 50% off MSRP then take the gamble I say. If in the event the system becomes more of a hassle then a perk you can always remove the smart devices and then sell it for 50% off MSRP on ebay and you'll easily get your investment back.

Also, in regards to wifi access, will that 100MBps be shared across all tenants thus throttling everyones else's connection or will every unit have access to their own pool of 100MBps speeds? If the account is under your name for the internet I'd be wary about what your tenants might be doing online especially people that download copyrighted materials. Your ISP may be on your tail if they track you down.

Mike A. · Answer

Not my first rodeo, but I appreciate your input. I will, of course, provide updates to see how the test does. So far we've pitched it to the tenants about the proposed upgrades, it was greeted with all positives, no negatives. The wifi is optional for the tenants, but they are welcomed to use it and it will offer SSL encryption as a standard feature. None use home phone or cable, but each apt is already wired for it.

Patrick M. · Answer

@Mike A. I am in the $1700- $2100 1 and 2 bedrooms range. I find that my tenants like to see a direct line connections in each room. They all have, and need, their own internet and we all know that carries its own WiFi. So many people work at least some days from home that they need a dependable hard line.

I just don’t see the benefit of free WiFi unless it is in a common laundry area. The other gadgets, in my opinion, appeal to landlords and not at all to tenants- and not to the degree of setting you apart.

I would seriously look at the Chicago controls thermostats, they are not flash, but they will save you $ while still allowing the tenant freedom.

Other things I am very much “meh” about.

Mike A. · Answer

It's a shot. I thought it would be another way to get some extra money while providing a valuable service that my competitors do not yet provide. I know I've heard the ritzy apts in NYC already offer this.

Yea, the Internet is shared, but I need it anyway to setup the devices. I wonder if there is a way to create a separate login for each apt. for them to use. The account is in the business name, which they know it's an apt building. I live a few miles away, so I do not think it would have any negative effect on me. I think Spectrum also offers business wifi and public wifi, so I'll check with them too (https://business.spectrum.com/internet.html).

Of course, tenants are able to get their own wifi, but with that usually costing around 50 bucks a month, I think my offering along with the smart home features would be very appealing.

Adding whole building wifi for smart devices?

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