All Forum Posts by: Christina L.

Just wanted to add some final details to this thread following my research in case there is interest. The local Phoenix cable provider I’m going through requires the property to be 100+ units in order to qualify for incentives. Whether or not that can apply across multiple properties that add up to 100 units, I’m uncertain but it’s something that may be a negotiation point in the future. Also, since we’re repositioning this asset and will sell it when the cap ex work is complete, I checked with some local experts to see if a bulk cable contract would create any issues for potential buyers. The feedback I got is that buyers would prefer to see an access-only vs. a binding bulk contract since those contracts transfer to the new owner.

Good point @Michael Noto

@Marcel Theisen - thank you for the feedback, especially on the lease length & auto-renew clause.  

@Melissa Gittens - I'll be doing some of my own research with the two companies I mentioned in my original post so if you're interested, I can share with you what I find.

Multifamily investors, how do you handle shared laundry rooms? Specifically, do you outsource to a third party the maintenance of the machines (and split profits) or is this something your property manager oversees? I’m looking into Mac-Gray as a potential servicer the laundry room, as well as a local company in the Phoenix, Arizona area where our 22-unit multifamily property is located. I’m new to multifamily investing and I’m the project manager for this cap ex project so any input is appreciated. 

@Brian Adams, , thank you for sharing your inspiring story. It takes a lot of courage to leave a stable & successful career to do something where success is far from guaranteed. I recently did the same and I’m just starting out in the multifamily world. This post is encouraging!

Thanks @Gino Barbaro. Really glad I asked this question. I got more than I was expecting when I initially asked. I will find out if they're willing to offer incentives. We also own a 120 unit and a 69 unit but our partners handled the cap ex at the time so I don't know if we got incentives. Since I'll now be working on our repositions, having this knowledge in my back pocket will be helpful for future projects.

@Anthony Chara - great to know. A 22-unit may not be large enough to get up front fees, like you said, but this is great to know for future deals. And who knows, they may be willing to offer it on the 22-unit.  Either way, it helps to know where there might be room to negotiate. Thanks for your help!

@Brian Adams - good feedback! I'll ask about profit sharing in any upgrades if we go with bulk, since they DO offer upgrades. Curious, what class is your 200 unit?  

@Ronan M. - interesting that they didn't want to consider your proposition.  I would think that would be enticing for them but apparently not. They may be more willing to consider it on a 22-unit. I'm looking at their options now and they won't charge us as the owners anything to install the cable lines (and have the tenants contract them directly/NO bulk service), but they do want a 10-year agreement + us to promote their services. So even if there is no bulk agreement, looks like they're still requiring elimination of the competition by virtue of us promoting them. The bulk agreements only have a 5-year agreement. Might be a matter of negotiating better terms but I guess I'm about to find out how much leverage a 22-unit brings.