Bulk Internet and Technology Packages in Apartments: How to Underwrite the Income
On this page
Many apartment owners now sign a bulk agreement with an internet provider. Every unit gets service, and each resident pays a monthly technology fee. If the fee is higher than what the owner pays the provider, the building earns a margin. If it is not, the building loses money on every unit. This post shows how to underwrite a package like this without overcounting it. It sits beside our guide to other income underwriting. General information, not legal or investment advice.
Raising for an apartment deal? Start free
How the money flows
| Item | Who pays whom | Note |
|---|---|---|
| Technology fee | Resident to owner | May be separate from rent or built into it |
| Bulk service charge | Owner to provider | Often per unit, per month, for all units |
| Provider payments to the owner | Provider to owner | Some contracts include marketing or revenue share payments, which may be limited by rules |
Federal, state and local rules affect some provider arrangements. Have your attorney review the contract. This is not legal advice.
A hypothetical example
This is an illustration with made up numbers, not a quote. A 100 unit building pays the provider $40 per unit per month, and charges residents $60 per month. Occupancy is 94%.
| Line | Annual amount |
|---|---|
| Fees collected (100 units times 94% times $60 times 12) | $67,680 |
| Provider cost (100 units times $40 times 12) | $48,000 |
| Net income | $19,680 |
At a 6% cap rate, that net income would add about $328,000 of value, but only if a buyer or lender treats it as stable. The same package can turn negative: with a 70% take rate (residents who pay), the fees fall to $50,400 (100 times 70% times $60 times 12) and the net is $2,400. Resident acceptance matters.
Questions for the contract
- How long is the term, and does it renew automatically?
- How fast can the price per unit rise?
- Does the provider bill for vacant units? For new units?
- What happens to the contract on a sale? Does the buyer have to assume it?
- Who owns the wiring and equipment? Who maintains it?
- What service levels apply, and what remedies exist?
- Can the owner terminate if service is poor?
Questions for the building
- What do residents pay for internet today? How does the fee compare?
- Does the lease allow the fee? Can it start at renewal only?
- What share of residents is expected to pay, and what is the plan for complaints?
- Does the lender or a future buyer treat the income as stable? See debt yield and net operating income.
Related ideas
Other building fees and recoveries follow the same discipline. See ratio utility billing, reducing operating expenses and renovation premiums.
How DoorRaise fits in
DoorRaise does not provide internet or manage buildings. The sponsor builds the underwriting, and DoorRaise handles the raise, the deal company, the investor paperwork and escrow. Sponsors pay a flat $1,500 setup fee and a flat $5,000 yearly administration fee.
Frequently asked questions
Is bulk internet income guaranteed?
No. It depends on the contract, the lease terms, resident acceptance and occupancy.
Should I count it in my base case?
Only once you have the contract and the billing in place. Otherwise, model it as upside.
What if the provider raises its price?
If the resident fee cannot rise at the same pace, the margin shrinks. Check the escalators.
Sources
This article is general information as of November 2026, not legal, tax or investment advice. Every investment can lose money. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.