The right question is not “what are they paying per door?” It is: what does the agreement produce for the property and residents over its full term, and what flexibility does it require in return?
Separate the four economic components
| Component | Question to answer |
|---|---|
| Resident charge | What is included, what is excluded, and how can it change? |
| Owner payment | Flat per-door, percentage, upfront payment, or a combination? |
| Property obligation | Construction, access, staffing, marketing, billing, or other commitments? |
| Term and escalation | Do resident price and owner payment rise in a balanced way? |
Compare lifetime value, not an isolated year
Build a simple year-by-year schedule: resident charge, owner payment, expected escalator, service scope, and one-time items. Do not assume an upfront payment is equivalent to recurring NOI, and do not assume a recurring payment keeps pace with a resident-rate increase unless the contract says so.
Test the resident proposition
The property is ultimately responsible for explaining the program. Compare actual included speed, equipment, activation, support, and the resident’s effective monthly charge against the alternatives available at that address. A model that looks good only on the owner payment can become expensive operationally if it creates repeated resident friction.
Price flexibility explicitly
- Can the owner renegotiate at a defined interval?
- What happens if the asset is sold, refinanced, or repositioned?
- What are the cure rights if service or implementation fails?
- Who owns in-building wiring or equipment after the term?
- Does the arrangement include provisions that merit counsel’s review under FCC MTE rules?
Watch for misleading comparisons
A carrier proposal may use different unit counts, different service tiers, promotional pricing, or a different term than another offer. Normalize those assumptions before deciding. The FCC has prohibited certain exclusive and graduated revenue-sharing arrangements in multiple-tenant environments; agreement language should be reviewed by qualified counsel. FCC MTE Order.
A neutral model should make the tradeoffs visible. MDU Advisors can help compare offers on a consistent basis before the property selects a direction.