For tenants looking for rental properties, internet access is one of the most important factors in choosing a property. More tenants are choosing properties with free internet even if they are farther from the station, so installing internet facilities in rental property management is directly linked to reducing vacancies. In this article, we explain the types of connections that can be introduced, the costs involved, and the key points to keep in mind.
What is the ranking of popular amenities in rental properties?
Understanding which amenities tenants value is a basic part of rental property management. Below are some of the amenities with especially strong demand.
Free internet
This is a highly popular amenity for both single-occupant and family-oriented rentals. With an individual contract, it costs about 3,000 to 4,000 yen per month, or roughly 50,000 yen per year, so being able to use it at no charge is a major advantage. The fact that it can be used immediately after move-in is also highly valued.
Indoor washing machine space
When a washing machine can be placed indoors, its service life is extended and it is not affected by the weather, which is appealing. It also helps prevent noise-related issues.
Intercom with monitor
Because residents can confirm the visitor’s face, it provides a greater sense of security. This amenity is especially popular among single residents and households with children.
Air conditioner included
In recent rental properties, having an air conditioner is becoming the standard. In many cases, properties without an air conditioner are excluded at the search stage.
Separate washbasin
It allows residents to get ready without using the bathroom, which helps save time in the morning. This amenity is especially popular with families.
What types of internet connections can be installed in rental properties?
The internet connections that can be introduced into rental properties mainly fall into the following categories.
Fiber-optic line (FTTH)
This is a high-speed communication line that uses fiber-optic cables. It enables fast and stable upload and download speeds, making it the most recommended internet environment for rental properties. In addition to FLET'S Hikari from NTT East and NTT West, proprietary hikari collaboration services from individual providers can also be used.
CATV (cable television) line
This is an internet service that uses cable television lines. Television and internet can be provided as a package, and depending on the region, it may be easier to introduce than a fiber-optic line.
Wi-Fi (wireless LAN)
This method brings an internet line into the building and installs a Wi-Fi router in each room. Because tenants can use it on the same day without any installation work, it offers a high level of convenience.
How much does it cost to install internet facilities?
Installation costs vary depending on the type of line, the structure of the building, and the number of units.
Estimated initial costs
- Fiber-optic line installation into the building：about 150,000 to 300,000 yen
- Wiring work to each unit：10,000 to 30,000 yen per unit
- Wi-Fi router installation：5,000 to 10,000 yen per unit
Monthly running costs
As a guideline for line usage fees and provider charges, about 10,000 to 30,000 yen per month (for a 10-unit property) is typical. On a per-tenant basis, that comes to 1,000 to 3,000 yen per month, and even if it is added to the rent, the benefit to tenants still outweighs the cost.
What should you keep in mind when introducing internet service?
Below are the points that should be addressed before installation.
Connection speed and stability
It is important to secure sufficient bandwidth for the number of tenants. Choose a line capacity that remains comfortable even if all tenants are streaming video at the same time.
Wiring methods for existing buildings
In older buildings, pipe space may be limited. Ask NTT or the installation contractor to conduct an on-site survey in advance and confirm the optimal wiring method.
Contract term and cancellation conditions
Corporate internet contracts may have longer commitment periods than personal contracts. Be sure to check the cancellation terms and penalties before signing.
Security measures
Securing the shared network is also important. Install equipment that supports VLAN settings so that communications between tenants are separated.
Which internet providers are recommended for rental properties?
Here are the major providers that offer internet services for rental properties.
Key checkpoints when selecting a provider
- Do they have a track record of installations in rental properties?
- Is the support system sufficient?
- Is there an inquiry desk for tenants?
- Do they guarantee connection speed?
- Is the balance between initial and monthly costs appropriate?
What are the advantages and disadvantages of free-internet properties?
Advantages
- Effective as a vacancy measure：It becomes a major selling point when recruiting tenants
- Basis for raising rent：As a capital improvement, it may justify adding 1,000 to 2,000 yen per month to the rent
- Longer tenancy periods：Because tenants do not need to cancel and re-sign internet service when moving, it can help reduce move-outs
Disadvantages
- Dissatisfaction with connection speed：If line capacity is insufficient, it can lead to tenant complaints
- Running costs：The landlord needs to bear the monthly line charges
- Obsolescence of equipment：Because communication technology advances quickly, periodic upgrades are necessary
Frequently Asked Questions (FAQ)
Which should be prioritized: free internet or other capital improvements?
In tenant surveys, free internet consistently ranks near the top. From a cost-effectiveness perspective, we recommend prioritizing internet infrastructure first.
Will installation work affect tenants?
When line installation work is carried out in common areas, temporary access restrictions may occur. Notify tenants in advance and coordinate the construction schedule.
Should you choose fiber-optic service or CATV?
If you prioritize connection speed and stability, fiber-optic service is recommended. If you are considering bundling it with television service, CATV is also an option.
How much can rent be increased by offering free internet?
In general, adding 1,000 to 3,000 yen per month to the rent is considered feasible. Set an appropriate amount by comparing it with nearby market rates.
