The amenity that makes a difference.

Residents' desire for broadband instead of other Internet connection means is growing at a rapid clip. Broadband is the fastest Internet connection available, either wireless or through a wired connection.

The latest figures from Nielsen/NetRatings show 39 million, or 13 percent of Americans, connect via broadband in the United States. The rate of at-home users grew 49 percent year-over-year. By the end of 2003, at least 7 million people (or 39 percent more than last year) are expected to switch from the slower connection, known as narrow-band or dial-up, to a broadband connection, such as Digital Subscriber Line (DSL) or cable. It is estimated that by 2006 wi-fi will reach 23 million users.

One multifamily housing community found that broadband helped reduced vacancies.

"Our property a year ago was suffering," and now it is wired for broadband, said Jen Metzger, project manager at Metzger and Co., which has properties in Georgia, Indiana, Ohio, North Carolina, South Carolina, Texas and Virginia.

"A few years ago when we didn't have broadband available we started losing potential residents. Other property management firms and developers have noted the trend and are ensuring that Internet connection technology is installed."

After installing broadband service, Metzger's Riverbend Apartments in Charlottesville, Va., had a successful lease-up period, achieving more than 95 percent occupancy in 12 months.

The 'Big Deal' About Broadband

Broadband Connections have obvious advantages: They are always "on" (no more dialing up to connect), the connection is 10 to 30 times faster than dial-up, and it allows easier access to video images (such as a movie download) and faster Web shopping, e-mail use and Web surfing. Builders and developers who take the growing Internet lifestyle into account with their developments will benefit from including broadband in their amenity list. In short, broadband-wired buildings will find their developments leasing faster and to the more affluent.

"People, in general, are very 'Web active,'" said Metzger. "They will only move to where they can get the best and fastest technology. When we first retrofitted our Atlanta building, we immediately stopped losing tenants and found we could offer the service competitively."

She added that broadband installed during construction is ideal. Retrofitting is possible, but it's more of a hassle. "We will never build anything again that isn't pre-wired for high-speed Internet access," Metzger said.

Selling the Idea

There are two ways to offer broadband: as part of the rent or as an add-on from $35 to $50 a month. Some developers offer a 60-day free trial and few residents, once they have experienced broadband, will give it up.

Metzger said that they offer it free for 90 days and then it goes to a pay model.

"They write a check with their rent," Metzger said, finding that 85 percent to 90 percent of residents continue the service.

Another model is to include the offering as part of the rental payment. Some properties boast "free" high-speed Internet access, meaning the cost has been built into the monthly rent.

Developers and property owners also can include in their marketing materials a few lines about the speed of broadband and what people can do with it. For instance, downloading a two-hour movie took about 18 hours via a DSL connection just two years ago. With a broadband connection, the download may take just over 45 minutes.

Wade Tremblay, general manager of Wade Apartments in Charlottesville, Va., said marketing his properties' broadband connection helps him stay competitive.

"We now include broadband connections (no charge) at about one-third of our properties. I am working as fast as I can to wire my remaining properties to include the same," he said. "I am primarily in the student housing business, and I believe broadband connections are almost as important as running water. For competitive reasons, I have chosen to include this service in the base rent."

Wires and Connections

It is important to note that all apartment may be wired for broadband, however, a resident must commit to a service contract to use the system. Developers and apartment managers can recommend vendors to residents or develop a partnership with a broadband provider to offer discounted broadband connection service from that provider.

Some broadband vendors offer the installation and connection at wholesale cost, allowing the developer or manager to benefit from the connection price for a fixed amount of time. Property owners can earn additional, residual income as a percent of the connection charge.

Security and Privacy

Security and privacy in a broadband connection is similar to other Internet connections: a good provider will monitor the performance and maintenance needed 24 hours a day, seven days a week to ensure the connection is not severed. Broadband connections allow for a high level of security and privacy, although installation of an appropriate firewall, anti-virus programs and other protective measures are required for a resident's computer. By addressing security concerns early, the users comfort level with broadband will increase.

Metzger said, "We haven't had any issues with security."

With "smarter" apartments being requested by new residents, builders and developers who add broadband to their list of features will be delivering an already-desired product. By installing the most future-forward Internet connection technology--and marketing it the right way--property managers will find their residents faster and keep them around longer.

Jeff Cornejo and Baylor Fooks co-manage Blue Ridge InternetWorks, which offers creative broadband solution for the housing industry, including single-family units, multifamily dwellings and apartment communities. Visit www.brnets.com for information.