Do I need to provide internet at my student properties?
Yes. High-speed internet is now the rule, with 76% of students saying they expect access to the internet in their student accommodation to be on a par with their family home.
Many students are happy to choose their own internet provider and hunt for deals themselves. However, student expectations are changing. More are looking to have some or all of their utility bills included in their rent. This is borne out by national research, as well as Purple Frog’s own findings.
This guide for landlords with student accommodation looks at the options available, when choosing internet services for your rented accommodation.
Dial Up / Broadband / Fibre?
When the internet first launched users could access it through their regular phone line, PCs made calls via their modem to their Internet Service Provider (ISP), the maximum speed to be reached was 56 kilobits per second (kbps) and the phone line could not be used for anything else at the same time.
Broadband revolutionised access to the internet by enabling users to remain constantly connected to their ISPs, using previously unused wires in existing phone lines. This meant that households could attain speeds many times faster than dial up while enabling users to make phone calls at the same time, using the same phone lines.
Fibre is taking internet speeds to the next level. Using fibre optic cables instead of traditional copper enabled providers to provide hugely improved connection speeds. The UK’s fibre network is still being developed.
Below, you can find information about how to check availability of the different services.
Providers and Availability
For most properties there are two main options for broadband services:
1. Cabled service
This is currently provided by Virgin. It’s a dedicated UK-wide network of fibre optic cables which go straight into properties and provide broadband, telephone and TV services.
Availability: Virgin Media is available in about 60% of properties in the UK but they are currently investing heavily in extending the network.
Check availability here: www.cable.co.uk/guides/can-i-get-virgin-media/
Speeds: Virgin Media offer speeds of up to 350 Mbps.
Installation: If a property has been connected to the Virgin Media network within the last three years, you can get connected by having a self-start kit delivered or even pick one up from a local Virgin CollectPlus store. This normally enables you to get online the same day. Otherwise, Virgin advertises a standard of 4 days to get connected.
2. BT Open Reach
Traditional phone lines are maintained by BT Open Reach who lease access to the network to a number of other suppliers such as BT, Sky, TalkTalk, Plusnet etc.
BT Open Reach operates a network of copper wires which covers the entirety of the UK. They also operate a Fibre Optic network called ‘BT Infinity’ which takes super-fast speeds to much of the UK, with only the last few hundred meters of the connection using copper wires.
Availability (Copper Wire Network called Standard Broadband): This network covers all of the UK, BT are obliged by legislation to connect any property in the UK to their network although they may charge for making the connection.
Availability (Infinity): This network is much more limited with mainly urban, densely populated areas benefiting from it’s supper fast connectivity.
Check availability here: www.productsandservices.bt.com/broadband/availability/
Speeds: Actual speeds vary depending on location, but the Standard Broadband package is advertised as having speeds up to 17 Mbps and Fibre up to 76 Mbps.
Installation costs: If your property has been connected to the BT network recently, the wiring and sockets are undamaged, and the line still has a dial tone, it’s likely that you won’t have to pay any connection charges.
If there is not a suitable line already active in the property, then you may need to pay BT’s standard connection charge of £140.
Installation time frame: The time taken to activate a phone line in your property will depend on whether you’ve got an active line already or if one needs to be installed or reconnected in addition to how busy BT Openreach are at the time. Our experience is that installation can take one to four weeks.
N.B. All providers other than Virgin Media rely on BT Openreach to make connections.
Which service should I choose?
While the hardware that connects your property to the Internet is managed by two companies, there are a multitude of companies that will provide your tenants’ internet services.
If you are providing Broadband as part of the rent, then you will need to decide which package to choose.
The following companies compare deals specific to your post code.
uSwitch: www.uswitch.com/broadband/postcode_checker/
Broadbandchoices: www.broadbandchoices.co.uk/broadband
Download speeds
If you provide Broadband as part of the tenancy, you will need to be aware how the number of users will affect download speeds. Simply put, the more people using the internet, the slower the download speeds they will experience.
As many student properties have larger numbers of tenants, it is essential to ensure that bandwidths match the needs of the tenants. This is especially important, as students are regular internet consumers.
We highly recommend having a fibre connection to a house with more than three tenants.
Download limits and fair-use
Many packages are advertised as ‘Unlimited’. This means that there is no cap on how much data can be downloaded, as part of the contract. However, the reality is that many of these are based on ‘fair-use’.
Sometimes, these fair-use limits are enforced by restricting or stopping access to broadband services, once the limit has been met. More often, companies will apply high charge rates for over-use.
If you are providing the internet as part of the rent, this could mean that you might have to pay for tenants’ excessive consumption.
It is worth bearing this in mind when deciding on which provider to use. You should also ensure that you include a clause in your tenancy agreements that cover fair-use of utilities.
There are some specialist suppliers that work in the rental market.
Can Purple Frog help?
Purple Frog offer bills included packages for all managed properties, including with standard or fibre optic connections depending on availability. The service includes a high fair use limit. It also has a provision to help manage tenants’ usage and ensure that they are responsible for paying any charges for over use that they might accrue.
For more information, speak to your relationship manager. If you are not a Purple Frog client, we are happy to peak to you about ways we can help you manage your properties so they meet the demands of the student market. Fill in the form on our landlord page and one of our student experts will be in touch.