For many builders, "high-rise" does not necessarily mean "high-tech." KSI Management Co. in Centreville, Va., is trying to change that. The company, which owns and manages a large portfolio of apartment communities centered in the Washington-Baltimore area ranging from high-rise urban buildings to open garden-style communities, is working with Verizon Enhanced Communities to bring high-tech Fiber Optic Service (FiOS) to its tenants. KSI is currently the Washington area's largest owner and manager of rental properties, which range from luxury locations to affordable apartments with HUD-backed tenants. The company has more than 9,000 apartment units under management and approximately 5,000 units in development. Its average location has about 200 units.

Previously, amenities such as high-speed Internet, cable television and video-on-demand took a back seat in favor of more mainstream, non-tech services. For example, on the KSI Web site, amenities like soaking tubs, ceramic flooring, fireplaces, high ceilings, washers and dryers, crown molding, chair rails, granite countertops and whirlpool bathtubs are displayed more prominently than technology amenities like big-screen TVs, surround sound and high-speed Internet service.

But now, KSI Management Services is bracing for the connection of Verizon's FiOS 100-percent fiber-optic network that will bring phone, HDTV, video-on-demand, expanded channel service and DVR capabilities to its tenants. Cindy Clare, president of KSI, is excited about the upcoming change.

The company's connectivity prior to this deal has varied, according to Clare. "All of our newer buildings offer high-speed Internet as well as cable. Some of the older properties have Internet through DSL or cable modem. All of our communities offer some type of cable service," she says.

The level of service in each community is primarily based on demand. Clare says most apartment dwellers are asking for cable TV and high-speed Internet, but "in some of our high-end communities we are beginning to get requests for wireless connections. There are now more options available to multifamily dwellings than there have been in the past. With the addition of competition for the cable companies, we have been able to offer more options to our residents."

KSI promotes four different levels of dwellings, named Metropolitan, Overlook, Fields and Smart Living. As an example, the Metropolitan at Pentagon City community, located in Arlington, Va., is a high-rise, high-end property with 700-square-foot units renting for $1,700 a month.

Meanwhile, its Avondale Overlook community has two-bedroom, 750-square-foot luxury apartments -- listing only high-speed Internet service as a tech amenity -- for about $1,300 a month.

Amenities are becoming even more important to tenants since KSI launched its Lease to Buy program earlier this year in which renters can earn credit toward the purchase of a KSI condo.

So why make the leap to FiOS? "Having connected buildings definitely makes us more competitive. I don't know that I can put a specific price on the connectivity, but it does help us rent our units more quickly and, equally as important, keep our residents," says Clare.

In addition to the Verizon deal, KSI also works with Comcast and Cox Communications. The specific nature of the marketing-agreement details is not available.

Clare highly recommends other MDU builders make connectivity agreements when possible. "Developers need to know what options are out there," she says. "Verizon also has a very recognizable name among our residents, which will help sell the products."

What Is 'Connectivity' These Days?

Coming to the realization that MDUs require a degree of connectivity is only the first step for builders. Another crucial step is figuring out what consumers want and what is needed to meet connectivity standards. This is how Verizon breaks down its Enhanced Community needs:

Community Infrastructure

• Fiber infrastructure is generally requested

Voice

• Bundled offering of "local," "toll," "LD," "Vertical Service" and "Wireless"
• Provisioning of multiple lines

High-Speed Data

• Dedicated access (always on)
• Faster than basic DSL or cable modem

Video

• Local, HOA/Public Access, cable and satellite capabilities
• Video-On-Demand capabilities

Community Network

• Password-controlled, community-branded Web site that provides school information, community information, email, etc.

Structured Wiring

• Basic wiring and upgrades

Wireless

• Capabilities are requested to support in-home wireless hubs in the future