Offering incentives like “free” cable has long been one popular strategy property owners adopt to price a higher rent. For the longest time, tenants eagerly paid the extra cost. Recently, public demand for cable TV is rapidly changing, concerning some property owners and making them reflect if it might be time to cut the cord on their rental home’s cable TV.
Since 2012, over 10 million people have canceled their cable subscriptions in favor of new, lower-priced streaming services like Netflix and Hulu. For these individuals, a lot of whom are renters, “free” cable doesn’t hold the appeal that it did before. Even though for some, cable TV still gives that feeling of comfort that relates to convenient living. Before you choose to end your Filer rental property’s cable TV, it is vital to muse upon all the pros and cons of doing so, as well as communicate with your tenants about their wants and needs.
Including cable TV in your rental rate is reasonable for many locations and demographics. For example, in case your target renters include avid sports fans, they are more excited about having live television services, and will often be glad to pay more extra rent to have it included.
A number of tenants do not like signing up for cable services that will lock them into long-term contracts because they are unsure as to how long they will be dwelling in the home. They may also hate the struggle of contacting customer service each time something goes awry. For these tenants, a rental home keen on giving cable TV offers a strong incentive to pay a little extra to not go through such a difficulty.
But, younger tenants may or may not find an offer of “free” cable to be worth a higher rent. Streaming services are becoming the go-to choice for those who find cable TV lacking in viewing options. Even though streaming services are pricier, a lot of young people will share a subscription or sign up selectively to save money. For these people, streaming services grant them the power to decide when to sign up or cancel if they want to.
For Filer property owners, there are usually strong incentives to include cable TV as part of the rent. For example, internet providers will often bundle both internet service and cable TV, lowering the cost of both. For particular locations and demographics, being able to provide internet service and cable TV may give property owners a competitive edge. The most straightforward approach to know for sure if offering cable TV is perfect for your situation is to ask your tenants, either current or prospective. They can tell you better than anyone what the expectations are and how tenants may answer to including “free” cable TV.
If you’ve chatted with your tenants and they do not want cable TV, it may be possible to temporarily discontinue your cable service while leaving the cables intact. Contingent on the service provider, you may be able to suspend or even cancel service quite easily, saving you the cost of paying for it each month. You could then bargain for a slightly lower rent or, if you choose, pocket the savings.
Figuring out if keeping your cable TV service is the right move for your rental properties can take time, and for rental property owners, time is money. Real Property Management Magic Valley can help you evaluate cost savings aspects, communicate effectively with your tenants, and more. Contact us online or call us directly at 208-734-4001 today.
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