Offering incentives like “free” cable has long been one popular strategy property owners practice to impose a higher rent. For the longest time, tenants eagerly paid the extra cost. Lately, public demand for cable TV is rapidly changing, affecting some property owners and making them consider 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 simply doesn’t hold the appeal that it did before. Although for some, cable TV still gives that sense of satisfaction that equates to comfortable living. Before you choose to terminate your Chubbuck rental property’s cable TV, it is crucial to reflect upon all the pros and cons of doing so, as well as interact with your tenants about their wants and needs.
Including cable TV in your rental rate is logical for multiple locations and demographics. For instance, in case your target renters include avid sports fans, they are more enthusiastic about having live television services, and will frequently be happy to pay a bit more 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 uncertain as to how long they will be residing in the home. They may also dislike the difficulty of contacting customer service each time something goes wrong. 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 problem.
Then again, 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 individuals, streaming services grant them the authority to choose when to sign up or cancel if they wish to.
For Chubbuck property owners, there are every so often strong incentive to include cable TV as part of the rent. For instance, internet providers will often bundle both internet service and cable TV, lowering the cost of both. For specific locations and demographics, being able to afford internet service and cable TV may give property owners a competitive edge. The simplest way 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.
In case you’ve discussed with your tenants, and they do not wish to have cable TV, it may be possible to temporarily discontinue your cable service while leaving the cables intact. Depending on the service provider, you may be able to suspend or even cancel service relatively easily, saving you the cost of paying for it each month. You could then offer 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 Pocatello can help you evaluate cost savings aspects, communicate effectively with your tenants, and more. Contact us online or call us directly at 208-234-1000 today.
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