A number of single-family rental property owners think it’s really profitable to render certain amenities to their tenants. Quite a lot of Humble property owners have indeed started considering if they should need to add amenities, in particular, internet and cable television service also utilities like water, sewer, and even electricity in the cost of the rent.
And surely, in many instances, doing that is not just an approach to make a rental home more competitive, but, certainly, also to more readily bring in tenants. Nevertheless, various renters may likely not crave or demand the amenities offered, which risks you losing out on potential applicants. Identifying what your target demographic wishes, and which amenities are appropriate in your local market, is simply critical to selecting the most inviting option for your rental homes.
In many markets, granting amenities can be either already assumed or will impart to your rental home a competitive edge. It may also allow you to charge a higher rent. In locations with lots of young professionals or retirees who rent, there may be a strong demand for “all-inclusive rentals,” or properties that offer not just a house, but additional services as well. Adding cable and internet services as well as utilities might be entirely what they are looking for. If you intend to rent a property to multiple individuals, providing such amenities can eliminate conflict and leave your tenants to from most of the usual troubles of renting a home. On such occasions, you could certainly raise the rental rate to cover the costs of each amenity, a higher rate that tenants will indeed readily pay for.
But, unfortunately, providing amenities like cable, internet, and utilities may not be reasonable in some markets or for some demographics. Even with the presently increasing popularity of internet service and cable television, not all renters desire or need it. For these tenants, being compelled to pay more for a service they don’t want just might drive them away.
Most renters really like choosing for themselves whether they pay for these types of amenities, together with the freedom to choose their own service providers. This is certainly true of utilities, likewise. In numerous places, in particular, those with more than one option for utility service, tenants may decide to set up and manage their own services with the provider of their choice. This endows tenants more freedom and control over how much they pay for those utilities, moreover, rather than paying a fixed sum included in their monthly rent.
There are both benefits and disadvantages for property owners themselves. Setting up cable, internet, and utilities in your name give you more control over the services available or installed on your property. Instead of grappling with abandoned satellite dishes or other paraphernalia, a property owner can see to it that utility or other amenities are not creating an eyesore or damaging their valuable property. Paying all the utilities could as well present you with a larger tax deduction on your income tax return, which can help reduce your tax liability.
Still, irresponsible tenants may run up a utility bill, figuring they won’t be paying for the extra charges anyway. Indeed, signing up for internet and cable service typically involves some up-front costs, which could be stressful for a landlord to recoup through higher rent. As the account holder, you will likewise need to make sure the bill is paid each month, no matter whether your property is leased or not. Either condition can significantly impact an owner’s cash flows, at least in the short term.
After reviewing all the pros and cons of offering cable, internet, and utility services, the ultimate choice of whether to offer them or not is yours alone to decide. Each instance varies, thereby there is no one perfect solution. Nonetheless, with the appropriate information, you can positively make the choice that is just perfect for you.
Are you inclined to leave that choice to the specialists in the industry? Contact a professional Humble property manager today. At Real Property Management Avitus, we make it our business to support you in thriving and winning in the real estate investment game without all the stress and headaches. Contact us online or call us at 281-570-6357 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.