Offering incentives like “free” cable has long been one popular strategy property owners use to charge a higher rent. For the longest time, tenants eagerly paid the extra cost. Lately, public demand for cable TV is rapidly changing, leading some property owners to think whether or not 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 folks, a lot of whom are renters, “free” cable simply doesn’t hold the appeal that it used to. Yet for some, cable TV still gives that feeling like it is a needed part of comfortable living. Thus, before you opt to cancel your Wexford rental property’s cable TV, it is essential to ponder upon all the pros and cons of doing so, just as you also talk to your tenants about what they want and need.
Including cable TV in your rental rate makes sense for different locations and demographics. For example, in case your target renters include avid sports fans, they are more inclined to want to live television services and will usually be happy to pay a bit more rent to have it covered.
A number of tenants do not like signing up for cable services that will lock them into long-term contracts because they are not yet sure how long they will be living in the home. They may also dislike the bother of contacting customer service each time something goes wrong. For these tenants, a rental home eager to provide cable TV offers a strong incentive to pay a little extra to not go thru such inconvenience.
In contrast, 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 significantly more expensive, a lot of young people will share a subscription or sign up selectively to save money. For these individuals, streaming services present the freedom to choose when to sign up or cancel if they wish to.
For Wexford property owners, there are usually strong incentives 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 give them internet service and cable TV may boost property owners’ competitive edge. The easiest way to know for sure if offering cable TV is right for your situation is to ask your tenants, either current or prospective. They can let you know what you need to know better than anyone else, including “free” cable TV.
If 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 easy, saving you the cost of paying for it each month. You could then suggest 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 Three Rivers can help you evaluate cost savings aspects, communicate effectively with your tenants, and more. Contact us online or call us directly at 724-804-8254 today.
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