Some single-family rental property owners know that offering certain amenities to their tenants is profitable. Many Davie property owners have thought about including amenities such as internet and cable television service as well as utilities like water, sewer, and even electricity in the cost of the rent. And certainly, in many cases, this does make rental homes more competitive and also makes it easier to attract tenants. On the other hand, there are some renters that do not need or want the amenities offered which risks you losing out on potential applicants. This shows that you really need to understand your target demographic. When you know what they want and which amenities make sense in your local market, you will be able to choose the best options for your rental homes.
There are markets where offering amenities is expected and there are others where it would give you a competitive edge. It may also allow you to charge a higher rent. If your location has a high population of young professionals or retirees who rent, there may be 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 may just be what they want. Especially if you plan to rent a property to multiple people, providing such amenities can eliminate conflict since they no longer have to deal with the issue. For situations like this, you can definitely raise the rental rate to cover the costs of each amenity, and tenants like these would be happy to pay a higher rate.
However, providing amenities like cable, internet, and utilities in some markets just wouldn’t make sense. You wouldn’t profit with this strategy when renting to some demographics. Even though the popularity of internet service is increasing and cable television is ubiquitous, not all renters are looking for it. You’d be driving tenants away if you ask them to pay more for a service they don’t want.
Many renters want to have the freedom to choose for themselves whether they pay for these types of amenities. They also want to be the one to choose their own service providers. This goes for utilities as well. There are some areas, especially those with more than one option for utility service, where tenants would rather set up and manage their own services with the provider of their choice. By doing this, you are also giving them more control over how much they pay for those utilities, rather than paying a fixed sum included in their rent.
For the property owner, there are advantages and disadvantages to either option. Setting up cable, internet, and utilities in your name give you more control over the services available or installed on your property. If the tenant would select their providers, the property owner may have to deal with abandoned satellite dishes or other paraphernalia. But if you get to choose, you can be sure that utility or other amenities are not creating an eyesore or damaging their valuable property. You can also get a larger tax deduction on your income tax return if you’re paying for all the utilities. This can help reduce your tax liability.
On the other hand, irresponsible tenants may run up a utility bill, figuring they won’t be paying for the extra charges anyway. On top of that, signing up for internet and cable service typically involves some up-front costs, which may not be so easy to recoup through higher rent. Being the account holder, it is also an added responsibility to make sure the bill is paid each month, no matter whether your property is leased or not. All these can significantly impact an owner’s cash flows, at least in the short term.
The final decision is yours alone to make, so do think about all the pros and cons of offering cable, internet, and utility services. Remember that there are different situations and scenarios, which means there is no one solution that would work for all rental homes. But with the right information, you can be sure that the decision you’re making is the most beneficial one.
Consult the experts in the industry. Talk to a professional Davie property manager today. At Real Property Management Asset Solutions, we make it our business to help you succeed in the real estate investment game without all the hassle. Don’t hesitate to contact us online or give us a ring at 954-889-5627.
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