Some single-family rental property owners find it beneficial to give their tenants certain amenities. Many McDonough property owners are considering including some amenities like internet and cable television service as well as utilities like water, sewer, and even electricity in the cost of the rent. And doing so, as is in many cases, does a lot to make a rental home more competitive, but not only that, it can help attract tenants also. 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.
In some markets, it’s expected that your rental home offers amenities, but in others, it may be what gives you a competitive edge. It may also allow you to charge a higher rent. If your area has a high census 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 be just what they’re in the market for. Especially if you’re renting a home to multiple tenants, providing such amenities can eliminate conflict between them and spare them the hassle. 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, there are some markets or some demographics where providing amenities like cable, internet, and utilities does not make sense. Even though the popularity of internet service is increasing and cable television is ubiquitous, not all renters are looking for it. Requiring tenants to pay more for a service they don’t want would drive them away.
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 may hold true with utilities as well. In places where there is more than one option for utility service, tenants may prefer one provider over another. This means that some of them would want to set up and manage their own services with the provider of their choice. By doing this, you hand control over to the tenants. They get to choose how much they pay for those utilities rather than be forced to pay a fixed sum that’s included in their monthly rent.
There are both advantages and disadvantages to 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. If a property owner gives the choice to their tenant, they may have to contend with abandoned satellite dishes or other paraphernalia. But if you choose for yourself, 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. Additionally, signing up for internet and cable service typically involves some up-front costs, which a landlord may have difficulty recouping through higher rent. As the account holder, it’s on you to make sure the bill is paid each month, and it doesn’t matter if your property is leased or not, you’ll still have to do this. These cases can significantly impact an owner’s cash flows, at least in the short term.
After studying the pros and cons of offering cable, internet, and utility services, you can confidently make your decision. Remember that not all rental homes are in the same situation, that’s why there cannot be one answer for every property. But with the right information, you can make the choice that is best for you.
Consult the experts in the industry. Connect with a professional McDonough property manager today. At Real Property Management Anchor, 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 call us at 770-506-1237.
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