Some single-family rental property owners know that offering certain amenities to their tenants is profitable. Many Logan 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 doing so, in some cases, makes a rental home more competitive and also makes it more effective in attracting tenants. On the other hand, some renters may prefer not having the amenities offered, which risks you losing out on potential applicants. This shows how important it is to know who your target demographic is and what they want. When you have a grasp of the local market, you’ll be able to better choose which amenities you should offer for your rental homes.
In some markets, offering amenities is expected; almost all other rental homes are doing it. Yet, in other markets, doing this can give you a competitive edge. It may also allow you to charge a higher rent. If there are a lot of young professionals or retirees who rent in your area, 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 may just be what they want. Especially if your plan is to rent out the property to more than one individual, providing such amenities can eliminate conflict between them, allowing them to escape many of the more common hassles of home rental. For such cases, you can easily raise the rental rate to cover the costs of each amenity, and these kinds of tenants would be happy to pay a higher rate.
However, in some markets, providing amenities like cable, internet, and utilities just won’t work. For some demographics, these amenities do not make sense. Even with internet service and cable television increasing in popularity, that doesn’t mean that all renters want or need it. For these tenants, asking them to pay more for a service they don’t want will probably drive them away.
Many renters want the freedom to choose whether they pay for these types of amenities, as well as choose their own service providers. It’s the same for utilities as well. Some tenants may prefer to set up and manage their own services with the provider of their choice. This usually happens in areas with more than one option for utility service. Doing this grants the power of control to the tenants. They can choose how much they pay for those utilities rather than be forced to pay a fixed sum that’s included in their monthly rent.
Even from the side of property owners, either option has its pros and cons. 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 enjoy a larger tax deduction on your income tax return if you pay all the utilities. This can help reduce your tax liability.
However, irresponsible tenants may run up a utility bill, figuring they won’t be paying for the extra charges anyway. In addition, signing up for internet and cable service typically involves some up-front costs, and this may be difficult for a landlord to recoup through higher rent. Since you’re the account holder, you’ll have 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 not all rental homes are in the same situation, that’s why there cannot be one answer for every property. But when you have good information, you can arrive at the choice that is best for you.
Consult the experts in the industry. Talk to a professional Logan property manager today. At Real Property Management Cache Valley, we make it our business to help you succeed in the real estate investment game without all the hassle. Contact us online or give us a ring at 435-753-5200.
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