Offering incentives like “free” cable has long been one popular strategy property owners implement to impose a higher rent. For the most part, tenants eagerly paid the extra cost. Recently, public demand for cable TV is rapidly changing, influencing some property owners to evaluate 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 such as Netflix and Hulu. For these groups, a lot of whom are renters, “free” cable simply doesn’t hold the appeal that it used to. Yet for some, cable TV still provides that feeling like it is a needed part of comfortable living. Therefore, before you opt to discontinue your North Hollywood rental property’s cable TV, it is necessary to ponder upon all the pros and cons of doing so, just as you also communicate with your tenants about what they want and need.
Including cable TV in your rental rate makes sense for various locations and demographics. For instance, in case your target renters include avid sports fans, they are more willing to have live television services and will generally be glad to pay a bit more rent to have it included.
A number of tenants do not like signing up for cable services that will lock them into long-term contracts because they are unsure as to how long they will be living in the home. They may also resent the trouble of contacting customer service each time something goes awry. For these tenants, a rental home keen on providing cable TV offers a strong incentive to pay a little extra to not go through such a nuisance.
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 more pricey, a lot of young people will share a subscription or sign up selectively to save money. For these individuals, streaming services grant them the liberty to decide when to sign up or cancel if they wish to.
For North Hollywood property owners, there are generally strong reasons 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 particular locations and demographics, being able to supply internet service and cable TV may raise the property owners’ competitive edge. The simplest 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 their feelings about “free” cable TV.
If you’ve consulted with your tenants and they do not want to have cable TV, it may be plausible 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 every month. You could then recommend 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 Vision can help you evaluate cost savings aspects, communicate effectively with your tenants, and more. Contact us online or call us directly at 818-233-8789 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.