Most single-family rental property owners regard it as very profitable to provide certain amenities to their tenants. Plenty of Mesa property owners have begun to take into consideration if they ought to add amenities, particularly internet and cable television service just as utilities like water, sewer, and even electricity in the cost of the rent.
And yes, as a matter of fact, in many instances, doing this is not just an approach to keep a rental home more competitive, but also to more quickly bring in tenants, as well. However, some of the renters may unlikely want or ask for the amenities offered, which risks you losing out on potential applicants. Recognizing what your target demographic wishes, and which amenities appeal to your local market, is vital to electing the most appealing solutions for your rental homes.
In countless markets, imparting amenities can be either expected by now or will provide your rental home a competitive edge. It may also allow you to charge a higher rent. In localities with a high number of young professionals or retirees who rent, 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 could be just what they are really seeking. Definitely, if you aim to rent a property to many individuals, providing such amenities can eliminate conflict and make it possible for your tenants to overcome many of the more typical worries of renting a home. In such conditions, you actually could favorably raise the rental rate to cover the costs of each amenity, a higher rate that tenants will very gladly pay for.
Needless to say, providing amenities like cable, internet, and utilities may probably not be logical in some markets or for some demographics. Even with the increasing popularity of internet service and cable television, not all renters may really want or require it. For these tenants, having to needlessly pay more for a service they don’t want just might drive them away.
Many renters want to have the option to decide for themselves whether they pay for these types of amenities, and also the freedom to choose their own service providers. This should also be true of utilities. In several places, specifically those with more than one option for utility service, tenants may opt to set up and manage their own services with the provider of their choice. These give tenants more command and freedom over how much they pay for those utilities, rather than paying a fixed sum included in their monthly rent.
There are both positive and negative points for 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. Instead of having to deal with abandoned satellite dishes or other paraphernalia, a property owner can check that utility or other amenities are not creating an eyesore or damaging their valuable property. Paying all the utilities could furthermore bestow you a larger tax deduction on your income tax return, which 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 might be complicated for a landlord to recoup through higher rent. As the account holder, you will equally need to make sure the bill is paid each month, no matter whether your property is leased or not. Either case can significantly impact an owner’s cash flows, at least in the short term.
After analyzing all the pros and cons of offering cable, internet, and utility services, the last decision of whether to grant them or not is really up to you. Each incident is quite different, what that means is that there is no one correct solution. However, with the right and proper information, you can absolutely choose the decision that is best for you with complete confidence.
Do you want to leave that choice to the pros in the industry? Contact a professional Mesa property manager today. At Real Property Management East Valley, we make it our business to aid you to get good results and truly win in the real estate investment game without all the hassles and issues. Contact us online or call us at 480-658-0869 today.
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