To entice quality tenants and improve effectiveness, some property owners rely on popular strategies like offering incentives such as “free” cable. And in the past, tenants have willingly covered the extra cost. But as public demand for cable TV is reducing, some Richboro property managers are beginning to question if it might be time to cut the cord on their rental home’s cable TV. Let’s analyze a few pros and cons of retaining or terminating your rental property’s cable TV service.
Cable on the Way Out?
According to a 2021 survey, 56% of Americans say they watch cable or satellite TV. Compare that to 76% who said the same thing in 2015. Paid TV lost an estimated 5.1 million customers in 2020 alone while streaming services have continued to grow. Streaming services like Netflix (75 million subscribers), Amazon Prime (50 million subscribers), and Disney+ (45 million subscribers) have become the main alternatives to cable for many people.
Despite this, however, more than half of Americans still watch or pay for cable, which demonstrates that while streaming services are extensively popular, numerous people still prefer cable services. Therefore, before you decide to terminate your rental property’s cable TV, it is essential to have a conversation with your tenants about their wants and needs.
Time to Cut the Cord – or Not?
Including cable TV in your rental rate means something for many locations and demographics. Let’s say if your target renters include big sports fans, they are more likely to want live television services and frequently won’t mind paying a bit more rent to have it included.
Because they do not know how long they will reside in the home, many tenants do not like signing up for cable services that will lock them into long-term contracts. They could also dislike the hassle of contacting customer service every time something goes wrong. For these tenants, a rental home keen to lend cable TV offers a strong incentive to pay a little extra to avoid any inconvenience.
In contrast, younger tenants may or may not consider an offer of “free” cable worth a higher rent. And this is supported by recent survey data. For example, 81% of Americans age 65 and older say they still have cable service, while only 34% of American age 18 to 29 do. Streaming services are becoming the go-to choice for many who find cable TV lacking viewing options. While streaming services entail fees, several young people will share a subscription or sign up selectively to save money. Streaming services give users the freedom to pick when to sign up or cancel if they want.
Property owners often have strong incentives to include cable TV as part of the rent. For instance, internet providers will frequently bundle internet service and cable TV, lowering the cost of both. Providing internet service and cable TV for particular places and demographics may give property owners a competitive edge. The quickest way to know if offering cable TV is beneficial for your situation is to ask your tenants. They can tell you better than anyone what the expectations are and how tenants may respond to including “free” cable TV.
If you have spoken to your tenants and they do not want cable TV, you will likely be able to discontinue your cable service temporarily while leaving the cables intact. Depending on the service provider, you may be able to suspend or even cancel service relatively easily, saving you the expense of paying for it each month. You could then offer a slightly lower rent or, if you prefer, pocket the savings.
Choosing whether to retain cable TV service at your Richboro rentals is a tough call. Think about life if you employed Real Property Management Prosperity to manage your portfolio and make those difficult choices for you, all while you enjoy passive income! Contact us online to learn more.
Originally published on Nov 1, 2019
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