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Which Amenities Should You Provide for Your Ammon Tenants?

Mother and Daughter Watching Cable TV in Their Ammon Rental HomeSome single-family rental property owners recognize the benefits they can gain from offering certain amenities to their tenants. Many Ammon 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, in some cases, is not only good to make your rental home more competitive but it also does a lot to attract tenants as well. On the other hand, the amenities offered may not be what some tenants are looking for. This 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 location has a high population 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. They may be looking for a rental home that adds cable and internet services as well as utilities. Especially if you plan to rent out your home to more than one person, providing such amenities can eliminate conflict and they wouldn’t have to deal with the issue. 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, in some markets, it wouldn’t make sense to provide amenities like cable, internet, and utilities. For some demographics, it wouldn’t do you any good. Even with the popularity of internet service and cable television increasing, not all renters may want or need it. For these tenants, having them pay more for a service they don’t want would just drive them away.

Many renters like to be the one to choose for themselves whether they pay for these types of amenities, as well as have the freedom to choose their own service providers. This goes for utilities as well. There are some areas, especially those with more than one option for utility service, where tenants would rather set up and manage their own services with the provider of their choice. By doing this, you are also giving them more control over how much they pay for those utilities, rather than paying a fixed sum included in their rent.

Either option brings with it different pros and cons for property owners. Setting up cable, internet, and utilities in your name give you more control over the services available or installed on your property. The property owner would have to contend with abandoned satellite dishes or other paraphernalia if they leave the choice of provider up to the tenant. But if you get to decide, then you can make 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. Together with that are the up-front costs that typically come with signing up for internet and cable service; these costs may prove to be difficult to recoup through higher rent. Since you’re the account holder, the responsibility falls on you to make sure the bill is paid each month, no matter whether your property is leased or not. These cases can significantly impact an owner’s cash flows, at least in the short term.

After going through the pros and cons of offering cable, internet, and utility services, you can then make a sound and well-informed decision. Remember that each situation is unique, which means there is no answer that would be true for all rental homes. But with good information, you can be certain that the choice you make is the best for your rental home.

Feel free to consult the experts in the industry. Contact a professional Ammon property manager today. At Real Property Management Southeast Idaho, we make it our business to help you succeed in the real estate investment game without all the hassle. Feel free to contact us online or by phone at 208-522-2400.

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.