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 is expected to cut 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 numerous consumers.
Having said that, however, more than half of Americans still watch or pay for cable, which means that while streaming services are extensively popular, several still prefer cable services. For this reason, before you wish to withdraw your rental property’s cable TV, you must communicate to your tenants about their wants and needs.
Time to Cut the Cord – or Not?
Including cable TV in your rental rate makes sense for several locations and demographics. Let’s say if your target renters include passionate sports fans, they are more apt to desire live television services and would frequently willingly pay a bit more rent to have it included.
Numerous tenants avoid signing up for cable services that will lock them into long-term contracts since they are unsure how long they will dwell in the home. They may also hate the hassle of contacting customer service every time something goes wrong. For these tenants, a rental home willing to supply cable TV provides a significant incentive to pay a little extra to avoid any inconvenience.
On the other side, younger tenants may or may not consider an offer of “free” cable worth the higher rent. And recent survey data confirms this. As an illustration, 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 are pretty costly, multiple young people will share a subscription or sign up selectively to save money. Streaming services allow these people the freedom to pick when to sign up or cancel whenever they want.
Property owners often have strong incentives to include cable TV as part of the rent. For example, internet providers will often bundle internet service and cable TV, lowering the cost of both. Providing internet service and cable TV for certain locations and demographics may give property owners a competitive edge. The easiest way to know if offering cable TV is right 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’ve chatted with your tenants and they don’t like cable TV, it may be possible 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 rather simply, saving you the expense of paying for it each month. You could then propose a lower rent or, if you want, pocket the savings.
Determining whether to retain cable TV service at your Cedar Park rentals is a tough call. Imagine life if you appointed Real Property Management Advisors to manage your portfolio and make those complicated decisions for you, all while you enjoy passive income! Contact us online to learn more.
Originally published on Nov 1, 2019