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Even though there is often a queue of people lining up to rent a good quality property, there is definitely a case for making it as attractive as possible.
Renting a property is easy. Renting it to the right target audience and finding reliable tenants isn’t always as straightforward.
One way to attract suitable tenants is to provide more than your average HMO or rental property. You could consider offering broadband as part of the package or a temporary broadband connection that tenants can use while arranging their own contract.
This guest post is going to discuss broadband for landlords, the benefits of offering it as part of the property, and the considerations for setting it up. By the end of this post, you’ll know whether you want to include it in your properties or not.
The Importance of Broadband to Tenants
On average, we spend over 6 hours per day on the internet. It’s an essential utility even if you don’t work from home.
Ask anyone about broadband and most of your target market will say they regard broadband as a utility, with the same importance as gas, water, and electricity.
Having it installed already in a future home is a big selling point.
1 million home movers go without internet for 8 days. If you offer it as part of the rental property, that’s another tenant pain point taken care of!
That’s even more true if the future tenant works from home or runs an online business. That lack of downtime could be the deciding factor.
Is It a Legal Requirement to Provide Broadband for Tenants?
It is not a legal requirement to provide broadband, but it is a significant benefit to them.
The ability to have fast broadband will be important to the vast majority of tenants. Even if you don’t provide it yourself, you’ll benefit from ensuring they can get some kind of connection.
Having a broadband connection, even if the tenant manages the contract themselves, means predictability in terms of speed and connection type. If your tenants work from home or are heavy internet users, that’s another reason to choose your property over another.
Let’s discuss providing a broadband connection in a rented property a little more.
Convenient Broadband is a Selling Point for Tenants
Having a broadband connection in place in a property means tenants can easily compare deals and arrange connection when they’re ready.
It means not having to go without a connection for those 8 days and knowing in advance they aren’t moving somewhere with slow speeds.
Just how much it will benefit tenants will depend on your target market:
- People who are cash-rich but time-poor will appreciate the convenience
- Young professionals value broadband as much as heating and lighting
- Students expect a fast connection wherever they live
- Non-tech savvy tenants will have one less thing to worry about
Will Broadband Add Value to the Rental Property?
Having a broadband connection won’t necessarily add value but it will make the property more desirable. If you plan to provide a broadband connection, it will make it more appealing.
If you plan to provide a full broadband service as part of the rent, it will be more appealing and you can charge slightly more. As long as you’re transparent about the speed, contract limitations, and the cost implication for the rent, you should find your property is a much more attractive prospect.
If you plan to offer a full broadband service don’t forget to review your broadband contract regularly to ensure you’re getting a good deal.
What Type or Speed of Internet Should I Get for my Rental Property?
What type of speed of internet you get depends on your target market and their intended use. The best place to start looking is a broadband comparison website, this will give you a good idea of what products are available at the address.
Most tenants will appreciate a fast connection, but the fastest fibre connections will be most attractive to a younger or tech-savvy demographic. Slow broadband can be a deal breaker for many tenants in all rental properties with the exception of the most rural properties.
28% of people would pay more for fast internet. That’s how important some of us value a fast connection!
73% wouldn’t move to an area without fast internet. Another good reason to provide a connection, if not a full contract.
When looking at providing broadband, consider what tenants are like to need the internet for. In all cases, we would recommend going with an unlimited broadband contract, so you don’t run out of data.
Broadband Speed Will Depend on the Size of your Rental Property
The larger the property, the more tenants. And the more people using the internet at any one time, the faster the connection will need to be to cope with it.
On average, we recommend providing an average of 30Mbps per 1-2 people.
If you’re targeting young professionals or couples who might work from home or larger families, the faster the better.
What If Tenants Don’t Like the Internet Contract?
Tenants not wanting the internet is very unlikely as nearly all of us spend time online. However, some tenants may prefer to arrange their own contract or exert a little more control over their circumstances.
It’s your choice whether you accede to that or not. We would recommend working with the tenant on this. They are more likely to stay longer if they can have a little more control over their broadband. Broadband is a simple, but important way to exert a little control.
What If a Tenant Requests to Cancel or Change the Contract?
If a tenant requests to cancel or change the contract, check when your current contract expires and let them know.
If you’re out of the fixed period, you are free to decide what you do and either work with the tenant, or not. Alternatively, you could check your current provider and see what speed or feature upgrades are possible and let the tenant pay the difference.
Most providers don’t like you cancelling partway through a contract but few will mind if you upgrade.
What to do if your Broadband Contract is Not Up for Renewal?
If you cancel a broadband contract early, you will likely be charged an early termination fee. This is usually the monthly charge multiplied by the number of months left.
You can give your tenants the option to pay that fee for a faster transition or wait until the fixed period is over and avoid the fee.
Once the fixed term is over, you can cancel your contract and give tenants the power to arrange their own.
Is a Tenant Allowed to Authorise Broadband Installation?
If the broadband requires physical installation, a new phone line or fibre connection installation, for example, the tenants will need your permission.
While simple to do and minor, it’s still a material change to the fabric of the property. This will need your permission to undertake. Tenants are most often recommended to seek permission in writing.
Not all broadband requires physical installation. If there is already a phone line or cable connection at the property, installation should require no remedial work. This wouldn’t necessarily need your permission.
If a tenant does contact you requesting broadband installation, we would strongly recommend agreeing. Installing is very straightforward and unobtrusive and would provide an extra selling point for future tenants.
Offering Broadband as a Landlord
We consider offering broadband as a landlord a good thing. It’s another selling point of the property and can help attract higher quality tenants.
Depending on your target demographic and the type of property you’re offering, you can either offer a physical connection and let the tenant sort their own contract or provide the service as part of the rent.
Both options have their pros and cons and it is entirely up to you what you offer depending on your circumstances.
We would strongly recommend offering at least a broadband connection though. The vast majority of renters expect to get online, so any property without broadband is going to be a tough sell even in this market!
