I am negotiating a “bulk rate deal” with my local cable provider for hi speed internet and cable package for my 200 lot park. The cable company is charging me $X, and I’m passing thru the charges to tenants via rent increase.
A rent bump of $X is very high, but the resident is saving 2X (assuming they have cable/internet currently). Say cable usually cost $150. I am billing residents $50 (pass thru), and passing thru as a rent increase. Typical resident is saving $100/mo.
From a marketing standpoint it’s an easy sell, but I am sure there are war stories out there from park owners. I’d love to hear them!
I only provide WiFi not cable. I include the basic WiFi in the rent. The Basic WiFi is for two connected devices and the passwords expire every 30 days. They are emailed their new password once their lot fees are paid. They can pay the WiFi provider for higher level service if they feel a need for it. The Basic plan is good enough to watch Netflix and do emails. The WiFi building is solar powered so most of my cost after installation is the cable company fee the for main line. $50.00 pass through??? As I see it… if your market rates can charge that $50/lot and you are opting to use that $50 for cable … you lose $50/lot. (I found there are much cheaper options for just internet BTW.)
The “PRO’s”: Since they want their internet password… they might pay on time more easily??? I don’t tolerate late payments anyway… so not sure on this one. The other “PRO” is that I just signed up for Rent Manager and a current email is required… they have no argument regarding having no internet to provide me with a current email since I KNOW they have internet service…LOL
All that said… I would not do it again. On my next parks… I will not offer this as a benefit. It didn’t attract new customers and it is a HASSLE. I have basically become an unwilling IT person when people can’t sign on for some reason. Totally not worth it. Just my opinion.
I am in agreement with Jsmith, stay out of the cable provider business. Let your tenants deal with the provider themselves. There is no upside to you providing any services unless it puts more money in your pocket.
Stay out of the business of financially assisting tenants when it puts you I a position of responsibility.
I wanted to bump this thread and see if any park owners had signed up for a bulk rate cable deal and found:
Residents liked it
The profit margin was wide enough to justify the administration
I’m skeptical it’s worth the effort, especially in an industry where many residents likely don’t have both cable internet and tv, but I’d be curious if anyone else has had any other experiences.