Tag Archives: Bandwidth

Should your room rental include utilities or exclude it ?

When it comes to renting rooms out, there will come the time when you have to decide what you want to include in the rental of the room. You will have to keep in mind that you still want to be competitive in the your neighborhood and not over or under deliver when it comes to the facilities included in the rental. You will have to do your initial research of the neighborhood and the easiest way is via checking out rental ads on the Internet. Best way to do so is to use certain keywords like “room to let ” on Google.

One example that I have recently personally experienced took sometime for me to decide on as it meant forking out additional expense each month if I decided to proceed. It was to do with increasing the bandwidth of the Internet connection in the house. It was running on the minimum package of 384kbps unlimited package and I was paying RM68 per month. The upgrade option that I was pondering on was to upgrade to the latest technology of 5Mb Unifi that came with free channels. This upgrade was RM148 per month, which means additional RM80 each month for extra expenses. I was very skeptical as I was hesitant to pay more each month but I had many complaints on the speed of the Internet by the tenants of the house. The house had 10 rooms and it is situated in an area full of universities and very conveniently situated near a shopping mall and close to the train station and bus stops. This is the most popular house among the other 4 houses that I own. Finally I said to myself that I had to calculate the rentals that I was getting each month and deducting all my expenses for that house to see how much I was getting in net profit. I noticed that I could afford it but there should be a way on how to pass this cost to the tenants. I did not want to increase the rentals immediately as it was not the right thing to do but the option to increase the rental on the next tenancy renewal or new rentals would have an increase in the rental. If I made the calculation easy, RM80 divided by the 10 rooms was hardly even RM10 per room so all I had to do was to increase the rental by 10% and I would be already covering the cost of the increase of this expense and still have happy tenants. So was it worthwhile? Indeed it was. I knew I did the right thing when I was in the house and the telecommunication guys were doing the upgrade, my tenants actually ask me whether I was going to increase their rental because of the upgrade, and in my mind, “ka ching” all I could hear was more money is to come with this upgrade. So basically the more value I give to the house and the room, the more I can charge and the tenants will also be willing to pay for it.