Author: Jamie Kavanagh, Contributor at Broadband.co.uk
Broadband is one of the many amenities tenants expect from a rented property and another thing you have to take care of. Fortunately, managing broadband is relatively easy and can mainly be left up to the tenant.
In this guide, we’ll cover some common questions we see on broadband from the perspective of a landlord.
Do I need to provide broadband in my lets?
You don’t have to provide broadband in your lets, but you should at least ensure tenants can get it.
All you need to do is either have the connection installed and leave the contracts up to tenants or allow the installation of broadband when a tenant requests it.
That’s the limit of your involvement if you want it to be.
Installation is simply a hole drilled through the wall with a wall box on either side. It doesn’t look unsightly and doesn’t unduly damage the property.
Broadband is a selling point
The ability to have a fast broadband connection is a selling point and could improve occupancy or attract your ideal tenant.
In just the same way as off-street parking, a garden and adequate sunlight can help rent a property, so can fast broadband.
Websites like Rightmove include broadband speeds in listings for good reason; people want to see what speeds are possible in a property.
Use the same thinking for your rental and you’ll significantly widen its appeal!
Should I provide broadband for my tenants?
We would recommend providing the means to have broadband but not provide the broadband itself.
The only exception to this is if you live in the property too. Then it’s best if you control the broadband and allow tenants to use it. For a fee.
To compare broadband deals, enter your postcode into a comparison site and find the best deal in your area.
If you’re managing an HMO, the position is the same. We would recommend allowing tenants to have broadband if they want it but leave the management of the contract to them.
They can work out who manages the contract and payments between them. There’s no reason for you to get involved at all.
Letting tenants manage it themselves means less work for you and more choice for them.
One of the few times everyone is happy!
Broadband and contract liability
Even though it’s your property, everything is managed by the tenant who signs the contract.
Even if they leave without paying, the contract follows them. There is no liability for you as the landlord.
The broadband connection is just a pipe to enable the contract. You as the landlord have no liability to payments, contracts, fair use or anything to do with that contract if your name isn’t on it.
This is why we recommend leaving the contractual part of broadband to tenants wherever possible!
Managing rental properties is complicated enough without adding broadband contracts to your workload!
Is there specialist landlord broadband?
There are specialist broadband products but they are mainly tailored for HMOs and multiple property portfolios.
The vast majority of broadband in rented houses uses standard contracts managed by tenants. This type of contract is usually fine for rented properties and will often be cheaper too.
Depending on the type of tenant you’re trying to attract, there are some different types of broadband contracts.
Each offers advantages depending on the type of rental you own.
Fixed-term contracts – Your standard 12-24 month broadband contract. Cheap and plentiful and ideal for standard rented properties and HMOs.
Short-term broadband contracts – Various short term deals are available, including 9-12 month contracts for students.
Rolling 30-day broadband contracts – Ideal for holiday lets and those who don’t want to commit to a longer-term deal.
All these types of broadband require the same cable and connection. It’s just the administration that changes.
How fast should the broadband be?
The speed of the broadband you provide depends entirely on the number of people in the house and how it will be used.
As a general rule, faster is always better, but much will depend on the type and number of tenants living in the property.
This is another reason why leaving it to the tenants is a good idea.
Broadband speed requirements depend on a few things:
- The number of people living in the property
- What they will be doing with the internet, working/streaming/gaming/downloading
- Whether they will be HD video conferencing or using bandwidth-intensive applications
Basic broadband would be suitable for sole occupants or couples who don’t plan on using the internet much.
Basic broadband includes those properties still using ADSL, or an entry-level fibre optic service with a speed of around 35Mbps.
The more people living in the property, the faster the broadband needs to be.
Typically, for families or multiple occupants, speeds >35Mbps is advisable. Fibre to the home or to the cabinet is a current favourite.
That’s especially true if the tenant is a home or hybrid worker!
What if my tenants want to change the broadband contract?
If you do decide to manage the broadband contract for your rental, you will likely come up against this question at some point.
If the broadband you have isn’t fast enough or sufficient to allow the tenant to work from home, what do you do?
You have three main options:
- You could agree to upgrade the broadband speed and have them pay the difference.
- You could tell them to arrange their own, second connection so they are separate.
- Or you could insist they use mobile broadband instead.
What path you take depends on your situation, how far into the fixed period of your contract you are and whether you want to change your contract because a tenant asks you to.
Managing broadband as a landlord
Managing broadband as a landlord is as simple or as involved as you want it to be.
For most tenants, the ability to arrange broadband is enough. They can sign up and manage their own contract without landlord interference.
This leaves you free to concentrate on other things and not have to worry about liability, paying the bill or how tenants use the connection.
We think this is the best possible option for landlords and definitely the path we would recommend taking!
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The Property Voice - Insight from Richard Brown
The topic of broadband in our homes will have taken on even greater significance over the past couple of years, due to the COVID19 pandemic. Even without the switch to home working or hybrid working, so many people now rely on fast and often data-heavy data services, such as gaming and media streaming services. This trend is likely to accelerate, along with the emergence and expansion of the 'metaverse'.
In many 'top 10 lists' of what homeowners and renters look for in a property, broadband is sure to feature prominently. It can literally be the reason why a family with one or more home-based workers and data-hungry kids say no to a property. So, I agree it's a very big deal. From our perspective, as property investors and developers, broadband should be something we explore BEFORE we take on a property or project, therefore. The two basic choices are ADSL/copper (slower) or fibre (faster). I would probably not buy a property to rent unless it could have a fibre connection these days; that's how important it is!
A couple of additional things to consider, from my own experience.
- Connecting a broadband service takes time to do! I believe the average connection time is something like 3 weeks to get broadband connected unless stepping into the same service provider as the previous occupant. I could be wrong on this but it will mean a period where the tenant has no service at the start of the tenancy unless something is done to address this.
- A brand new service for developments/new builds takes even more time! If you are creating new units, then plan the new broadband connection as early as possible. The provider, usually BT, take their time to undertake surveys and plan for the infrastructure to cable to the site. Also, keep in mind that you cannot order broadband without having an address for the property registered with the Post Office. That also tales times AND is usually conditional on having other utilities connected and metered as well.
- Shared houses and short-term lets need more involvement. Jamie mentioned a few times that it is better not to get involved in the broadband setup and contract management, including for shared homes or HMOs. I differ slightly here in my own view, however. Yes, it will mean more admin with the setup, payment and any technical issue resolution, that's true. However, if you go with a fast speed fibre service, pay using direct debit and consider using Wi-Fi boosters in a large property, it's usually not a major hassle. With the exception of student HMOs, most shared houses and short-term lets have people coming and going at different times, so having a fast, reliable broadband service already set up will be easier for the tenants/guests and will also avoid the delay to set up the service too. In fact, most tenants and occupants of these properties expect it to be provided within the rent by the landlord.
- Always check the Internet connection at a property. There are two things on my viewing checklist that always take place that is relevant here. They are a) check the broadband connection type and service and b) also check the mobile signal (4G) coverage at the property. If these generate poor results, in either case, I'd suggest you move on.