Security Systems News recently released a poll about long term security system contracts against month-to-month security system contracts. SSN asked readers to give their input about a “new” trend where a few smaller, local security companies are switching to month-to-month contracts. While month-to-month contracts are nothing new to the industry, it is generally unheard of with the major security system companies. Before we dive into what they found, we’ll explain the difference between security system contracts.
Long Term Security System Contracts
When you hear about long term security system contracts that generally means having a security monitoring agreement for anywhere from 2 to 5 years. Most security companies offer contracts of about 3 years, generally. The benefit of signing a longer term security system contract is you pay less up-front for equipment and possibly for installation. The security company makes its money back on the equipment discount from your monthly monitoring fee. Security system monitoring is important, and ultimately you should have it for several years – so many homeowners prefer to pay less for their security system equipment up-front and simply pay a small monthly monitoring fee.
Month-to-Month Security System Contracts
A month-to-month security system contract is pretty self explanatory. This essentially means you have no obligation to pay for monitoring past a one month timeframe, and you only pay for monitoring for as long as you want it. The down fall to month-to-month contracts is the significant difference in up-front cost. While in the end you may pay the same amount over time, it often makes more sense for homeowners to pay a little at a time as opposed to one chunk.
SSN’s survey brought back some interesting responses from security system owners and security companies alike. A lot of the smaller security companies around the country offer month-to-month contracts in order to compete with the major security companies. On a local level it works pretty well, but like one reader said, “Companies have been doing this for years..nothing new”.
This brings us to the topic of whether security system contracts are too long, and if month-to-month contracts will take the industry by storm. First, most major security companies do not offer month-to-month contract options. Because they have so many potential customers they generally don’t need to offer a month-to-month incentive, although some of the top security companies will provide this option if you ask. Just expect to pay more up-front. Here at Security System Reviews we are a huge advocates of home security monitoring. With this in mind we have found the security system contracts of about three years are not only the most common, but the most affordable and easy to manage. Like we said above, you will generally keep your security system and monitoring for several years, so why not save some money up-front and pay as you go instead of throwing a chunk of money at a security system that A. you may not like or B. you won’t have monitored. A security system without monitoring is like a guard dog without a bark!
To learn more about security system contracts lengths and security system pricing be sure to visit our security system reviews. We review the best security system companies nationwide. Also be sure to continue to follow our security system blog for up to date news and tips!