Utility Costs - Any Thoughts?

[Dan22480]

Hello! I am wondering if anyone has any thoughts about how to help control excessive utility costs from guests. I am a host, and am trying to plan for the future about how I might handle these costs. I'd love to say to a guest something like - if the costs are more that $150 a month (at the high end for my apartment) you would be required to pay the balance. It seems like Airbnb doesn't really offer any kind of security deposit function for hosts like me, and they don't allow private contracts outside the platform. 

I can try to monitor and place limits with my smart thermometer, but I don't want to upset the guests.

Any other options besides building in a high utility number in the overall price?

Thanks!

[Tekena0]

Hi

i factored this into my bill that is why I increased it to accommodate this variable. You have limited control of this use. It’s the cost of the service rendered.

thank you 

[Victoria2195]

I’m not sure either.  I buy one set of batteries for fans and lighting.  I rent out tents.  The wood heat I buy one cord of wood anything after that the guest pay for,  I buy one small tank of fuel for my Buddy heater I have what I provide in my description of my property.  So if they run out I politely tell them I only furnish one set of batteries that’s why I say keep lights off till needed and use the kerosene latter as much as possible to save battery life.     

perhaps charge the guest extra after review if they go over your fees for utilities.  Even water is getting high too.   Or you could have a limit on how long they stay so they want go over your limit.  

I don’t know.  Goood luck. 

[Joan2709]

Hi @Dan22480 

Just to clarify....you will be doing what Airbnb considers long-terms stays of 28days or more is that correct?

If so, many Hosts have a separate rental agreement for long-term stays regarding utilities which can include requiring guests to pay utilities over a certain amount (be sure you include which utilities  you are including in your cap (water, electric, trash, etc.) Most hosts don't consider including Wi-fi/internet, as that is typically a fixed cost per month and its normally free to guests and the Host pays for it. You would have to have a way to get the guest to sign the rental agreement electronically and a way to have them pay you electronically for utilities over your cap. 

Some Hosts include utilities for 1-6month stays in the rental rate, but require guests to put utilities in their name for 6month+ stays. Nothing wrong with using your smart thermostat to set reasonable temperature limits, as long as you disclose this in the listing and rental agreement. It's better to control this rather than chase after the guest for money if they go over your cap. Something like:

"We're committed to reducing our carbon footprint and being eco-friendly. Please feel to adjust the temperature between 68°F and 75°F to suit your preferences, and we kindly ask that you be mindful of your water use during your stay. Your support is greatly appreciated—thank you so much!"

[Dan22480]

Thank you @Joan2709 ! Very very helpful!

Yes exactly - stays for 28 days or more. 

It wasn't clear to me that Airbnb allows any kind of contract outside of their standard agreements. Do you know this for sure? 

[Joan2709]

Hi @Dan22480 

Airbnb does allow hosts to require guests to sign a separate contract/rental agreement. However, you MUST disclose the actual contract language PRIOR to a guest booking. Most Hosts that do this post the language in Addl Rules and respond to a guest inquiry notifying them of the requirement to sign a separate agreement prior to booking and providing the exact language in a message to the guest. It does make for a pretty lengthy Add Rules section though. BTW, Vrbo allows Hosts to upload their own rental agreements to the listing; not sure about enforcing terms though.

That said, even if you have a signed rental agreement, there are no guarantees that a guest will comply or prevent someone from claiming tenancy after a 28day stay (in most states) even if your rental agreement states they are not a tenant. 

Airbnb also states they cannot enforce any terms in your rental agreement:

Guest Contracts

https://www.airbnb.com/help/article/2824

If a Host asks you to sign a contract

https://www.airbnb.com/help/article/465

"Some Hosts ask guests to sign contracts or rental agreements. This is so the Host can legally enforce certain rules protecting themselves and their property. You should be made aware of this requirement before you book. The Host must prominently disclose the actual terms in their listing description. If you have questions about the contract, you can discuss it with the Host. You’re not obliged to sign anything. If a Host tells you about an additional contract after you’ve made a booking request, you should review the contract within 48 hours of receipt of the full terms. If you are not comfortable with it, you can decline to sign it and ask your Host to cancel your reservation without a cancellation penalty."

If you're planning on offering 28+ stays, I would definitely at least add that sub-letting is not allowed. Seems to be a big uptick in that lately. 

I would do some of your own addl research and perhaps speak to an attorney, as most rental agreements must contain specific language to be valid and are state-specific.

[Tracey648]

Being a host is risky so I feel the cost should be a forethought in the price per night. We are providing a service and should make it as convenient as possible for our guests. I understand that some guests may not be considerate when it is not their own home, but you probably won’t receive a full cost of expenses until your guests are long gone. 

Maybe for Airbnb can include an incidental charge prior to completely checking out a guest before you can fully review them. This can be partial control. 

I am in California and I installed solar panels to control the cost of electricity on my property. I know this isn’t practical for everyone but being strategic with pricing can alleviate the headache for you. 

For me it’s a mix of things that may work for your scenario. Great discussion.