Utility Charge

Utility Charge

Hi folks, I am a new host doing short term rentals in AZ.  I'm wondering if anyone ever add an additional fee for utilities.  Utility bill (air conditioning) can be as high as $400 or more during the summer months.  I have installed a new electricity meter that can track the usage by the day and can be prepaid based on the expected usage.  I thought this would be a good tool to manage costs.  I'd love to hear what others do in terms of electricity.

4 Replies 4
Gillian19
Level 10
St Leonards, Australia

I include it in the nightly rate. I wouldn't be too happy as a guest if I were charged extra for basics such as electricity. I have installed an additional product on my airconditioning so that it turns off if there is no activity in the room for a period of time, or if the door is left open. This will at least stop guests leaving the air-con running when they have gone out.

Allison116
Level 10
Walnut Creek, CA

I agree with the other post. It is part of your nightly rate. So if you want it covered you should set a higher rate in the summer than in the winter. However, I know from personal experience that in AZ hotels are actually cheaper in the summer because of higher vacancies .so it just may mean you can’t charge more in the summer and you just make less .

Rene-and-Zac0
Level 10
La Quinta, CA

@Lori145 we also have a place in the desert near Palm Springs. Our power company lets you see your previous days power usage on their website. I had been tracking the usage and the outside temperature spiked to about 118 degrees for about a week. The power usage skyrocketed and the bill was $678. I knew something was wrong because no way should we be using that much power. Well of course, on Labor Day weekend, the AC unit decided to stop working on Sunday afternoon and it was lik 119 degrees outside. The AC company was great, Adam from Airflo came out the next day(holiday) to look at the system. A wire had shorted out and burnt a hole in the Freon line and escaped all the coolant. The previous AC was installed in 2006, so it was old. It was a 3 ton unit and was very inefficient. I ended up upgrading to a 5 ton compressor because I didn’t want the same problem of the unit struggling to cool the house. I also installed the Ecobee3 WiFi thermostat. The Ecobee thermostat allows you to remotely control the thermostat temperature, turn the system on and off, set a certain temperature or temperature range. The Ecobee also lets you lock out the guest with a password, so they can’t play with the settings. My power bill went from $678 to $195. They power company also gave me a $135 bill credit for buying the WiFi thermostat. Now I control the AC for the guest. I set the range at and tell the guest the AC doesn’t go lower. Obviously guest were just pushing the AC down to the max cold and using gobs of power. I also replaced every light bulb in the house with LED light bulbs. My power consumption is now under control and tightly regulated. I have calculated that the house uses about $2 a day when it’s empty and $10 occupied, in power. I just factor that into the rate. Just another example, I just put in a new pool heater. $300 a month to heat both the pool and the spa. I factored that new cost into my rates and I raised my rates to cover it. This is not a charity. This is a business. The guest has to absorb all the cost associated with the business. Competition is so tough on Airbnb. In my market, host pitch tents in their yards and charge $100 a night. Now I have to compete with these listings too? 

The difference in your electricity bill with the new thermostat is simply amazing!

 

We live where the climate is more temperate, so we don't have much experience with air conditioners and such.

What is a typical power bill for a normal house with air conditioning in your town?

Is it usually that high?