Charging extra for electricity

[Ynez0]

I have a one bedroom apartment I rent out for vacations. I usually charge people for using the electric as here in Mexico, the electric is so expensive, and i only charge a modest fee for my apartment. It also deters people from using it all the time, leaving it on unnecessarily. 

Not one of my guests has ever had a problem with this.

Today, my last two guests felt it was very unfair to have this charged and said I wasn't clear about it at the beginning. I read through the guest book in the casita and it does say they will be charged, although I thought I had made this clear on the listing, apparently not. I only charge this to cover the cost, not to make money. 

Refusing to argue about it, I told them to leave it - despite it being the highest bill ever, since they used the AC almost all the time, leaving it on when they went out. I am a small, sole property owner. As my guest (from London) said 'it's expensive here'. Yes, it is. That's why I can't afford to pay for your electric, when you have used so much.

Their argument was that I was not explicit. I told them I was going to read the meter when they arrived, but they did not understand...nor did they read the guest book in the casita, where it says on the first page how it works...

this is the first time in 16 months that anyone has left my place with a bad vibe. I'm very upset about it as I don't wish them to feel bad, nor me. 

Lesson learnt. Spell it out. Clearly. And then explain again. 

😞

[Susan1188]

@Jason2521  
These have been my rules for the past 5 years, with over 700 guests.
Maybe it turns some people off but those are the guests I don't want!

If you are an Airbnb host you know that you can never "just charge what you want".  Any resolution request you send to a guest is subject to their approval
And Airbnb customer support mediation
And will only be paid to you if Airbnb customer support decides you are right
And we all know Airbnb customer support will always side with the guest.

My rule of 4 euros per day electricity allowance is dissuasive and it's there to weed out bad guests and save against true and exaggerated wastage.

I've never asked a guest for electricity fees but I could, if for example there were other issues, damage, etc.

I have the exact usage of each day, hour by hour, and I could show client support the trend over 4 years and prove that a given guest had the airco on and windows open the whole stay.

It works for me!

[Trust-Management0]

Hello! My electric bill was almost $800 during July-Aug for a 30 day booking. I'd talked to an Air BnB rep; they suggested I take a deposit going forward. Here is my verbiage under House rules:

After booking is confirmed, a security deposit will be required for $700.00 in the event that the electricity usage goes over the allowed amount of $200 per 30 days; overage will be deducted from the deposit, any remaining amount will be refunded after 7 days from check-out to ensure electricity bill has been finalized. Security deposit will be charged to your payment method.

[Debra300]

@Trust-Management0,

This is what we have written in the Things to Know section and House Rules of our guest suite listings:

"A refundable deposit up to $300 USD will be collected via Airbnb payments when the free cancellation period ends. Guests will be refunded any unused amounts at checkout.

The nightly rate includes 22 kwh for electricity usage, and guests will pay for excess usage. Each studio has its own meters, and we charge the local rate of $0.45 USD per kwh."

We chose to list an energy allotment and the local billable kilowatt rate, because the cost of energy is dynamic, and if prices rise a set monetary value may not provide sufficient energy for a typical guest's daily needs.  The energy volume that we include in the nightly rate was based upon 16 hours of air conditioner use and regular use of the other appliances.  There are energy meters on the wall that's along the walkway to the suites, and guests may easily see their usage.  The amount of the deposit determined by the length of stay and the guest's intended activities/reason for visit (e.g., an expatriate returning to visit family and friends will spend the majority of the day away while a couple having a getaway weekend may stay indoors the entire stay).

[Devin196]

This should be in the listing. I am supposed to reserve the place and find put after that the listing is not what you see is what you get?  Sure put it in the rules, of course but if a price is advertised and it is not explicitly positipned just as much as the benefit that there exists a downside ie electricity is extra the host is being intentionally devious in order to rent there space. Should not be surprised when people object. Guests were told they were getting one thing then haha actually something else

[Dave1018]

I'm thinking of implementing this strategy also, has it impacted your booking rate?

[Agnieszka67]

That's what we will also do now, taking a safety deposit. Simply too annoying (and sometimes too painful) to run after guests not settling additional charges like electricity or other stuff outlined as an extra in the respective sections of the airbnb listing.

[Kjetil6]

Airbnb should come up with a solution  to list electricity cost just as cleaning fee.

given the crazy electricity prices Europe is seeing now , this will affect the bottom line for many hosts.

I have listed the cost in my advertisement (as price eur/kwh) and i have a meter the guest can read their usage installed in the Appartment.

But if the guest refuses to pay after check out , that has happened more than once. Airbnb resolution center will not do anything to help the host.

They just say” we are unable to compensate for excessive use of electricity, gas, fuel, water or other utilities.
Therefore we are closing your case with us.”

[Benoit438]

I have been screw recently by electricity surcharge. Beware to read all the rules of the host. They mentioned in one of my reservation that over usage of electricity will be charge but they never define over usage so at the end I was bill for a normal usage of electricity. I think some host a squeezing guest to pay more and more. Too bad Airbnb don’t care about this issue…

[Agnieszka67]

The often mentioned idea with including such cost in the rent price could work if guests consume energy more or less at similar levels - but they do not!

In our case, most are very reasonable and careful, also for eco reasons. Others are lazy and/or do not care and do not use the provided free firewood for the cosy fireplace, but instead use (charged out) electricty for electric heaters, and not for the first time regulating the temperature via the windows at outside -20°C. For those guests, the cost of electricity usage (and waste) can easily exceed the rent price, easliy!

Given the above, it would be extremely unfair to reasonable guests adding an electricity fee lump sum to the published rent price - they would simply to a large extend pay for the "energy wasters".

So we installed Meters, take photos and charge out accordingly after Check-Out. To stop having unwanted surprises, we will start taking a safety deposit payable before or at Check-In.

Generally speaking: when it comes to valuable resources like energy for heating and also water, the concept of "all-inclusive" is a concept of yesterday. It only invites to waste...

[Suzi224]

I had tenants that put a hot tub on my porch while I was away on a cruise. My hubby gave permission. The two months they had it there, the bill was $942.60. I am trying to find out if it is legal to hold thier security deposit. If someone knows, please chime in as well. 

[Troy331]

Very deceptive tactic to lower your nightly price! This is just basic stuff. The electric is supposed to be included. No one should have to read your guidebook prior to check-in. I ran into this same problem in thailand with hosts going rogue because there's less oversight outside the U.S. I'm sticking to hotels now even though I genuinely like the renting homes. **

I'll kindly enjoy my titanium ELITE status with Marriott, IHG diamond, and Hilton Gold...

**[Content removed inline with the Community Center Guidelines- Please be respectful in your discussions with other members]

[Susan1188]

I understand your point of view as a hotel guest.

Airbnbs are different from hotels.

Even in 5 star hotels your thermostat is regulated by the reception and the minimum temperature set, often turned off during the night.  They have cleaning staff in each day to see if you've left the airco on full blast with the windows open.  The space is smaller you don't have a full house where you could wastefully leave various appliances on such as hot tube etc.

If you are getting the keys to someone's house or apartment, the situation is different from a hotel and thank goodness hosts are still allowed to set some of their own rules!

Happy travelling.

[Elaine701]

@Ynez0 

We are all in the hospitality business. in that respect, an Airbnb is more similar to a hotel than it appears. Hotels are largely what you're competing with.

Excessive electricity consumption is certainly a problem, but guests don't book something expecting to be restricted on technicalities.

So, other hospitality businesses take measures to "guest proof" their accommodations. It's an essential part of the business. 

One way is to get a wifi thermostat (not expensive at all) that you can control with your smartphone , and don't give the guests access to it. Set the Aircon at 22-24°c and tell them if they need it warmer or cooler, you'll be happy to give them a degree either way. That way, you'll know what your expectable costs will be, and just build it into your price (no need for a separate charge, which most guests will perceive as "profiteering"). 

Next, this may be impossible for many hosts, but in areas where  electricity is so expensive, consider investing in solar power enhancement to your regular power system. The costs have come down considerably in the past 5 years, and the cost savings on electric bills can actually pay for themselves in just a few years if your electricity is charged at very high rates.

You're in the hospitality business. Guests aren't interested in how much you pay for electricity, nor how much they use. They're on holiday. They're not thinking about that and won't. And in a hotel, they don't need to. That's your competition.

Guest-proof your accommodation as best you can, and this type of thing will eventually become a thing of the past.