Massive increase in energy prices UK

[Linda3489]

We have been running our property for over 20 years and since Airbnb appeared on the scene we get 99% of our bookings through them. The Barn is attached to our house and we refurbished the Stable which is a lot smaller 5 years ago, so now we have 2. The cost of energy has always been factored into the price and it’s worked OK. Most people are here on holiday or visiting family/friends and are out most of the time. However with people now working more from home it is becoming apparent that they are likely to have the heating on all day if they are not paying for it and with gas prices to massively increase we need to put in a meter that guests can top up if they use more. I was thinking that a meter with £20.00 on it for each week of a stay would be OK with anything they used over that they would have to pay for themselves via a card in the meter.  What are other people thinking on this? We have signs asking people to switch off things if they go out but often they don’t. I think that this situation maybe is happening all around the world not just here in the UK. 

[Mike-And-Jane0]

@Linda3489 Our heating and hot water costs under £2 per night per bedroom on average over the whole year. Yes some use more than others but we just adjust the heating to the lifestyle  of the people visiting and it all averages out nicely.

How much does your heating cost at present?

[Sarah977]

@Linda3489  I don't see anything wrong with your plan as long as you make it clear in your listing info and reiterate with guests when they request a booking, requiring an "I agree" answer from them.

People can be really wasteful with utilities if they aren't paying for them. If they know they will be paying for anything over a reasonable consumption, they'll likely take 7 minute hot showers instead of half hour showers, andturn tbe heat down when they go out or during sleep hours.

I would just make sure that your base "included" amount covers what is reasonable consumption on average, without guests being cold.

[Mike-And-Jane0]

@Linda3489 I disagree with @Sarah977 . I think you will lose bookings if you do this especially as people will not know what the heating could cost them especially if they are from abroad. Without knowing your nightly rate and what your typical heating costs are it is impossible to understand if it is even the right thing to do. Putting up your nightly rate by a few quid might be a better plan.

[Bernard1000]

We have just had a horrific gas bill for our old house . . . I have just put all my prices up by £10 per day.

[Kate867]

@Linda3489 I am not sure that you should.. could?  Change the terms of your listing for those that have already booked.  Perhaps just increasing your rates for nights moving forward for now would be the way to go.  We are just politely requesting guests already booked in our pre check in Messages that they be mindful of their usage of energy given that our current nightly rates do not reflect the increased costs.  We have had a lovely message back from the guest who has just checked in for a four week stay.

[Alix137]

This is something we’re also concerned about. 
I’ve stayed in short term lets before that have a fair usage policy and anything over X amount you use they ask you to pay for - does anyone have any experience with this? How might you go about it and charge them via Airbnb?

[Huma0]

@Alix137 

@Debra300 does something similar. She sets a (generous) limit for energy usage and takes a refundable deposit. Any usage about that limit can then be deducted from the deposit, but she said she never has to do this as this system provides enough incentive for the guests not to be excessive with their energy use (I think in her case more to do with air conditioning than heating, but it could work with either).

Of course, you would need to have a meter that is specific to the guest's space and take readings on arrival and departure. I don't see how it would work for listings like mine where the guests share space with me and other guests.

[Debra300]

@Huma0, 

There are heat cost allocators available to monitor heat usage on radiators.

We calculated the energy allowance by running the (inverter) air conditioners at 23C for a day to see the energy usage of each unit.  This is the only appliance on 220v, and everything else is on 110v (we bought them in the US). The TV, ceiling fan, lamps, kitchen light and refrigerator were also on, and did all or some of the following tasks in each suite: a couple of loads of laundry using the compact washer and spin dryer (but didn't iron anything), used the coffee makers, kettle, blender and cooked a meal on the induction cooktop.  Also, the microwave, cooktop, toaster oven, bluetooth speaker, bathroom nightlight, mobile phone and laptop were plugged in for passive energy usage.  

We have different capacity AC units based upon room size, but found that they consumed an average of 1.15 kw per hour.  The total daily usage of the 110v items was between 2 kw and 5 kw.  Since guests usually leave for at least some part of the day (this is what we want them to do), each night of a stay is allocated 22 kw.  This is enough to run the AC for 16 hours and use the other appliances (we don't go into this level of detail with the guests).  If guests choose to remain in their suite all day, they are more likely to turn off the AC, and open the windows and balcony door, or go onto the balcony to catch the sea breeze (when it's not raining heavily) during part of the day.

Our suites have blinds and room darkening curtains.  At check-in we tell guests that the best way to cool the room is to set the temp at about 26C and run the ceiling fan on low or medium speed to distribute the air.  We also tell them to close the bathroom door when they are not using it (there is a window to vent moisture and odors).  Lastly, we tell them to that before they leave the room during the daytime to shutter the blinds and close the curtains to keep out the heat.

[Huma0]

@Debra300 

It certainly sounds like you did your research before setting the limit, which seems wise to me. 

I have no idea how I could do anything like that in my set up, which is such a shared space, but I believe your method could be very useful to hosts who rent out entire units where the energy usage could be measured separately. 

I've never heard about those heat allocators, and I will look into it. The problem for me is that there are many shared spaces and some of them, e.g. the kitchen (where the washing machine is also located) can be the areas that have the highest energy usage. There is no way of telling what the guests use. 

Obviously, as a live in host, I can normally tell which guests are wasteful and which are not, but it's more that you cannot prove it in my situation.

But. like I said, your method sounds very effective for other situations. I hope you don't mind me tagging you all the time in these discussions, but a lot of hosts are asking questions about it and it sounds like you have a potential solution!

[Debra300]

@Huma0,

I don't mind the tags.  Energy waste is terrible, and from my experience it's constantly perpetuated by hotels everywhere.  I've traveled to more than 30 countries and territories in North, Central and South America, the Caribbean and Asia Pacific, and I can recall only one hotel that didn't have the AC blasting when we checked in (Barbados, and they gave us a card key that had to be pushed into a slot to power on the AC - similar to my keyed switch).  Also, all of the cleaning staff would turn/leave it on after sprucing up the room while we were out.  

We live in the same house as our guest suites, and there is only one power meter for the entire dwelling.  So, we're still on the hook for electricity in common areas, and the exterior and interior hardwired lighting.  We are monitoring only the electrical outlets.  The meters are helpful to determine the portion of the nightly rate which will go towards the payment of the energy bill, and are great visual tools to dissuade guests against excessive usage.  I believe that home-share hosts can utilize heat cost allocators on radiators to help them set and monitor an energy and heating allocation in their guests' personal rental spaces.   

I would monitor and calculate heat usage in a similar manner that we did for electricity.  During a cold weather day after installing the HCA on the radiator, turn on the heater to 24-25C/75-77F for an entire day, and monitor the usage (this step may have to be repeated if the weather gets colder).  Then set the allocation based upon the data gathered, and the expected amount of time that the guests will occupy the space.  My conservation tips to guests would  recommend that when they depart to turn down the heat temperature to 20C/68F and close the curtains, and keep doors to closets/wardrobes and en-suites closed when they are not being used.

[Huma0]

@Debra300 

Yes, I have experienced the same thing in hotels. While they now sometimes encourage guests to help conserve water by reusing towels instead of expecting them to be changed everyday, and even a recent hotel I stayed in said they would only clean the room IF you left the sign on the door asking them to do so, the AC is always blasting. I personally do not like it and will turn it off unless it's really unbearably hot, but housekeeping just turn it back on again.

Thanks for the tips. I will look into that. I do encourage guests to close the curtains once it gets dark (I do this myself in the living room anyway where one wall is entirely glass French doors), but never thought to suggest they close wardrobe doors. It makes sense!

[Maria188]

I have just contacted Airbnb to ask if we can add an energy supplement without Airbnb adding their 20% commission ( split between host and guest fees). The answer is, you can't. Airbnb stand to make a fortune if we put up our room rates or add additional charges  to allow for the extra energy costs. my business will not survive unless I charge more, but I think it is immoral for Airbnb to profit from this. Has anyone got any good ideas of how to get around this? thank you. 

[Kathryn599]

Yes I agree with this. If Airbnb add their price it will make the nightly costs too high, this is the problem. I think what you are saying is a great idea.

[Arlene2]

I also think this is a very sensible idea.  Airbnb have to understand the pressure hosts are under.  My church conversion has huge windows and extremely high ceiling.  I am thinking of changing the lighting to instal fans but then I’d have to ensure that guests ran them. 

Another  thought was a a hu e system I can run through my phone as many guests simply put the heating on full blast 24/7 to the extent I can barely breath when I go to clean. 

I would hate to have to put it back on a normal rental system but am genuinely worried with these massive hikes in price.