Higher energy costs

How do you fellow Airbnb hosts deal with the increased energy costs? My cleaning person also raised her rates 100%!
Have you raised your fees, considering doing it or swallowing the increases?

Appreciate your thoughts on this!

I tried to raise my rates but I had to bring them down a little because I wasn’t getting bookings. I’m still higher than I was before the pandemic and I made the Airbnb a 1 bedroom with a den instead of 2 bedrooms. (Love only getting singles and couples) and I raise my cleaning $15. (I do the cleaning myself).

I know other hosts keep their rates high the closer they get but I do the opposite. I keep my rates high a few months out and when I’m two - three weeks out I run a promo.

I’m afraid what my AC/electric bills will be but for now I’m in the season where I need less heat and no AC. I have solar heating for the water so not too bad.

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What? She doubled what she was charging? That sounds extreme unless she was working for peanuts before.

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I will have to raise them little too, at least offset some of the large increases… I like your approach, to do it part of the year, maybe in high season.
Curious is this is what hosts are thinking of doing overboard right now.

That’s not what I meant. I do have different off-season rates vs in-season but I do keep my rates higher further out for either season. I run the promotion when it’s closer to the date and I still don’t have bookings.

I should also note that I now block the day before and after a booking and added a 2 day minimum. All these changes, plus making it for singles or only a couple have reduced my stress, noise, and cleaning. Much easier to manage and clean.

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I’ve never heard of such a drastic increase. It sounds like she is trying to get “fired.”

Let’s see if this is true… :rofl:

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Yeah, or maybe she’s tired of it.
She’s added all kinds of charges, like an a last minute booking fee of additional $100.
Since I am not mentioning her name, she did sometimes seemingly rushed through the cleaning with the effect of having one renter photograph a piece of hair on the bathroom floor…so no big loss

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There seems to be an increase in cost and demand for cleaners, both for homes and for Airbnbs. I’ve seen people talking about it on NextDoor, several subreddits and other forums. Cleaners seem to be in demand and raising their prices all over. Personally, I’m glad to see people get paid better for their work.

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I’m always happy to see working people get better pay. But doubling prices overnight just suggests something else aside from the current labor market.

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Don’t mention feckin energy costs :rage:

Now on our third electricity company since last October, just trying to keep prices manageable!

To answer the original question, yes we have upped our rates, by a fair amount, and fortunately we’re still getting booked.

JF

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Sure, that is possible, but that is assuming that she wasn’t grossly underpaid in the first place.

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Yes, I hear you, John. Increased costs all over make it necessary to raise prices, but as you said manageble.

No change here. I have a traveling nurse for a couple months. She does like a space heater cranked up in her room, but she isn’t here very often. When I start getting more flips requiring running the dryer and ACs more I may consider it.

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We cover a fixed amount of energy for our condos (a little more in the summer) and the rest comes out of their security deposit, as we do meter readings at check-in and checkout. Due to our low rates and hot Phoenix summers many from colder climates like to keep the place like a meat locker. If they don’t prefer that policy they may opt for unlimited energy for an extra $6/nt. This works great for us to keep guests mindful but also even those who go over (some in the summer, few in the winter) save over our unlimited option, though we offer it if they want. We’ve had a few guests run up some outrageous bills (more though before we had the policy).

We also make use of Nest thermostats which will automatically revert to an economy setting when no one is home.

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Comparing to last year I made 40% more than last year for January and February and same as last year for March.
I don’t control thermostat settings …I just charge enough not to worry about any 100$ extra. I also don’t worry about paying whatever cleaner is asking. I just raise cleaning fees accordingly.

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I think this issue also depends on where you’re located since some utility charges differ, like electric.
I’m in the northeast with many months of heating bills. Also if you’re in a highly desirable location it might be easier to just up your fees to cover all including the many 100 % increases.

We must adjust our pricing accordingly to inflation no matter where we are.
I prefer doing that than controlling my guests comfort level.

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I always thought that in any business you’d have to put prices up if your overheads increase. :slight_smile:

Our accountant always gives us the figure we should be charging and it’s worked so far…

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Fellow hosts, thanks for input!
I am raising my rates, not a lot but enough to off set the higher costs running it.

Why in the world aren’t you raising the rates to completely cover your costs and some profit?

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