Rental Property Investor · Gulf Shores, AL · Member since 2015 · 53 posts · 10 votes
So I have this SFH in AZ that we've been using as a vacation rental...Have had it a couple of years and have been happy with the amount of time we've had it rented. We've even had summer renters, believe it or not.
One issue I've been struggling with is utility costs. In the winter its the gas bill for renters using the heated pool and in the summer its been the electric bill from the AC (just got one yesterday for July - $472!!!).
The winter renter has been easier to manage so far as its not been a VRBO and we've written into the rental agreement that they'll pay anything above $100. But with the VRBO renters, it doesn't appear that I have that sort of flexibility to write in the utility contingency.
I'm considering putting in a NEST thermostat in the house and a remote pool pump monitor so I can keep an eye on where renters have set the temps?
Look, I want my renters to enjoy a warm pool in the winter months and stay cool in the summer, but these utility bills are eating away at our income....
Anyone have any ideas about managing this issue more effectively?
Rental Property Investor · Scottsdale, AZ · Member since 2016 · 296 posts · 243 votes
8y
@Peter Padalino - couple suggestions, as I've been in your shoes.
1) Go crazy on energy efficient items - all LED bulbs, NEST or EcoBee thermostat, etc, etc.
2) Get someone to quote solar power for the roof if you have APS - I went solar and LOVE IT for rentals. Let those tenants do what they want, they can't outsmart sunshine in AZ. Full disclosure, I sell solar as well for a day job. Just being honest, but the numbers do not lie. I just did a system for an AirBnb guy in north phoenix.
3) Check out a solar water heater for the pool - the old ones kinda suck, but there are newer designs that will pump out a lot of heat even in winter, and will shave your gas bill down a lot.
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
8y
Get the smart/remote devices and put a lock on them for a certain time/temperature. I'd set the thermostat at 78 overnight and 82 during the day. This should keep the house cool all day long and the use of ceiling and floor fans can help mitigate the daytime heat. I'd be sure to let all renters know the policy regarding the utilities and how they are managed so there are no surprises when they occupy your home.
Rental Property Investor · Scottsdale, AZ · Member since 2016 · 296 posts · 243 votes
8y
@Peter Padalino - couple suggestions, as I've been in your shoes.
1) Go crazy on energy efficient items - all LED bulbs, NEST or EcoBee thermostat, etc, etc.
2) Get someone to quote solar power for the roof if you have APS - I went solar and LOVE IT for rentals. Let those tenants do what they want, they can't outsmart sunshine in AZ. Full disclosure, I sell solar as well for a day job. Just being honest, but the numbers do not lie. I just did a system for an AirBnb guy in north phoenix.
3) Check out a solar water heater for the pool - the old ones kinda suck, but there are newer designs that will pump out a lot of heat even in winter, and will shave your gas bill down a lot.
Rental Property Investor · Gulf Shores, AL · Member since 2015 · 53 posts · 10 votes
8y
Thanks for the input guys...Michael, that's part of my dilemna...I want my renters to enjoy the home and have the flexibility to adjust heat/AC to their liking - AND want to come back to my property. But like I said, to get an electric bill close to $500 for July when we're already at the lower summer seasonal rental rates makes it really difficult to make any money at all....I guess it's better than being empty. I'm just looking for a happy medium...
Rental Property Investor · Scottsdale, AZ · Member since 2016 · 296 posts · 243 votes
8y
@Peter Padalino - so I have an 8-unit building in scottsdale that has 1 power meter, and full of hairdressers, blasting AC, using dryers, hot water, etc etc.
Was able to reduce electric about 60% through energy efficient upgrades, and then put rooftop solar on the place (going in now, permits for commercial are a pain in the @$$....
Will nuke out the power bill, just have a few bucks for connection fees.
A friend of mine has a 3br/2ba home near Giants stadium with full PV solar on it, and his bills in summer are under $10. He rents it out at a premium in summer with "all utilities included" and just keeps the cash.
Investor · Roswell, GA · Member since 2016 · 34 posts · 17 votes
8y
@Peter Padalino
Unfortunately it is part of the business for short term rentals in hot climates. There are a few things you can do to help.
1) Setup thermostat where renters can only set temp up and down to a certain temp. For example air only goes down to 68 and heat up to 74. You can tell them below 68 can lead to mold in high humidity areas.
2) access the thermostat in between rentals to adjust to a neutral temperature of a gap between guests.
3) Have maid close curtains if you know next guest is not coming for a while.
5) Apply tint on windows. They make tint that still allows for clear view and does. It darken things too much
6) Take a look at a system such as coastal green air devices. They are sensors that automatically turn off the air if a sliding glass door is left open
Investor · Valencia, CA · Member since 2017 · 171 posts · 130 votes
8y
@Peter Padalino the other advantage of adding solar is that it is building credit with the utility when the property is vacant. Power is being generated and sold to the utility but little is being consumed in an empty property.
Specialist · FL · Member since 2017 · 139 posts · 88 votes
8y
@Peter Padalino you can easily add a fee to use the pool heater for $10-$25 per day. I've done that for multiple homes and no guest complained. During the summer months, no pool heater is turned on. Yes, you should buy a lock on your pool heater so you can control when it turns on/off.