Short term rentals utilities included?

Question

I'm just starting out renting our home to short term (3 months) renters while we're out of state on work assignments. What is usually included in rent? I have a potential tenant who feels utilities should be included. We're in Kirkland (S. Juanita), WA (just east of Seattle). The rent is pretty low ($1,900/mo for an entire 2,000 sq ft home Would love some advice or "here's what I did" personal experience. Thanks a lot in advance.

Nathan Gesner · Answer

I just did a quick search of rentals in Kirland with 1,750 - 2,500 sq.ft. The lowest price is over $3,000 and the average is around $4,000. Those homes do not include utilities and are probably one-year rentals. A month-to-month rental is typically priced higher, which means you may be worth $4,000 - $6,000 per month.

I highly recommend you research your market and understand the value of what you are renting. If you charge below market rate, you will attract low-quality renters who are more likely to trash the property and make your life miserable.

Leon Lee · Answer

Utility bills can increase significantly if guests stay for months during hot summers or cold winters. To manage this, find the average electricity, water, and gas usage in your area. In the contract, state that if usage exceeds 120% of the average, the guest will be responsible for the extra cost. This strategy can help reduce utility expenses.

Mid-term and short-term rentals can have utility costs up to 10% of gross income, including electricity, water, gas, cable, lawn care, and pest control. Set pricing appropriately to ensure the business remains sustainable.

Andrew Steffens · Answer

"Short term rentals" are nightly and weekly rentals, primarily for tourists or people in town for business etc.  Accordingly it should come with everything needed for a comfortable short stay, which would definitely be utilities.  It seems like you are looking for at MTR which is monthly.  While most MTR's do include utilities, it is negotiable in my mind.  Was this not advertised or discussed prior to move in?

Sarah Kensinger · Answer

If you haven't asked your question in the mid-term rental forum, I would do so! Some great people there can help answer your question.

Garrett Brown · Answer

Hey @Samantha McCormick, welcome to the forums! Rates rise significantly when you are doing a MTR. Since you haven't signed the lease, I would increase the rent rate if needing utilities before going forward with that. If they don't like it, I would put it up for rent again, or you are going to lose money. Most MTRs can be anywhere from 1.5-3x the normal LTR rent. Check out Furnished Finder to see if there are any comparable MTRs and their rate in the area.

Samantha McCormick · Answer

Hello Andrew, Not being professional landlords we were didn't know what we didn't know and priced the rental without utilities. We found a great couple as potential tenants. We discounted the rental rate because they only wanted to rent part of the home. Utilities were never discussed. When I sent over the lease paperwork, we they want to negotiate on utilities. I was operating under LTR understanding, but you're right that we're looking at MTR. Any advice?

No lease has yet been signed. Thank you so much for your reply and any advice.

Short term rentals utilities included?

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