Hi -
We have a couple of properties in Spain, which we rent out when we're not there. We've recently installed aircon, and are wondering how best to charge for it. What does everyone else do?

Do you:

Charge a lump sum extra if renters wish to use aircon?
Up the cost of the rental so that includes aircon regardless?
Meter the air-conditioning units separately and charge an on-cost?
Connect the units through a coin-operated or card meter?

Thanks in advance,

Quiterio

What a bizarre question.
If you rent a place with aircon, then you rent a place with aircon! You don't expect to be charged extra for it...that's like saying the villa has a swimming pool...but you can't use it unless you pay extra for the cleaning and the chemicals. Or the apartment has satellite TV but you can't watch it unless you pay per view.

I would guess that you pay more for a villa with AC.

Either that, or in a competative market, a villa with AC is more likely to be rented out.

Like Hillbilly says, I'd be pretty miffed if I was paying for a villa and then I had to pay extra for the AC, extra for the pool, extra for the TV etc etc.

I do remember renting a villa near Disney in Florida years ago and if you wanted the pool heater on it was extra. That seemed odd since the pool was like a warm bath anyway but if there are cooler seasons in Florida it may have been required. It was the air to water heat exchanger type.

I am assuming you are talking about holiday rentals, if so you should be including the aircon usage in your rental, the only other way is to have a separate coin meter, if such things exist, for the aircon, then it is up to the renter, but all the holiday rentals we have booked relatives in have had the aircon available at no extra charge, so I assume the renatal for the hot months includes a premium for this.

In the current market you need to do all you can to encourage people to rent your property, and that includes aircon, for if people cant have aircon at your place then they will choose another property.

When we rented ours we just took the average rate for a local property with a pool. Properties with a pool charged extra of course, whereas aircon was an incentive to rent rather than something you could charge extra for.

Well not quite. These things don't have running costs. What about a mini-bar: would you expect to find an endless supply of free drink? Have you ever rented a car with unlimited free petrol?

Originally posted by Mitzyboy:

In the current market you need to do all you can to encourage people to rent your property, and that includes aircon

We tend to be full throughout the season, because we keep our prices competitive. However, if we included the use of aircon, and a guest kept it running 24/7 we would have to increase our prices to avoid a huge loss.

Currently we ask guests if they want to use aircon: most decline (not everyone likes sleeping in a fridge!). The dilemma is, how to you recover the costs realistically for those who wish to use it, without penalising those who don't.

Anyway, thanks for all your input, this sort of feedback is extremely useful,

Quiterio

Not quite pools have relatively high cost for the electricity to run the pump just like aircon + the costs of chemicals. The hotter it is the more you should run the pump and a little more chemicals are used.

Bearing in mind that the price of rentals for property in Spain have dropped by 30% this year, I would be inclined to include the cost of aircon just to get the business.

And if as you say most guests decline, then you won't often be out of pocket.

Exactly!

Have you tried to calculate how much it costs to run the A/c per hour? That way you could even estimate an average supplement to add on to your usual prices - I'm sure you'd find it'd be no more than a couple of euros per night.

How do you actually control someone using the aircon though?

That's why I mean an average - you could estimate the whole 24 hour use and freezing cold temperatures if you prefer, but realistically that's not how most people use it. As the Op says, most guests say they to prefer not to use it anyway so if some use it a lot it might balance out.

yes, I agree as well it's a daft idea to ask guests to pay extra for A/C, I'm really just trying to persuade the OP that he's worring about what might not be a great deal of money anyway.


Or is your Q to the OP, not me? I do see that problem.

Just in General rachelk as I agree with you.

Its easier for people to control pool heaters ... I've also come across that in Florida, and iirc it was an extra $60 - $80 a week