Electricity costs

[LeanneA]

Are coin meters considered unprofessional/out of date these days?

I am thinking back to when we used to go self-catering when I was young, and the meter used to eat 10p's. From my previous post, you may have read we are looking to sell our existing residential let flat and buy something for holiday use instead. We looked at several units in a converted barn complex last year (unforunately unable to sell our own so not an option). Some of them still had coin meters installed, but I see most adverts these days seem to suggest all electricity is inclusive.

As we will be completely new to whatever we eventualy buy to let, how do you manage your charges to cover the electricity used? Does anyone still use a coin-meter? If not, what are the options please?

Thanks

[Don Ciccio]

It does sound a bit frugal....

But you could ask your supplier to fit a Paypoint card meter? That way you can place a certain amount of 'paid' electricity on the the card and then when it runs out it's up to your guests to recharge it? Or you could provide a charged card if they give you the money.

What we do (or are getting round to doing, as we have only had 1 bad experience of 'guest electricity abuse' in 19 years):
If you take a security deposit, put something in your smallprint about a cerain amount of kilowatt Hours (see other threads for advice on this) being included in the price and that anything over this amount will be paid for from the security deposit. Then all you have to do is check your meter reading before and after lets and only refund the money if they have'nt used over what you have allowed for. No coin slots, no fuss.

If you are not going to live on site, there are some expensive meter systems and contract accounts that allow you to see what the reading is from a remote location, but you'd need an on-site internet connected meter for that. In Italy, most new electricity meters have a small 'mobile phone' in them that transmits the data back to base for visit-less readings. Other central heating systems also allow remote control access via the net (cost £££s), but allow you to turn off heating if guests leave it on whe they leave. This is something you may wish to investigate.

If you are looking at converting a barn, think about PV solar panels, geothermal pump heating and/or wind turbines - even one aspect like that could save you money as you can sell spare power back to the National Grid overnight - and green energy is another USP (unique selling point) for a barn/farm set-up. AND - you get to set the electricity rates your guests pay in your prices!

Does that help?

Ciccio

[LeanneA]

Thanks for the prompt and helpful reply. I hadn't thought of card meters - probably something we would investigate when the time comes. Seems a good way ot meeting clients half way - ie not so tight that they have to pay everything, but stops them taking the mickey!

We are looking to buy something already up and running. The barns we looked at last year were being sold locally - family have been running as a full complex and were selling off individually. As they were already running with a holiday history they seemed a good option for us, but obviously no sell on our own meant no deal.

Thanks again!

[Don Ciccio]

Glad I could help. Good luck in the hunt for a new place

[ccazes]

I would not consider setting up a card metre or coin metre, I really think it cheapens the product and as a client I would not want to go looking to buy a top up for the card even if it were available onsite.
If you absolutely want the renter to pay for what he uses no more no less, then take a reading at the beginning and end of the booking and charge accordingly. If you think that's a hassle then think of the hassle it is to charge a card or have change on hand for someone who is supposed to be on holiday.
I can't remember if this applies in UK or in France but isn't it the case that you pay more for your electricity when using the prepaid card system?

[jane reed]

we took the meters out of our cottages when we purchased them, two reasons health and safety what if some one runs out of electricity in the night and fall over (i guess we would be liable) also the fridges get very dirty when no electric.
also thing about timers, Central heating, cookers, dvd player

i believe it is not what people expect now. if you choose a great location, idea property you should get enought bookings that pay the electricity bill (look for double glazing, loft insullation)

[greenbarn]

It depends where you see your market. Meters for electricity are the bottom, a bit further up is a meter reading and settlement at the end of the stay, if you're aiming at the higher end guests will expect the pricing to be all inclusive. It is a problem when you're pitching your rates against competing properties where they charge separately for power, as you need to make sure people are fully aware that they won't be paying extras with your property. BTW, I believe there are regulations stating that you can't charge more for electricity than you actually pay for it.

Very interesting points from Jane Reed, especially wrt the safety side. Depending on the nature of the property, you may well need to install emergency lighting, and interlinked smoke/heat detectors and alarm system, which could make for some head scratching if associated with metered electricity - maybe the circuits would have to be on a separate permanent supply.

The unfortunate reality is that if you are open all year, the months when you have the most expenses in terms of heating and lighting are also the low rental rate periods, with the exception of Christmas and New Year. However, it shouldn't be too difficult to arrive at a reasonable estimate of those costs and make sure they're covered by a realistic rental rate. Keep in mind that even when the property is empty you'll want to keep a certain level of heating going to protect the fabric of the building and guard against damp, so the cost of letting is incremental to that baseline. Insulation is definitely your friend!

Edited to add another thought of a more general nature - when deciding on facilities, fixtures and fittings a useful test is what you'd be happy with yourself, plus being aware that guests' expectations will increase in the future; as an example, if you're kitting out a bathroom the extra cost of putting in a whirlpool bath and a decent shower isn't huge when weighed against chucking out a perfectly good bath a few years down the line. It depends where you're starting from, but if you have to renovate it's worth spending more on the things that will be expensive to upgrade at a later date. Budgets? Who mentioned budgets?

[catherinedonegal]

i was interested to see this thread as i am just in the process of putting in a meter here. i don't really think it makes my house the lower end of the scale ~ such a thought had never really occured to me. i don't think it would bother me if i arrived at a house and found a meter ~ providing of course that it was set at the going rate of electricity for that country and not some hiked up price.

i am putting it in because i am not able to charge the rent that i might get for our house elsewhere (say a warmer climate). i have kept the rent the same this year as last, other than a slight increase for june and september at the suggestions of lmh members.

the thing here is that people are lowering their rates wholesale at the moment and i really do not want to obviously. however, if i can save any money (ie by metering the electricity) then i must do that. plus we have a number of electric showers together with the downstairs shower which is heated by immersion heater, all of which is expensive if you have 10 people showering once or twice a day.

our electrician suggested either card meters or coin meters and after consideration i am going for the coin meter because i would definately have to be there on the day of departure if it were a card meter and sometimes, if there isn't a new arrival on that day, i might not go to the house (i meet & greet on arrival of couse).

with regard to the electricity runing out, i am going to leave a little jar with 'emergency coins' to use if the shop/pubs are closed when the money runs out. said coins to be replaced by guest for next guests.

regarding the danger of the electricity running out during the night, our electrician cleverly suggested not running the lights through the meter so there is never a danger of anyone being left in the dark in a strange house. the lamps (which are plugged in) will go through the meter but the ceiling lights will not.

[christinedavid]

Do those of you using/intending to use coin meters make sure your guests are aware in advance what sort of coins are required? I don't usually have change for the car park let alone an electric meter. I have to say, having to pay extra for electricity or air con always puts me off and a coin operated meter would be a definite no no.

[Don Ciccio]

Just a thought here, and it may be way off mark, but what if you fitted a meter and built in a general nostalgic style into just one of the units (and not the others). Could you promote this as a USP to people curious to see what life would have been like renting a room in the 50s/on a farm in days gone by? Even if you dont go for meters, there are probably other items of that era that would work well in the setting (such as old cast-iron irons, mangles, ploughs, barrels, 50s look Smeg Fridges, wood burning stoves.)

I know it may be a bit of an odd USP, but done and marketed in the right way might it not be a selling point? You may wish to advertise the one unit to a niche market who had their first holiday when such things were commmon and are looking for a nostalgia-fest break to relive old times/second honeymoon etc. The other units would be more modern and typical of contemporary lets.

We are working to refit our second Villa in Trapani a lot more rural to match the land upon which it is built. We have spent many many months searching out and gathering old farming equipment to display on the walls, 80 year old basin sinks etc. While the electricity meter is a modern mobile-phone equipped one, we have connected several 90 year old oil-lanterns (professionally re-wired) to complement the modern outdoor lighting and make it look a lot more rustic and basic. It's getting there and wont be ready till later in the year, but we are doing this because we have established that there is a market for the retro-style agri/farm house in Sicily. I would imagine that there is a similar market in the UK - albeit not so popular.


Oh, and I wasnt saying that you should overcharge the guests for electricity, rather that you could set your rates to ensure your cost for the outlay was covered in the long run.

Ciccio