Host, Christine Karpinski: Today's question comes from an owner who asks…

Q: "Is it OK to charge renters for utilities?"

A: You know that's actually an interesting question. I know having a vacation rental property can make your utility rates go up astronomically. I was just speaking to an owner yesterday who was complaining that the travelers leave their doors open and leave the air conditioning on. And their utility bill was over $600, whereas in the normal off season, it's usually around $85 100. That could really cut into your bottom line.

I think in Europe, a lot of times, when you rent a home, they actually do read the meter and you get charged a utility fee. Now you can certainly do something like that, however, that can be really confusing. It could become a 'he said, she said' thing with reading the meters. I think factoring in the extra costs into your rental rate is really the better way to go. However, there are some times when it's appropriate to charge a utility fee, and that would be when people are renting by the month.

Often you'll see where you've got monthly rates, plus a flat rate utility charge. Or what I actually do for my 'snowbirds' who go into my vacation homes in Florida, during the wintertime, I write a dollar amount. I say, "Included is $100 worth of utilities a month. If you go above that, then you will be charged the excess of $100 a month."

However, when you're renting on a weekly basis that's going to be much more difficult to assess which renter used that property, and used all that power. So I think if you're renting on a weekly basis, it's much easier just to incorporate that into your costs.

Now on the flip side, I think adding some tips and pointers to your directions, perhaps even a little note by your thermostat might be OK. I'm not big fan of notes all over the place. Turn off the lights. Put the thermostat down to this. Close the door. I'm not a big fan of that because we do want the people to feel at home.

However, a gentle reminder by the thermostat might be appropriate, and certainly, put that in your directions. When you send the directions to the vacationer prior to them coming to your home, please just make it really poignant on the directions about utility conservation, closing the doors, don't run the air conditioner or heat at the same time.

Now there is another circumstance where it poses a problem with people who have fireplaces. If you have a fireplace and you have renters in there during the summer, you don't want them running the fireplace and the air conditioner at the same time. Yes, they will do that.

In that circumstance, I actually shut off the gas to my fireplaces; I have gas fireplaces. Or if you have wood burning fireplaces, definitely write into your contract that it's a fine to run your fireplace during the summertime, and whatever else you might want to write on that. So being conscious of the utility usage is good. However, charging the renters, I'm not so sure if it's a great idea. 

I hope you enjoyed this episode of  "Ask Christine." If you have a question, we'd love to hear from you. Please leave a message at (512) 493 4340.

Don't forget to enjoy your vacation home yourself. Happy renting by owner!