Own a Luxury Rental? Here’s How to Protect Rental Profit Despite Increased Energy Costs.
With changing economic circumstances such as increasing fuel prices, landlords who take mitigating action are still able to protect their profit margin, without increasing the rent. A few simple measures can help protect your business.
Don’t Let Cold Air Freeze your Profit
Air conditioning costs can mount up. It’s important to keep your AC units regularly serviced so they are working at maximum efficiency. Smart landlords also know that keeping the device set to a slightly warmer “cool” setting can help stabilise the cost.
Move to Green Energy
Green energy pays back in three ways; it is kinder to the environment, saves the owner money and sustainability can be a decision-making factor for clients at the point of bookings, making the property more attractive.
Wind power has grown in popularity with our owners, some of whom already made the move this year. (Look-out for the sustainability symbol next to listings.)
Embrace the Sun
Consider installing solar panels, which, despite the initial outlay, are a solid, longer-term investment. This makes even more sense in Marbella which enjoys over 320 days of sunshine per year.
Conduct an Energy Audit
You can work with your energy supplier to review what you are spending and when. In Spain, energy has different rates depending on the time of day. Work with your provider to find a tariff that best suits your renters’ patterns.
Hire an Electrician
Review and monitor your appliances, lighting and wiring with an electrician. For instance, installing dimmer switches on lights can help reduce costs. Regularly service boilers and large appliances to ensure they are not draining energy.
Consider Passing on the Bills to your Tenant
Often the landlord absorbs the bills, especially in short-term rentals. But in medium and longer-term rentals it is common to pass on the utility costs, even in return for a rent reduction. This ensures there are no surprises for the owner which can reduce profitability.
Train your guests, nicely
And finally, encourage guests to be part of the solution. A polite card which inspires guests to play their part in conserving energy can help too. Just make sure you don’t sound like you’re laying down the law, this is their holiday after all.
Maximise Rental Profit in 2022
We are here for owners as well as guests, so contact a member of the team at any time if you are thinking about renting out your luxury property in Marbella, or need some advice on how to maximise the rental income. See our owners page for more information.
