Utilities Guide for Holiday Let Businesses

Running a holiday home has become more expensive in recent years, there is no doubt about that. But in an open marketplace, few owners can continue to pass those costs on to their customers without risking losing them, so how can you keep costs under control? 

One of the biggest drivers of those costs going up has been rising utility bills, and there is action that you can take in order to reduce them. Therefore, understanding your utilities–and especially billing–has never been more important. 

Understanding Your Utility Bills

Understanding how to read your utility bills is key to understanding how to cut those costs, and we have a full guide on how to do so. Your utility bills are a treasure trove of information. They should include the reference numbers which identify you and your account, details of the tariff you’re on, the amount you’ve been using and how much you’ve been charged for it, a breakdown of those charges, and the end date of your contract. Many of these pieces of information can be used by you to drive down those costs in the future, though there are also actions that you can take right now to reduce them. 

How to Reduce Electricity Charges for Your Holiday Let

The cost of electricity has been making headlines for a couple of years now, and although prices are now starting to settle back down, you can take action to reduce what you’re paying for your holiday let.

Managing energy consumption in holiday lets can significantly reduce operating costs and improve sustainability while improving your bottom line. And there is plenty that you can do to maximise this improvement.

Ensure proper insulation in walls, roofs and floors to retain heat in winter and keep cool in summer. Double-glazed windows and draught excluders can also make a big difference. Install motion sensors in common areas to ensure lights are only on when needed and smart power strips to turn off electronics that are not in use to prevent phantom energy drain.

If you want to understand how much energy each appliance uses, use energy monitors to track real-time usage and identify areas for improvement. Also, remember that your guests are likely to have environmental concerns of their own, so provide information to them on how to use energy efficiently during their stay, such as turning off lights and adjusting thermostats when leaving the property. Energy-efficient appliances can also make a huge difference, especially those that use much energy, such as dishwashers and tumble dryers.

Choosing the Right Utility Providers for Your Holiday Let

Holiday lets are a niche property area, and choosing the right utility provider is very important. There are various factors that you should take into account. Price is often considered the most important, but make sure that you understand your bills to know that you’re comparing like with like. Pay attention to both your tariff and your standing charge. 

But while price is important, there may be other factors that you need to take into account. The flexibility of the provider is important. What are the early termination charges if you wish to leave the contract? Can you switch tariffs before the end of your contract? What’s their customer service like? Are they flexible with payments? It’s easy to get a surface reading of a utility provider wrong, so don’t be afraid to go deep when researching!

Renewable Energy Options for Holiday Lets

Renewable energy generates energy directly from natural sources such as the wind, the sun or water, and it’s been a huge growth area in recent years. You can use renewable energy to power your holiday home in many ways. 

Solar panels can look like a big investment to make, but they offer not only the likelihood of considerably lower bills but if you produce more energy than the property needs, the government’s Smart Export Guarantee ensures that you can sell it back to the National Grid. Domestic wind turbines can range in size from 400W to 100kW – which one will meet your requirements depends on the size of the property, the amount of electricity you want it to generate and how energy efficient your home is.

Water might even be your answer. Hydroelectric systems utilise natural running water to generate electricity. If your holiday let property is close to a lake or river, then a small-scale generator could be an option for you. These natural water flows run 24/7, providing constant generation via a turbine, pump, or waterwheel. Of course, this is a niche form of renewable energy for people looking to power their homes because you need to be close enough to natural running water.

Seasonal Utility Management Tips

Managing utilities efficiently during off-peak and peak seasons involves adjusting your energy, water, and waste management strategies to align with varying demand levels. By adapting your utility management strategies to the different demands of peak and off-peak seasons, you can optimise efficiency, reduce costs, and ensure a sustainable operation throughout the year.

The off-peak season is a perfect time for property maintenance while minimising disruption to your income stream. You could even shut down unused areas or facilities to save on heating, cooling, and lighting. These periods may also be useful for activities such as conducting energy audits to identify inefficiencies and areas for improvement regarding your energy use. 

Financial management is also important. Plan and budget for utility costs by anticipating the variations in usage between peak and off-peak seasons. You should also consider seeking to negotiate flexible contracts with utility providers that account for seasonal variations in energy use. 

How Do Utility Costs Impact the Profitability of Holiday Lets?

Utility costs significantly impact holiday let profitability by directly affecting operational expenses. High utility bills can erode profit margins, while efficient utility management—such as using energy-efficient appliances and optimising consumption—can lead to substantial savings. Lower utility costs enhance profitability, allowing for competitive pricing and higher guest satisfaction.

The recent tumult in the energy price market has made news headlines around the world, but there are things that you can do to reduce those costs. One of the most effective is to look at your current usage and see if there are better offers elsewhere. SwitchPal can help with this. 

We have the experience to be able to help guide you through a market that can look like a maze to outsiders and get you the best business energy bill for your specific needs. By driving down these costs, you won’t just be helping yourself; with prices still rising all over the place, your guests may end up thanking you if you can buck that trend because you managed to reduce your costs without having to pass them on!