BiggerPockets

In my limited experience as a landlord, this is the first time I've come across this situation, so I was hoping to get some feedback/advice from other landlords...

One of my tenants just called my property manager to complain that her heating bill for last month was over $400. She said that she believes this is unreasonably high and asked us to do something to ensure future bills are lower.

Now, as for whether the bill is higher than what should be expected, I really don't know. I only purchased this house a few months ago, so I don't have previous years data to go on.

I will say that this past month has been the coldest on record in Atlanta, with average temperatures probably around 35-40 degrees. Additionally, the tenant claims to have kept the thermostat at 73 degrees all day, every day.

As some background info, the house is a two-story traditional, 3 beds/2 baths, about 1600 square feet, was built about 6 years ago (2004), has original windows and has new exterior doors. The furnace underwent cleaning and maintenance a few months ago, and is also 6 years old.

Anyway, all the doors and windows are as well-sealed as we can get them, and without taking extreme measures (replacing windows with better insulated windows, I'm not sure there is much we can do.

Let me also point out that this tenant tends to be relatively high-maintenance...though I'm trying to judge this situation on its own merits.

Any thoughts/advice/opinions on how to deal with the situation or the tenant is appreciated...

Thanks!

Two years ago our electricity rates spiked in Texas. This was during the $4.00 gallon gasoline as well. Several of my tenants were complaining about their utility bills. Even my own electric bill was killing me.

I went ahead and blew more insulation in the attic of several of the rentals that were easy to get to. I also blew my own attic at the same time. It made a huge difference and is now a selling point when I have to fill a vacancy.

I used the non fiberglass stuff from Lowes. It was cheap and I think it may qualify for some federal energy saving program. I failed to follow proper procedures and didn't qualify. :(

Thanks for the tips, guys...

Greg - Great suggestion on the blown insulation...

Marc - Great suggestion on trying to get the past utility bills from the power company...

Oh, and Greg, I'm still mostly flipping, but occasionally find a property that's perfectly suited to be a rental, either short-term or long-term...

it's already been suggested to get the past energy usage so i won't suggest that, however, i would suggest asking the electric company if they do free energy tests.

progess energy will come out to the house, test window seals, check out energy usage on appliances, check insulation, etc and see what can be improved to save on electricity. personally, i couldn't imagine keeping it on 73 all the time. that's warm to me. the $400 bill for a 1600 sqft house during the coldest winter on record is not a surprise.

There was no mention as to whether there were kids involved. In a MHP in CO a tenant there always runs about $100 higher than the other units. The kids turn the heat up and then hang out the window talking with friends or leave the doors wide open.

In my area, the utility companies have a "budget plan". It averages the usages for the year and the tenant agrees to pay the average each month. Although it won't solve the bigger issue of why the house is not energy efficient, it will prevent the sticker shock of a $400 January bill.

Don't get me wrong I probably do way... more then I need to help out my tenants but. If the tenant is already high maintenance why not just tell her if she thinks it is high SHE should call the gas or utility company. Let her do the leg work. If they need you approval to release paperwork because you are the owner my guess is they can call you and get that. Otherwise it sounds like she is training you to do what she wants. Also yes 73 degrees very warm. Even owners up here in the northeast probably do not keep there house that warm. Housing code in at least one town I have rentals is (for leases that include heat) "thermostat must be set to a minimum of 65 degrees". I have some units I supply heat and I set the thermostat to 68 degrees. Good luck.

I had the reverse problem this past summer, with the AC bill being too high. After having the AC people come out a couple times and not be able to find anything wrong, it was finally discovered that insulation was missing over parts of the house. I just decided to pay for an extra layer of insualtion to be blown in and the tenants' issues with the bill stopped.

400 sounds kinda high i have a 2500 square house that was built back in 1990 and all original windows and doors and their are a lot leaks that i haven't fixed yet through out the house i have the temp set on 72 and my heat bill runs 280 a month .
Nick