Updated 12 months ago on . Most recent reply
Electric Baseboard Heat and Unhappy Tenants...
Yes, I know it's almost July 4th and the topic is referencing heat...
I had a tenant give notice today(lease is almost over), due to high heating costs in the winter. The apartment is roughly 1100 square feet and ceiling height is above average. This past winter the heating bills for two out of three apartments were above 1k a month per unit. These units are all electric including the range, hot water, and main heat.
Im seeking ideas to combat the high heating cost, as I foresee this being an on going problem with future tenants. Below are a few ideas that came to mind.
Option 1: Change electric heat to gas heat by running gas to the property and adding an adequate space heater to each unit. Also, upgrade electric hot water heaters to gas.
~This option will be costly in the beginning but pay off in the end? There's a 5 year excavation moratorium on the road to the property. Therefore, gas can't be run to the building until 2026. Units in the area usually heat with gas or oil.
Option 2: Attempt to work with Mass Save to have the building insulated. Then experiment with another winter season utilizing the existing electric baseboard systems.
~Potentially the most cost effective course of action.
Option 3: Sell the property and most likely take a loss.
As a new investor, this property has provided me with a wealth of knowledge about what I should AVOID buying in the future. The building needs cap-ex work and isn't on the best lot. I bought the property for top dollar which leaves me little room for further investment in the building. (I MUST HAVE INSPECTED WITH ROSE COLORED GLASSES THAT DAY!) Im trying to paint the picture for those reading. Its a rock and a hard place situation. Inject more capital, watch the return diminish and hold for the rest of my life to get it back? OR SELL and take my new found knowledge over to a lucrative investment instead of a boat anchor...
Thank you for reading. HAPPY FOURTH OF JULY!!
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Install heat pumps in each unit