I have a boiler but it is expensive to run what should I do?

Question

Alecia Loveless · Answer

@Bobby Eastman We don’t set up and drain our boilers or furnaces. We simply turn them off and on. We also have them cleaned every year which costs between $150-200.

If you switch to electric heat you will have to pay for the new units and if the tenants are paying for heat your rent will have to be adjusted to compensate for the tenants extra expense.

My boilers use between 2000-4000 gallons of oil a year which is $6000-$12000 a year. Propane heat is less expensive right now.

I don’t think $3000 a year for heating a 4-plex is bad. It’s pretty cheap. Ideally you would have known this approximate cost prior to doing your underwriting when you purchased the property and factored it into your numbers.

I have found my tenants don’t conserve heat when it is included in the rent. I’ve found it’s better to have the tenants pay for the heat and charge less rent to offset the difference. It has saved me a lot of money and headaches. I’m making more cash flow not paying for heat.

Colleen F. · Answer

@Bobby Eastman Ok while draining is a recommendation they don't drain the whole system right? It is for sediment and they drain and flush the boiler but that sounds high. Do they clean the burner too? This should be something you do one time a year so not sure what a setup charge is, are they turning the boiler off. Do they do that in St Louis? I would talk to a couple of companies and ask what their annual maintenance and if there is a maintenance contract. You should also be clear if your current cost includes a maintenance contract with the company you have. Our oil one does. That means that there is no charge for certain repairs and they will respond off hours for us which is a nice to have but again not that high a charge.

Ricardo R. · Answer

Hey Bobby,

I’m also in the Midwest and have a couple of older boiler buildings, so here’s how I’d look at what you’re dealing with:

• Annual draining/setup cost – Like @Alecia Loveless and @Colleen F. mentioned, most of us don’t fully drain the system every year unless there’s a specific issue like sediment build-up. We do a standard cleaning and safety check once a year—$150–$300 is typical here in the Midwest. $1,200–$2,400/year for setup/draining sounds high unless it includes a full flush, burner cleaning, and some kind of service plan. If it’s all time and materials at $120/hr, you might be paying premium rates just because your PM uses one company. I’d get at least 1–2 other boiler specialists to quote annual maintenance so you know if you’re overpaying.
• Gas cost problem – $3K/year for gas on a 4-plex isn’t crazy, but I get it—when you can’t sub-meter, you eat that cost no matter how hot tenants run it. Like @Alecia Loveless said, tenants use way more heat when they’re not paying for it. Some landlords install LandlordStat or similar systems to cap the max temperature. It keeps costs from spiraling while still keeping units comfortable.
• Switching to electric (mini-splits or window units) – You can definitely go this route, but @Colleen F. was right: make sure your electric service can handle it and be prepared for some pushback if tenants see higher winter bills. Some owners offset it with slightly lower rent to keep tenants happy. Mini-splits are more efficient than baseboard or window units, and you’d likely make back the install costs in 2–3 years if gas prices stay high.
• Profitability issue – Sounds like the boiler costs are just one part of why the 4-plex isn’t cash flowing. Before spending big money on mini-splits, I’d first: Shop around boiler maintenance costs Install temp limiters so tenants can’t blast heat to 80° Run numbers on the mini-split payback period to see if it’s worth the upfront hit
• Shop around boiler maintenance costs
• Install temp limiters so tenants can’t blast heat to 80°
• Run numbers on the mini-split payback period to see if it’s worth the upfront hit

Annual draining/setup cost – Like @Alecia Loveless and @Colleen F. mentioned, most of us don’t fully drain the system every year unless there’s a specific issue like sediment build-up. We do a standard cleaning and safety check once a year—$150–$300 is typical here in the Midwest. $1,200–$2,400/year for setup/draining sounds high unless it includes a full flush, burner cleaning, and some kind of service plan. If it’s all time and materials at $120/hr, you might be paying premium rates just because your PM uses one company. I’d get at least 1–2 other boiler specialists to quote annual maintenance so you know if you’re overpaying.

Gas cost problem – $3K/year for gas on a 4-plex isn’t crazy, but I get it—when you can’t sub-meter, you eat that cost no matter how hot tenants run it. Like @Alecia Loveless said, tenants use way more heat when they’re not paying for it. Some landlords install LandlordStat or similar systems to cap the max temperature. It keeps costs from spiraling while still keeping units comfortable.

Switching to electric (mini-splits or window units) – You can definitely go this route, but @Colleen F. was right: make sure your electric service can handle it and be prepared for some pushback if tenants see higher winter bills. Some owners offset it with slightly lower rent to keep tenants happy. Mini-splits are more efficient than baseboard or window units, and you’d likely make back the install costs in 2–3 years if gas prices stay high.

Profitability issue – Sounds like the boiler costs are just one part of why the 4-plex isn’t cash flowing. Before spending big money on mini-splits, I’d first:

• Shop around boiler maintenance costs
• Install temp limiters so tenants can’t blast heat to 80°
• Run numbers on the mini-split payback period to see if it’s worth the upfront hit

Shop around boiler maintenance costs

Install temp limiters so tenants can’t blast heat to 80°

Run numbers on the mini-split payback period to see if it’s worth the upfront hit

If it were my building, I’d try to get the boiler costs down first with better maintenance pricing and temp controls. If it’s still killing your numbers after a season or two, then I’d look at switching to electric where tenants pay their own heat. I really hope this helps and adds to the good advice you are getting here, I sent you a DM on BP and hope you are able to assist.

Colleen F. · Answer

@Alecia Loveless We don't drain our boilers either but they are older. Not sure about the newer or gas versions if it is different. I see it recommended and was going to ask if anyone with boilers actually does this annually but you confirm we aren't the only ones who don't.

@Bobby Eastman the other way to save is we do use landlordstat with upper limits on the thermostat.

Colleen F. · Answer

@Bobby Eastman on the topic of switching you have two issues. Check your electric is sufficient to handle the new units and if those units would be on tenant electric you would need to compensate them until you were at lease renewal as they have a utility included and you would be changing to non-utility included which shifts the cost to the tenant. If you pay electric I would be inclined toward miniplits which may be more cost effective to run. Also that unit does not give estimated heating area, only cooling area so I am not sure what kind of heat you have there but it may be expensive electric heat which is expensive to run and could cost you tenants in the long run.

Benjamin Louie · Answer

Wow, $2,400 a year just to set up and drain the boiler? That feels really high for a 4-plex, especially since it’s under 10 years old and running fine. On top of that, paying $3,000+ in gas because it can’t be metered individually, that’s a ton of money.

Switching to high-efficiency window units like the LG you mentioned could actually save you quite a bit, and some people even go with ductless mini-splits, which give both heating and cooling efficiently. Another option is to shop around for local HVAC companies to see if you can get the boiler serviced for less, or even consider doing seasonal maintenance yourself if it’s safe.

Also, if you ever look into submetering gas, that could help a lot long-term. And for a PM in St. Louis, local forums and smaller boutique companies usually give better service than big national chains.

Honestly, at your current costs, running the numbers on electric alternatives could easily cut your yearly expenses in half.

Bobby Eastman · Answer

@Colleen F. thank you very much for the reply.

My understanding was that they drain the whole system each year. I can look into it a little more(thought I knew it better) but they probably do clean the burner. They will come out at the start of the cold and get the boiler ready then before they turn it off they will drain it. They charge $120/hour for strait time. I am told by my PM they are very good and that there are very few companies that do what they do in St. Louis. What is a good rate for hourly work for a company that specializes in boilers?

I don't have a contract with the company. Everything they do is strait time with equipment charges.

My electric is sufficient to support the switch and I think in 1-2 years the savings on gas alone would make up for the initial cost. In St. Louis tenants pay for gas while the landlord pays for the other utilities. However my 4plex cannot be individually metered for gas so I pay for it. I do charge a CAM which helps but I am looking for ways to make this rental profitable(hasn't happened yet).

Doing the mini-splits would raise my tenants electricity charges in the winter that is correct. I hope it wouldn't cost my any tenants but increased costs always could that is something I will have to keep my eye on.

Bobby Eastman · Answer

This was my first property and my next property will have much better DD. Thankfully my boiler does run on propane.

I do want to find a way to stop paying for heating. We are able to set the temperature but the boiler is a headache that never really stops. It may be good for awhile but I'm always waiting for a repair cost.

I have a boiler but it is expensive to run what should I do?

I have a boiler but it is expensive to run what should I do?

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