Tenants unhappy about electric bill need advice please

Tenants unhappy about electric bill need advice please

St.Louis, MO · Member since 2013 · 26 posts · 10 votes

I own a 2 family unit in st louis, this is upper level and lower level.  I used to occupy the upper level while the lower level was being gut rehabbed.  While living upstairs i had high electric bills winter only (all elec apts) like 300$ avg in winter time when running heat at about 65ish.

I have a feeling the furnace size is pushing it, not incredibly small and not oversized for the unit about 1100 square feet. 

I think when the furnace is on bills skyrocket, so im thinking the size (possibly) though it does not seem small, and the duct layout have a lot to do with it as it is a 1925 all brick home, with new windows.  

Recently (last week)  i added door sweeps, weather strips to all exterior doors and door sweeps to all interior doors which needed them, bought them plastic to install over (new) windows. and have scheduled to get the furnace cleaned professionally

The market rate of the apartment is 875 and i  am renting it to them for 800 should i be concerned that they are upset about high electric bills,  given i have done more than a slum lord to ensure they are happy and they are 75 dollars under market rat?  Only thing they par is their own electric and rent, i pay trash sewer water

I understand it sucks for a higher than average utility bill and i had to deal with it when i lived up there, i had the same high bills.  However i am doing more than avg for a LL and they got a good deal on the apt.

This is my first time renting only 3 months in i want to ensure that i am doing the best i can but also want to ensure that i am not over stressed for no reason.

Please let me know your thought, i can elaborate and give more details if needed.

Sorry for the unorganized post as this was stream of consciousness writing.

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Gordon CuffePro Member
Investor · Roseville, CA · Member since 2009 · 1k+ posts · 584 votes
10y

If your below market then tell them to look for another place. Once they realize they are paying below market rents, they will shut up.

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  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    10y

    @Andrew Graves said what I was thinking - insulation.

    If this is an older house, @Mathuw Chandler check out the insulation. My house had no insulation when I bought it, except in the one room that was an illegal addition with poor quality windows facing east. Hotter than the surface of the sun in the summer.

    Insulation is one of the least expensive ways to help this situation out - you can even rent a cellulose blower at Lowe's or Home Depot for free if you buy 20 bats of insulation. 

  • Member since 2023 · 1 post · 0 votes
    2y

    what is fair proposal for tenants increase in rent in nyc after landlord changed heat system to a split unit where heat is originally included?

  • Member since 2022 · 1k+ posts · 1k+ votes
    2y

     When I moved into my first house the electric bill was $400. I flipped out. What did I do? I turned down the heat. 

  • Member since 2020 · 38 posts · 22 votes
    2y

    You’ve done your part. Peek winter rates on an all electric 1,100sq/ft unit in the Midwest probably isn’t going to get much cheaper. You can remind them that they are also not paying the $50/month connection charge for gas for the 6 months of spring and summer they aren’t using their heat by having a fully electric unit.

  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Mathuw Chandler Matthew I first looked at an 8 unit apartment building last January when it was -15 degrees where I live. 5 of the tenants had the heat on 78 degrees in their units and 4 of them had at least two of their windows open. To top it off they were averaging $575/month in rent including heat which was only half the going rate including heat which should have been around $1200/month.

    I ended up buying the building mid-April and immediately raised existing tenants rents to $800 and as units have turned over the new tenants are paying $900. We are midway through switching the heating system from an oil furnace where I would be paying for the heat to a new propane system where the tenants will be paying for their own heat. I figure if they still want the heat at 78 they can pay for it or else learn to bundle up!

    This is part of the reason I have left the rents so low. I want to see how much the heat ends up costing before I raise the rent amount again.

    I think if you are already under market rent then at $75/month that equals about $900/year. That is 3 months of the $300 heating bill. The bill is probably only that much the coldest three months and then is less before and after.

    My electric company will come out and do an energy audit for free which you might check and see if yours offers a program like this before you get the heating company out to do one for a fee.

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