Jamesville, NY · Member since 2015 · 55 posts · 34 votes
I have a duplex (I live in half) with completely separate utilities and fuel oil furnaces. I'm tying to figure out the best system for my tenant to pay for his fuel usage. The way I see it I have two options:
1) Work with the oil provider myself and then bill the tenant. This seems like the best way to ensure the tank stays full, but it is also extra work on my part, and then it becomes my responsibility to check my tenant's oil level and call when needed.
2) Have the tenant deal directly with the oil provider and be billed by them. The tenant would be responsible for seeing when they needed it and paying the oil company, and I'm out of the equation. This is the simpler, easier method but what's to prevent the tenant from using their last month of oil, not having it filled, and then leaving it for me or the next tenant to deal with? I know I'm not likely to see any money come after a tenant has moved out.
How do you guys normally handle something like this?
I've had tenants leave without filling the tank when they received a full tank at move in. I was lucky, I billed them and they paid it.
In retrospect, I'd measure the tank at turnover, pay the departing tenant for their fuel that they bought (use that day's price, it's the only fair way and it's how it's done when you buy and sell and property) and then charge the arriving tenant.
Make sure all parties, the arriving and the departing tenants both, know the deal, (have a separate conversation) and then remind them when they give their notice. That way they won't be cutting it close when they leave and leaving you with an empty tank. I'd also send reminders in the fall telling them that if they haven't contracted with a fuel company, that they are responsible for their own fuel deliveries. Remind them that they paid for fuel when they arrived, and that they'll get paid when they leave. Keeps it current in their minds. Memories are short.
Just my suggestions. But I keep a great relationship with my tenants, and screen carefully, so seldom have issues.
If you have oil you can parallel their use e.g. you get a fill, they should be getting a fill.
But since you're getting gas, I'd get your other unit a new gas boiler/furnace. If they leave owing the gas company money, the gas company chases them. Your new Tenant moves in with a clean slate.
With an oil company, your Tenant may forget to have it filled to the full level they moved into. or worse the tank goes empty and the boiler needs to be primed (usually on the coldest, pipe freezingest days:-(
I have a duplex (I live in half) with completely separate utilities and fuel oil furnaces. I'm tying to figure out the best system for my tenant to pay for his fuel usage. The way I see it I have two options:
1) Work with the oil provider myself and then bill the tenant. This seems like the best way to ensure the tank stays full, but it is also extra work on my part, and then it becomes my responsibility to check my tenant's oil level and call when needed.
2) Have the tenant deal directly with the oil provider and be billed by them. The tenant would be responsible for seeing when they needed it and paying the oil company, and I'm out of the equation. This is the simpler, easier method but what's to prevent the tenant from using their last month of oil, not having it filled, and then leaving it for me or the next tenant to deal with? I know I'm not likely to see any money come after a tenant has moved out.
How do you guys normally handle something like this?
I'd go with option #1. You live there, so it's no big inconvenience to do this. Since you're not ready for the expense of converting to natural gas, it's the easiest, cheapest option.
When you move out, then you can deal with another option. But, the argument about getting it set up as if you aren't living there, just doesn't apply right now because - you do live there. And you don't want to spend the money for a system - yet - that will work best for a hands-free option. So, to me, it makes more sense, for now, to just go with Option 1.