Required to split furnace on multi-family?

Question

I bought a duplex in Colorado Springs last year with a single furnace knowing that it was old and would probably need to be replaced in the next few years.

I had a few companies give me quotes on separating the HVAC for the two units which would obviously require adding a lot of duct work in one of the units.

The cost of installing 2 units and duct work was around $13k.

That was a lot more than I expected and when asked to get a quote for just replacing the current furnace they said they can't do that with a Multifamily unit. Something about it not meeting code. However, that never came up when I had an inspection done on the property when I bought it.

Is that true? Can I really not just replace the single furnace in the duplex?

I would appreciate any suggestions on this.

Canneton Howard · Answer

Thanks @Alex Deacon and @Todd Dexheimer.

This is a SFH that was converted to a duplex years ago, so the utilities are not split (I pay for them) and located in the lower unit. Not a bad idea though with the electric baseboards, but again the utilities are not split. The controls are upstairs but funny enough its the bottom unit that gets hotter.

I had two quotes. I just found one of them and it was closer to $11,500 after some discounts. Still, I was only budgeting to replace 1 furnace, not 2 with additional duct work.

So I'm understanding that there is no issue with having only 1 furnace for the two units and no code that would prevent me from doing this.  Sad that so many contractors are that dishonest.

Alex Deacon · Answer

@Canneton Howard Thats BS. They can replace a furnace that heats two units. I would suggest looking into making one unit all electric heat. Preferably the second floor because heat rises. The first floor would be normal HVAC the second floor would be electric baseboard heat. We do this all the time in my market. I assume you have seperate electric meters? If so this is a viable option. if the service and box are large enough you could do the heating for the second unit for $3000 give or take.

Canneton Howard · Answer

Thanks @Todd Dexheimer and @Teri S.

I looked through that doc with the codes for my area and couldn't find anything about individual furnaces in a multi-family unit. I'll probably call them to confirm but so far it looks like I'm ok.

Todd Dexheimer · Answer

Electric baseboard is not at all hazardous, electric space heaters are.

Teri Feeney Styers · Answer

@Canneton Howard I found this on the 'contractor" portion of their website: http://www.pprbd.org/codes/2011_PPRBC.pdf

Electric baseboards are not the least bit hazardous. I have installed them in rooms lacking appropriate heat. Generally they have their own little thermostat for individual control. However, in our state, electric heat can be more expensive than natural gas if you are doing an entire house. @Todd Dexheimer . Even if you are billing it back to the tenants I'm sure they would appreciate bills that are as low as possible. That said, if you are dealing with Xcel Energy my understanding is that a separate electrical meter doesn't cost that much. I'm sure it is a drag and an unexpected expense, but if you can swing it you'll be saving yourself and your tenants headaches now and making your property more valuable for a future owner. If I were a tenant I wouldn't want to pay a percentage of the overall bill - while watching my neighbor leaving their windows open in winter - or air conditioning the back yard - or plugging in a big freezer on the porch - or operating a woodshop in the garage, etc. You get the picture...

Canneton Howard · Answer

Thanks for all the comments.

Yes, ideally I would like to have two furnaces but again the cost for it is a big cash flow killer. I'll start with finding out what the local building code is and go from there. @Teri S. where can I get such information on the building codes? I looked up El Paso (Pikes Peak Regional Building Department) but I didn't see anything specific for building codes.

@Todd Dexheimer, aren't the electrical baseboards a fire risk, especially with tenants? Just seems like a higher risk. Not throwing out your idea completely, just trying to look at all the pros and cons.

@Tim Swierczek, I don't think that applies to my situation since I pay for the utilities and bill it back to the tenants. I take the average of the utility bills and split it 60/40 since one of the units is larger than the other. I know a lot of people will argue against that, but I haven't had any issues with it.

Tim Swierczek · Answer

@Canneton Howard have you figured out the payback yet?  $11,500/200 is less than 5 full years and that is a 20% return.  I'm not saying I'd love to pay that kind of money but it could make sense.  As for price, it sounds like a steal.  I have had it quoted twice and in my market, the ductwork, plus patching, painting the walls after install is easy $15K, not including the furnace.  Now subtract the rent gain you get from paying utilities and see how that goes.  Lastly, when the code is f'ing silly get creative.

Todd Dexheimer · Answer

@Teri S. even if that is the case. Zoning or electric baseboard will be much cheaper than all new. In Minnesota, tenants don't need to have control of their heat, but it needs to be at or above 68 degrees if they cannot control it.

Teri Feeney Styers · Answer

Canneton Howard I think @Alex Deacon and @Todd Dexheimer are incorrect. I am a flipper in Colorado. Each county has its own building codes (some have none). In my county a tenant MUST have control over their own heat. In most cases this would mean their own furnace unless you have a way to zone the heat and give them thermostatic control. Likewise, each tenant must have access to their breaker box for electrical. Both requirements make a lot of sense.  You need to check with your local building dept.

Roy N. · Answer

It's not necessarily BS.  There are places where if building new, or renovating / replacing the HVAC you may be required to have independent ductwork to each unit.  Alternatively, you may only be required to install and maintain fire dampers where ductwork traverses the boundary between units.

From an air quality perspective, it is always preferable to have independent duct work (and furnaces) - share ducts are a great conveyor of odours, viruses & other pathogens, smoke, dust/particulate, etc.

Required to split furnace on multi-family?

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