Rental Property Investor · Southern NH · Member since 2017 · 87 posts · 100 votes
We bought a three family multi this summer in NH that was previously owner occupied for many years. The last owner provided the tenants hot water radiator heat via a single thermostat for the building that he controlled in his unit. That being said, we just installed a thermostat that limits the heat to 72 F on the top end because it was like Hawaii when we came up to work on the vacant unit and its costing us a fortune. We intend on buying new separate-metered equipment so each unit can control their own.
The burner is oil fed, dirty, and expensive to run under tenant control (as expected). There's a NG line that runs by the house that we could tap into so we'd like to pick your brain about options that worked for you if you had to deal with this. Separate wall vented forced air NG units? New small boilers in the basement that feed existing plumbing loops/radiators in each apartment? What did you spend? Would you do anything different?
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Chris R., the rub here is going to be how the heating is plumbed. It may not be practical to re-plumb the lines to that each unit is on it's own loop. It really depends on the layout of the building, etc.
If the plumbing isn't an issue, I definitely recommend the high-efficiency, direct-vent gas boilers. There are some models that also make HW, which can be ideal for a smaller unit.
Another option to consider are mini-splits. This can provide heat in the Winter and A/C in the Summer, which may be a real advantage to tenants.
What about HW? Does the current boiler also provide domestic HW?
@Chris R., the rub here is going to be how the heating is plumbed. It may not be practical to re-plumb the lines to that each unit is on it's own loop. It really depends on the layout of the building, etc.
If the plumbing isn't an issue, I definitely recommend the high-efficiency, direct-vent gas boilers. There are some models that also make HW, which can be ideal for a smaller unit.
Another option to consider are mini-splits. This can provide heat in the Winter and A/C in the Summer, which may be a real advantage to tenants.
What about HW? Does the current boiler also provide domestic HW?
Thanks Jaysen - We're looking at all options...a visit from a few HVAC guys will answer a lot of questions but I hate going into these discussions not knowing what I don't know. Yes, the furnace also provides domestic hot water to the house. I'm taking a guess that your suggestion of direct vent heaters or mini splits will make the most sense. Nothing was built to code in this place so I'd be very surprised if we're able to use existing heating loops to accommodate new forced hot water boilers.
We bought a three family multi this summer in NH that was previously owner occupied for many years. The last owner provided the tenants hot water radiator heat via a single thermostat for the building that he controlled in his unit. That being said, we just installed a thermostat that limits the heat to 72 F on the top end because it was like Hawaii when we came up to work on the vacant unit and its costing us a fortune. We intend on buying new separate-metered equipment so each unit can control their own.
The burner is oil fed, dirty, and expensive to run under tenant control (as expected). There's a NG line that runs by the house that we could tap into so we'd like to pick your brain about options that worked for you if you had to deal with this. Separate wall vented forced air NG units? New small boilers in the basement that feed existing plumbing loops/radiators in each apartment? What did you spend? Would you do anything different?
Thanks, Chris
The most efficient system will be the single boiler feeding all units. If you upgrade to a high efficiency NG unit, your bill will drop considerably. Install separate controls in each unit to fine tune heat delivery. I would not split out to separate units for billing. The upfront hardware will cost way more and overall it will be less efficient. It will also affect your rent value. Let's say today you include heat and charge $1000 per unit. Once you saddle the tenant with a $100 per month heat bill, your rent goes down tot $900. That is because you are competing against other properties that include heat. Why would someone pay $1100 (total) to rent from you when the property next door includes heat so only costs $1000?
Another option for billing with a single boiler is to split the bill three ways and bill back tenants. That avoids the cost and efficiency loss of three separate units.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
I agree with @Joe Splitrock, that a single boiler will be the least up-front costs. As far as affecting the rents, that's pretty specific to the local market and your competition. I wouldn't assume that you'll definitely have to lower rents. Do a bit of market research.
I would be very cautious about splitting the heat/HW cost 3 ways and billing back to tenants. That's illegal in some states/municipalities. If you can't meter/prove what each tenant is using, you can't bill them for it.
I agree with @Joe Splitrock, that a single boiler will be the least up-front costs. As far as affecting the rents, that's pretty specific to the local market and your competition. I wouldn't assume that you'll definitely have to lower rents. Do a bit of market research.
I would be very cautious about splitting the heat/HW cost 3 ways and billing back to tenants. That's illegal in some states/municipalities. If you can't meter/prove what each tenant is using, you can't bill them for it.
My point was just that tenants are not dumb. If there are two apartments for rent that are identical, both listed for $1000 and one included heat and the other doesn't, then they are going to rent the one that includes heat. I think that is true of any market, because competitive forces work the same everywhere.