Investor · Stillwater, MN · Member since 2015 · 108 posts · 44 votes
Advice needed : I have an older duplex in Minnesota that has had all the radiators removed. The old boilers are shot as well. I’m putting in a heating system from scratch.
Electric heat is the least expensive to install. Does electric heat make the property less valuable upon resale? More importantly, does it make it less attractive as a rental? This property will be a Class C property.
@Joe Schaak I have a four unit in Lyons, IL with electric baseboard, and it has been far and away my easiest and most profitable investment. It is in a quiet, B class area, and the tenants have not every complained. Best of all, I have never had a service call on the electric base board. The same cannot be said for my forced air and boiler heated buildings in the area.
I also have a 20 unit in a C- area, and we have electric baseboard there as well. The tenants have mentioned it being expensive a few times, although this particular group of tenants keeps the heat in the 80's and 90's, so I don't feel too bad for them. Again, the baseboard heaters have had minimal issues. A few of the units have needed to be replaced due to tenant damage, and they are very cheap to replace. I think they run $50-75 each at home depot plus a bit of labor to have the handyman install them.
I would think long and hard before you drop 5-7k per unit in a C class area installing forced air. Just throw the baseboard heaters in and be done with it.
Thanks, everyone, for the helpful feedback. I’m leaning electric with programmable wall thermostats so they can control the temps easily. Each bedroom, the bathroom, and the living room/kitchen will each have their own thermostats. I’m replacing windows or installing new storms and new insulation in the ceilings (walls already have it). That said, I’m going to spend some time researching what other properties in the area are using to be safe. I would LOVE to do solar and make this a greener building but, unfortunately, the numbers don’t allow for it.
@Ray Harrell my bad Ray i just re read your post, I was real critical.
IMO eclectic base boiled heating is shortsighted in cold climates. I’ve owned stuff with them and talked over with other landlords on the plus minus. They are cheap to install as long as you can go from below or above without to much patching so that’s good.
but in my houses the winter is cold they are old brick buildings with single pane windows...of course no insulation.
We fix all that but the combo of that and elec baseboard kills the tenants they can never get ahead. So when I buy I change the heat. I figure I’ll have to replace them every 7-10 years with a bit of maintenance
And they are very efficient. Better then the heat in my house....which is electric. Wife’s always complaining about the high bill.
Just a final update to close the thread. I ended up do forced air in both units of the duplex with separate heating. I also added AC as well. By adding a bedroom to each unit, I was able to cover the added expense of forced air. Thanks for all the conversation and advice!