I'm looking to buy my second multi unit rental property in the North East. The numbers look great and it's in a solid location but the one thing I am not familiar with is it uses oil heat (my current multi is gas).
Is there a lot more work dealing with tenants and oil heat and are tenants less likely to want to rent units with the added cost of oil and the hastle of having it filled? Since tenant utility costs would be higher than gas, I am not sure if I would have to ask for below market rent to compare to cheaper gas heated units.
Lastly, if I was to convert to gas, does anyone have an estimate of the cost for a 3 unit?
Hi Eric, I converted a few of my SFH to gas last year. They averaged around $2,500 to convert. Mind you that there was gas already in the house so the hookup was all done on the inside.I actually charged a bit more for rent after the conversion and the tenants all said one of the deciding factors was that it had gas instead of oil. Peoples here up in the Northeast (as you must know) cringe when you say its oil heat!
Thank you for the info. Not having rented a oil unit before I was unsure how big of an issue it was for tenants. But it for sure makes since that most people would see that as a downside with the additional cost of heating the unit. I'm seeing the place tonight so I'll have to check if there is gas currently hooked up for other appliances. Thanks!