Radiators and high utility bills

Radiators and high utility bills

Yonkers, NY · Member since 2017 · 57 posts · 10 votes

We purchased a 3 unit home that was built in the early 1900's.  Two units are section 8 from the Feds and one is free market.  The families have been there forever... At least 12 - 20 years.  The previous owners had a horrid prop. management company, a Real Property Management affiliate, and there was basically no work done to maintain the home.  The home is not to our standards and is borderline unsafe, so we've been slowly fixing the items we're allowed to fix.  The furnaces are 40+ years old and the boilers are from the 80s. Since we are paying the heat, we need to find a way to  lower the heating bills.  The monthly bills are 200+ a month in the winter per 2 bedroom apt.  We were thinking of installing an ecobee so we can monitor the usage, but I was just told that the entire building has radiators.  How do we convert the radiators to something that is more efficient while the tenants are still living in the units?  

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  • Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Kenny M.

    We own multiple 3-family properties in the northeast and have changed boilers and hot air furnaces many of times (just did one last week). First off, how many boilers and furnaces do you have for a 3 family property? If each unit has their own; why are you paying for them (other than the previous owner did that)? What fuel are they using? We switched every unit to natural gas after we purchased them; I would make this a goal if you have oil currently. Next, the issue is not really the temp in the apartments but the 40 year old inefficient furnaces/boilers.

    What my goals would be. 1. Switch units to natural gas and if you have oil currently, try and use up as much as possible now because it is expensive to correctly remove heating oil from a property if you switch to NG; do small oil fill ups until it is summer (also diesel fuel is the same as heating oil). 2. Speak to heating contractors and start getting pricing on changing all furnaces and boilers over the summer. If there are not separate units for each unit, maybe do this. Not that difficult, especially if you already have 2 units. 3. Start transitioning your tenants to paying their own NG heating. Maybe tell them that they are covering heat starting September 2020. Maybe deduct some money from their rent for doing this; $50-$100 a unit per month?

  • Yonkers, NY · Member since 2017 · 57 posts · 10 votes
    6y
    Originally posted by @Charles Carillo:

    @Kenny M.

    We own multiple 3-family properties in the northeast and have changed boilers and hot air furnaces many of times (just did one last week). First off, how many boilers and furnaces do you have for a 3 family property? If each unit has their own; why are you paying for them (other than the previous owner did that)? What fuel are they using? We switched every unit to natural gas after we purchased them; I would make this a goal if you have oil currently. Next, the issue is not really the temp in the apartments but the 40 year old inefficient furnaces/boilers.

    What my goals would be. 1. Switch units to natural gas and if you have oil currently, try and use up as much as possible now because it is expensive to correctly remove heating oil from a property if you switch to NG; do small oil fill ups until it is summer (also diesel fuel is the same as heating oil). 2. Speak to heating contractors and start getting pricing on changing all furnaces and boilers over the summer. If there are not separate units for each unit, maybe do this. Not that difficult, especially if you already have 2 units. 3. Start transitioning your tenants to paying their own NG heating. Maybe tell them that they are covering heat starting September 2020. Maybe deduct some money from their rent for doing this; $50-$100 a unit per month?

    Thank you for your reply!  Three boilers and three furnaces already on natural gas.  The original plan was to not renew the leases, but then COVID-19 happened, so we turned them over to month to month.  One tenant lost one of their jobs, but they would consider revisiting the utility issue once things get back to normal.  The other tenant didn't reply, so I assume they may have to be evicted one way or another.  We do want to replace the old furnaces and boilers with new ones, and that was the original plan.  The tenants were supposed to move out as we were not renewing their leases and then we'd turn over the units with all new layouts and upgrades.  Since there is a moratorium on evictions for at least another 60 days, it was better to get something instead of nothing, so we kept them on a month to month lease.  So, in the meantime, we're trying to figure out how to make this house more efficient.  Not the easiest thing in the world when tenants are still there.  One of the tenants doesn't speak any English, and her daughter has been the intermediary.  She's been less than helpful, so that's why I feel eventually they will be thrown out.  Usually, when I reach out to her case worker, she then replies as they do not want to lose their eligibility.  

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