Advice needed in Atlantic CIty from Multi Property Investors!

Advice needed in Atlantic CIty from Multi Property Investors!

Realtor · Monmouth County · Member since 2020 · 95 posts · 37 votes

Last Year I bought a 4 family property in AC.  3 of those units get their heat from one furnace.  I had several HVAC companies give me estimates for installing a separate furnace for each unit and the cost would be in excess of 30K.  Now I am about to close on another 5 unit property where again all units are heated with one furnace.  I would like to know what other investors have done to take this heating expense off their plate?  The tenants of the 4-unit all had their leases done by previous owner and heat was included as part of the tenants expense.  That owner would just billed them directly for the heat and cut it 3 ways.  The 5-unit are all on a month to month but the owner covers their heat.  I want to find a solution where I can bill them without having to always fight with tenants every month for the amount of gas heat they have to pay.  Can any one who has ever been through a similar situation tell me what steps you took to solve such a dilemma?

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  • Real Estate Agent · Atlantic City, NJ · Member since 2019 · 46 posts · 37 votes
    5y

    Hi Sarah, I have split the rent with tenants, and you are right it's not easy, however adding an additional fee to the rent to include the cost of heat or possibly installing electric baseboard heat in the units (contact an electrician to confirm the price of upgrading panels and installing) may be an option.  My client has a four-unit with electric heat, and he loves it since he does not have to cover any heating cost and furnace. Also, many company's will finance the install of the heat, and SJ Gas offers no-interest financing. 

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