Heating for Chicago multi units: space heater?

Question

Hi BP, first time poster. Am looking at a 2 flat currently that has a heating situation I haven’t run into yet, and would like your thoughts. The units are each heated by individual self-contained  space heater/ furnace units in the main living area. These units are the only point source of heating for the entire floor and I’m a bit concerned the heating isn’t going to be uneven/uncomfortable for thetenant. Have others had successes or horror stories with these? It is a very old building, well kept though. Would love some opinions for this TX guy who hasn’t had to deal with heat for much of his lifetime. Thanks!

Matthew Olszak · Answer

Thats somewhat common in dated buildings and class C rentals. If its the super-old units that sit on the floor, that'll limit your maximum rental substantially. If its a wall unit, you might get some push back from renters depending on the area. Forced-air is best and can be installed with the unit and ducts for about $4.5k/unit.

John Clark · Answer

Chicago code is that EACH habitable room must be at a SUSTAINED temerature of 68 degrees F during the day and SUSTAINED 66 degrees F at night. That requirement CANNOT be waived by the tenant, so there's no taking it out in the rent.

If the existing heating units cannot do this, they must be replaced with systems that can, BEFORE renting. Portable heaters CANNOT be used as a substitute or suppliment in order to meet the code.

Sorry, replace the heat systems before purchase/rental.

Allan Smith · Answer

in this day and age I dont see why landlords wouldn't all have forced air. To me it's almost an ethical issue. Plus, Chicago gets very cold. I'd upgrade the heating and cooling.

John Warren · Answer

@Peter Graves I have run into this situation quite a few times in properties in the near west suburbs like Berwyn and Forest Park. Most municipalities in the Chicago suburbs require these to be de-converted and replaced by a modern heating system (normally gas forced air). I would budget at least 5-6k for this project, and then would also plan for extensive drywall patching of maybe $1500 in the unit to build soffits and patch walls.

If this is a C class property, you could potentially look into installing electric baseboard heaters as an alternative. I have several properties with electric baseboard, and they are absolutely bullet proof. They are about 20-30% more expensive for the tenants to operate than gas units, but you will never have a service call. Again, I wouldn't put this in an A class building where expectations include air conditioning, dishwashers, etc.

Thomas S. · Answer

If it is a older property that has been a rental for a very long time it is functioning fine otherwise a previous owner would have realised the problem and changed the heating system. Rent is likely set to compensate. New investors should not assume existing infrastructure needs to be changed or upgraded.

If you decide to upgrade you will need to evaluate whether you can raise the rents accordingly to pay for the upgrade. If not then you do not spend money on improvements. First find out if there is a variance in rental rates in your area based on heating systems. Your decision should only be based on the numbers. If it does not add value you do not spend money beyond necessary repairs.

There is absolutely no reason to reinvent the wheel if the system is functioning as is.

Kenneth Garrett · Answer

@Peter Graves

When the only source of heat is in the living room the bedrooms will be to cold.  The minimum heat required in all habital rooms per code is 68 degrees.  Not sure what Chicago’s rule is.  I understand you could tell the tenant they will need to leave the bedroom doors open to get heat, I can tell you it will be a problem.  If the tenant complaines I think you are going to have problems.  I would add heat to the bedrooms like @Matthew Olszak suggests.

Good Luck.

John Warren · Answer

@Peter Graves where are you located in the city? Most of my folks are only doing jobs in the near western suburbs. I am happy to share if they would be useful. I will send some names over. If you are on the north side, I can connect you with a few investor friends there as well.

Peter Graves · Answer

@John Warren thanks for that info. Do you have any recommendations for HVAC contractors we should talk to? We had a quote yesterday that was around 30k for the whole house (2 units + attic unit) and from everything I've read that seems really high.

Peter Graves · Answer

Awesome, thanks all for the input. Seems like something we would need to take into account in the near future if we want to maximize rents.

Heating for Chicago multi units: space heater?

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