Submetering gas for 17 unit apt complex? Can?

Question

I'm looking into a 17 unit apt complex where presently the owner pays the gas bill. Needless to say, the winter months are killer..

I was wondering if anyone here knows anything about submetering gas for an apt building. The apts are in the state of ohio. What would be the cost, if it can be done and/or what would be involved..

Thanks in advance

Account Closed · Answer

I think that the cost of separating utilities gets paid back real quick.

Also, when you sell, a building with separate utilities is worth a heck of a lot more than one where the landlord pays the utilities.

I'd call the gas company and ask about having each unit put on its own meter. That way the tenant gets billed directly.

If you sub meter, you still have the problem of collecting from the tenant, and you have to listen to them whine about the cost every month.

Brian Stone · Answer

You could look at allocating the gas costs if it's allowed in your area.

Brian Stone · Answer

They make different kinds of meters that measure the usage of heaters and then the use that measurement to allocate the gas bill to each tenant. It's not a "true" gas meter but it works.

Michael R. · Answer

I dont know what you mean by boiler but also keep in mind that if there is not separate water heaters in each unit you might need to re-plumb also to separate the plumbing for each unit. Personally in my area a 17 unit with shared utility's would be alot less than one with split utilities and purchase prices reflect this.

Dick M. · Answer

"one boiler for the complex and gas heaters in each apt unit..."

I don't understand that, but the way to go would be to install a Rinai heater in each unit . I have a few and they are low maint and efficient. Assuming the gas co will give you 17 meters...

Tod R. · Answer

Does your competition submeter gas?  If not, you may be fighting an uphill battle going against the market.  All thing being equal, tenants will go with all bills paid.

Bret Johnson · Answer

Bradz and Steve have covered most of it, but I suspect the costs are higher than Bradz suggested.  As mentioned, you'll need to provide a separate heat source in each unit. A new forced air unit and duct work is going to get pricey in a hurry.
Electric baseboard is an option, but would most likely require a new panel for each unit to pick up the load.  Again a fair amount of up front cost, and as mentioned the higher utilty costs might drive rental turnover.
You might look into boiler replacement.  If it's an older unit you could get considerable savings and possibly a rebate from your utility company.
All said if you're not contemplating a complete rehab of the building, sub metering is going to get expensive in a hurry.

Eric Byrd · Answer

one boiler for the complex and gas heaters in each apt unit...
Owner presently pays gas bill... wondering how and/or if submetering is possible...

Thanks for the reply

Eric Byrd · Answer

Please clarify, are you suggesting it might cost $25k total to make this happen? Roughly $1.5k per unit cost? Tenants currently pay electric, so my 1st thought was baseboard heat..

Steve Babiak · Answer

Unless you have separate heat for each unit, the sub-metering will only distribute the gas used for cooking (if it has gas stoves) and the hot-water heater (if each unit has its own separate hot water heater).  And those two uses are usually not what drives up the bill in winter.

Submetering gas for 17 unit apt complex? Can?

Most Popular Reply