Looking for feedback.

I looked at a 1 bed/1bath condo today. Nice enough place but it has Electric Heat. Knowing it can be quite expensive, my question is will or does it tend to scare away potential renters?

Thanks

Glenn

Electric heat is more expensive.   Since it is such a small unit, you may get away with using it.  

Is the rest of the building occupied ? if so there are lots of other people there with electric heat 

Originally posted by @Glenn Paulson :

Looking for feedback.

I looked at a 1 bed/1bath condo today. Nice enough place but it has Electric Heat. Knowing it can be quite expensive, my question is will or does it tend to scare away potential renters?

Thanks

Glenn

Hey Glenn,

You're correct in that it's quite expensive, but the difference will be less pronounced in a smaller condo than in a multi-story SFH.

Assuming you're in a desirable area of North Jersey, the condo should not have an issue renting out either way. You may find prospective tenants who are turned off by it, but there's such a supply shortage compared to demand around these parts that you'll appeal to enough of the masses.

One point worth considering, though, is that you'll want to ensure that your tenant has sufficient means to cover the seasonal swing in utilities. In the summer, residents can live without A/C, uncomfortable as it may be. Living without heat in a cold, Northeast winter is a different story, though. As such, you'll want to be certain that they can handle the change from $70/month in electric bills during mild months to $200/month in the midst of winter. If money is tight, it's fair to assume they'll ensure that their heat is still cranking at the expense of their landlord receiving full rent.

A newer condo unit will be cheaper due to better insulation and if it is an interior unit even better. Ask for bills or call the electric company. in a SFH it is a turnoff for some people.