One boiler for five units?

One boiler for five units?

Peter MorrisseyPro Member
Rental Property Investor · Syracuse, NY · Member since 2016 · 66 posts · 11 votes

I have an opportunity to purchase some properties before they are listed. one of them is 5 units but only has one heating/electrical. It is zoned for the five units. It is a boiler which I am told is generally more efficient. There is a cost listed for the utilities, and I can ask to see bills to verify. So in the end it is just a matter of figuring out what rents I could get in that area which is pretty nice. I can  handle all of that, but just wondering what complications having one heating system could cause. Concerned that there would be difficulties for each tenant to regulate heat to their liking which will also vary by prevailing winds as it does in my house. More drafts on the north/west etc. I grew up in a house with radiators and it did have a valve that could be adjusted so maybe not a big deal?

I also think advertising the price could be an issue. If I have to pad it say one or two hundred to cover my costs, it will appear higher on a search. I suppose I could advertise the price w/o heating and then in the add clearly state that heating/electrical is an additional flat fee and list it. I also don't want to do anything misleading or illegal.

Any other pluses or minuses for this approach? Only one heater to maintain might be a plus although boilers cost a lot more to replace.

I hope to view the property in the next day or two.

I am aware that I will need a commercial loan due to the five units.

Pete M.

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  • Lowell, MA · Member since 2014 · 260 posts · 99 votes
    9y
    In the past I was adamantly against having one boiler servicing multiple units. I have since purchased A 12 unit building that has one boiler for the entire complex. I purchased thermostats that can be preset to go no higher than a very comfortable 72° so the tenants are not overheating the units. Also it's one system I will need to repair as opposed to 12. Many tenants look exclusively for buildings that provide heat and hot water. It's one less thing they have to deal with.
  • Peter MorrisseyPro Member
    OP
    Rental Property Investor · Syracuse, NY · Member since 2016 · 66 posts · 11 votes
    9y

    Thank you Robert. I will have to see if there are actual thermostats. I agree that some tenants might like the idea of having predictable heating costs which makes it easier to do their budgeting. In this area water is usually paid for by the landlord anyway.

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