Heating bill high tenants keep thermostat high

Chicago, Illinois
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Heating bill high tenants keep thermostat high

David P.
Rental Property Investor · Chicago, IL · Member since 2021 · 29 posts · 6 votes

Hello everyone.. I have a 3 unit building i pay the heating bill its all in one meter  these last few winter gas been been high not even high I personally saw for myself they keep the thermostat hight 74... 76 a few times mentioned keep low bill been high at this point I'm force to make changes and suggest how to handle this ..

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Keith Jablonowski
Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes
9mo

Outside of installing tamperproof thermostats that allow a range of temperatures that you set, not much you can do in the middle of a lease.  For the future I would put in your lease a range that you will cover.  Anything above that will be split between the tenants.  

You can also try to have a reasonable conversation with them now to see if they will keep it set lower or chip in towards the bill, but if it's not in the lease cannot force them to. 

Unlimited utilities are just an incentive for tenants to use as them as much as they want even if excessive.  

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  • Keith Jablonowski
    Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes
    9mo

    Outside of installing tamperproof thermostats that allow a range of temperatures that you set, not much you can do in the middle of a lease.  For the future I would put in your lease a range that you will cover.  Anything above that will be split between the tenants.  

    You can also try to have a reasonable conversation with them now to see if they will keep it set lower or chip in towards the bill, but if it's not in the lease cannot force them to. 

    Unlimited utilities are just an incentive for tenants to use as them as much as they want even if excessive.  

    5Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    9mo

    @David P., I am guessing that the heat is something like natural gas and that each tenant pays their own electric. 

    If so, I might put a thermostat in each unit that is locked at a setting that is above the required required by law in your market and install some electric baseboard heaters. This way, they can adjust to the level of comfort for themselves as they wish. 

    They can make their bedroom 76 degrees while they sleep while leaving the rest of the unit heated on your (gas) system to the thermostat setting. They can turn down all the electric heat when they go to work so that your system is keeping it heated while they aren't home. So, this way the added comfort level is on their dime.

    Or simply raise the rents and install thermostats that only allow them to adjust within a certain range. 

    0Reply
  • Tj FlorosPro Member
    Real Estate Agent · Chicago · Member since 2025 · 95 posts · 74 votes
    9mo

    Peoples gas bills are always going up. I had an old framed coach house that even the heat turned up to 85 the house never got above 65 in the dead cold of the winter. I did a gut remodel and found the building had no insulation throughout and no insulation around the window. I was paying around 400 a month for heat for a 3 bed 2 bath 1100 sq ft space. Im glad i gutted it and got it up to code. 

    While that might not be the best approach for you, outside of increasing rents the next time the leases are up i would suggest speaking with a couple plumbers and getting each unit metered on its own. Its not $1k fix but over time as these expenses go up with higher taxes you'll be happier you are not paying it anymore. 

    I would not suggest trying to lock the temp at a certain temp, even at a temp in the mid 70s' although you are good with the RLTO and wont get in trouble with the city, tenants will complain to you and you'll be on bad terms with the them. I would rather keep a good paying tenant happy within reason, because as you know tenants have a lot power compared to the landlord. I know it sucks now having to pay high bills that cut into your cash flow but hopefully you make it up during the summer. In the end I would consider trying to get every unit on its own meter and get the tenants paying for gas/heat and electric. Water/trash will always be the landlords problem here in Chicago.  

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    9mo

    That would drive me nuts so I would have to meter them separately and the tenants can pay for their own level of comfort. 

    0Reply
  • Allan C.
    Rental Property Investor · Member since 2018 · 826 posts · 810 votes
    9mo

    Implement a RUBS system next time you go through renewals. Many tenants pay for their own utilities in Chicago, so you are giving up margin by not charging it back to them. 

    1Reply
  • Donald Nichols
    Real Estate Professional · Chicago, IL · Member since 2015 · 17 posts · 6 votes
    9mo

    Add a lock box or get a thermostat that has wifi and control it remotely. Send a letter to your tenants, reinforcing the laws and guidelines for what a landlord is supposed to provide to their tenants concerning heat.

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    9mo

    I have multiple heaters/hvacs that I set the temperature range and the thermostat can only select temperatures n the range that I set.   I do not know how hard it is to retrofit a system to have this capability.  

    If you have this capability, you can set a maximum temperature of 72 and the tenant could not set the temperature higher.   If they want it warmer, they could provide their own electric heaters to get it warmer, but they would be paying for the electric utilities.


    good luck

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 612 posts · 453 votes
    9mo

    This is a common issue when heat is master-metered, and unfortunately it’s a structural problem, not a tenant behavior problem.

    A few important points, especially in Chicago:

    You cannot require tenants to keep thermostats at a certain temperature.

    Chicago heat ordinances protect tenant habitability. As long as they’re not damaging the system, 74–76° is not unreasonable in winter and is not something you can police.

    When the landlord pays heat, tenants have zero incentive to conserve.

    No amount of reminders will fix that. The system is misaligned. This is why master-metered heat is one of the biggest margin killers in small multifamily.

    Short-term mitigation options:

    • Install lockboxes or programmable thermostats with limited ranges (still compliant with local code)

    • Improve insulation, weather stripping, and seal air leaks

    • Service and balance the heating system to make sure it’s not over-firing

    These help, but they won’t fully solve it.

    Real fix (long term):

    • Sub-meter heat if feasible, or

    • Convert to individual heating systems, or

    • Underwrite higher rents that assume landlord-paid heat as a permanent expense

    Many Chicago investors simply bake this into rent and accept lower margins, or they eventually reposition the building when leases roll.

    Do not try to change rules mid-lease.

    Any change to utilities or control needs to happen at renewal and be documented properly, or you risk violations.

    Blunt truth:

    If you’re paying the heat, tenants will use it. The solution isn’t enforcement, it’s metering, system design, or pricing.

    This is one of those lessons most small multifamily owners learn the hard way.

    4Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    9mo

    You can put things in your lease until you are blue in your face, the only feasable solution is changing the hardware.

    2Reply
  • David P.
    OP
    Rental Property Investor · Chicago, IL · Member since 2021 · 29 posts · 6 votes
    9mo

    Appreciate all the information this is helpful and how do deal with this

    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    9mo

    I would have a separate provision in the lease that if peoples gas is between x and x, you'll cover it . Anything above that will be split based upon SF. I'd run that by an attorney.

    having master metered units like you have is very common in Chicago. 

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  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    9mo

    I hear some of the suggestions but not sure how any of them workout. I don't know anyone who has implemented heat controls or put stuff in leases about it. What is unreasonable to me may not be unreasonable to the next person. Most people have the electric separately metered, so they pay. If not, they tend to charge higher and just bite the bullet if it goes over. In my multis I typically have to pay for water. I can't see me controlling how much water each one uses. I had some tenants who paid their own electric, but they kept place so cold, I'm sure they shortened the life of my HVAC (60 degrees). Several of the people were 400 pounds plus. it would be hard for me to tell them what temperature is comfortable for them. 

    On a side note, once my water bill came in at well over 2k. Its usually between 400 to mid 600s at the most. No matter what I never found and explanation of how that happened. I had to eat it eventually after months of protesting lol 

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    9mo

    Hey There @David P. - Where exactly is your building in Chicago?  How much are the bills compared to the usual cost?  Is it one unit or all three?

    A better question is, why are you paying for gas?  It's not common practice here in Chicago for a landlord to pay for gas.  Even if it's one meter, you could charge an average rate.

    Like @Keith Jablonowski mentioned, you might need to suck it up for the remainder of the least, but make some changes before you renew.

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