Switching To Baseboard Heat
Hey all,
I wanted to get your opinion on this idea. I am currently looking at a 7 unit building in which the owner pays heat. The current annual utility cost is around $8500.
I am thinking if I purchase this building, I will install electric baseboard heat as the units turn over. This will ultimately allow me to provide "basic" heat in the form of around 60 degrees while the baseboard heat will take care of the rest. And of course, the tenants pay electric.
What are your thoughts. This could really increase my NOI overtime.
TIA - Gino
Oh and sorry - I meant the total annual gas cost was $8500, total utilities are around $12200.
I think the idea of providing a basic level of heat and letting the tenants pay for it if they want it warmer is rather clever. Personally I would set it a bit higher- more like the 68 degrees I keep my own house at- just because electric heat is so expensive. But if they want to waste heat, let them pay for it...
I guess the big question is how heat is regulated in the building. With many systems it is easy for the tenants to trick the thermostat into providing more of the free heat.
Chris
Funny timing, I just got a quote for a 2 family house -gas heating-steam heating to lave boiler for 2nd fl w/steam, and put hot water heater baseboard for the first floor w/a new gas boiler for around $6,000. Expensive, but can recoup in 4-5yrs or so- With NO heat complaints of too low, or high. Any ideas from persons who have already implemented this? Pros? Cons? Thanks