Heating
My tenants pay their utility bills. Tenants in one of the buildings were complaining that their heating bills were high this year. This building has electric heat and the hot water heater is run by electricity also. Will oil heating be cheaper? Should I think about changing into oil heating?
look in to natural gas, its about the most efficent
John
Hello ahmedmu,
I would not change the heating system, myself unless the old system is starting to cost me lots of money in repair bills. Otherwise I would consider replacement windows (if they are not double pained already) or adding insolation.
Oil heat can be very efficient. However, the price of oil can very greatly. Example in Sept oil went for $1.25 a gallon. Now it is $1.70. The same happened last year. If you keep the temperature at 76 degrees (MY tenant), I do not care what you heat with it is going to cost alot. I heat my house(2000 sq. ft) with a heat pump and is all electric...the most expensive bill I have ever had is about $225 a month (January). My summer bills (with AC) rarely top $100 (western part of Virginia). Make sure the system you have now is well kept. Try replacing/insulating the water heater and insulating pipes. Repair/replace windows. Insulate (especially the attic). These are fairly cheap first option. Be prepared for multiple thousands of dollars for oil, gas or hot water heat replacement or upgrade (especially if you have to add pipes and ducts). I was quoted at $4300 for my rental duplex for replacement of oil hot water with a simular unit and the addition of 1 pipe run.
Thanks for all the helpful answers.
I have electric heat with baseboards.
There's several things you can do that would be much cheaper than adding oil heat. Ventless gas space heaters are cheap to buy, operate, and have the added benefit of increasing the humidity. Adding celulose insulation yourself to the attic is cheap and will help more than anything. If you decide to go the windows route, I would simply add storms. Window salespeople will often say that storms don't add anything to insulation. Look at the research study that was done on the following link though and you will see that a single pane window with a storm is just as good as a new double glazed window at reducing energy bills.
http://homeenergy.org/hewebsite/2002features/19-4/19-4_text.html
Check with your city/county housing authority about grants/low interest loans to improve energy efficiency. Electric baseboard heat is not very efficient.
Thanks again everyone. I have a tenant there who doubles as the super and gets a rent break. He is checking out with housing and others. I have an electrician freind who does rehab and sells properties; will talk to him as well.
Best regards.