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Updated over 7 years ago on . Most recent reply

User Stats

7
Posts
1
Votes
Mike Cotter
  • Investor
  • White Lake, MI
1
Votes |
7
Posts

I'm Paying for Heat on My 14 Unit Apartment and its Killing Me

Mike Cotter
  • Investor
  • White Lake, MI
Posted

Looking for some advice regarding my extremely high  heating bills. I own a 14 unit apartment building located in Commerce Michigan. I currently pay the gas and water for my tenants while they pay for their own electricity. On average I see anywhere from $500 - $800 monthly heating bills during the winter months. 10 of the 14 furnaces that are in the units I've been there since 1968 when the building was erected. I don't have a whole lot of problems with them other than occasional pilot lights going out and making minor repairs.

My question is do I replace these gas units with electrical units? This way I pass the Bill back to the tenants where they would be less likely to have their heat on full blast and their windows open, which is always a joy to see. 

The price of gas is supposed to be going anywhere from 15 to 20% higher in the near future. I truly don't have a clue as to what the cost would be to take out the current wall unit furnaces and replace them with the electrical units. Are they safe?

Any and all help is much appreciated

Mike

Most Popular Reply

User Stats

2,030
Posts
3,308
Votes
Anthony Gayden
  • Rental Property Investor
  • Omaha, NE
3,308
Votes |
2,030
Posts
Anthony Gayden
  • Rental Property Investor
  • Omaha, NE
Replied

800 / 14 = $57.14 per month, per unit. Honestly that doesn't seem too bad.

Would it be possible to raise rents that amount to offset the cost? If not, can you implement some type of RUBS system?

  • Anthony Gayden
  • Podcast Guest on Show #21
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