Multi-family home; switching from propane to electric heat?

Question

Looking to purchase a 6-unit multi-family home. Current owner pays for propane heat for the entire property amounting to an additional 9.6k annually. We, of course, would like to switch over to a system where each tenant pays for their own heat. Each apartment has their own thermostat and hydronic baseboard heat, which connects to one furnace (used for all the units) in the basement. Since we are unable to hook-up to the natural gas grid, I’m thinking our only option would be to buy individual energy efficient electric boilers for each apartment, and then hook up each individual boiler to the tenants electric submeter. Would love to hook up 6 individual tankless hot water heaters as well. However, each unit does not have their own water meter; there is only one meter for the entire building and the cost of water and sewage is included in rent.

Is this idea even possible? Rent is already FAR below market value. Lots of potential here, we just don’t want to get trapped in a 10k heating bill every year.

Any advice on this issue?

Is this idea even possible? Rent is already FAR below market value. Lots of potential here, we just don’t want to get trapped in a 10k heating bill every year.

Any advice on this issue?

DJ Tosh · Answer

@Heather M. There's a lot of information missing here that would enable an answer. Anything of this nature should be discussed and cost mapped with local professionals. I spent many years as a general contractor, and from what you've described, this is a scenario that won't be advantageous to execute. All of that work to create the efficiencies you discuss will put your ROI quite a ways out. Wouldn't it be easier to bill the heat to the Residents and retain the commercial boiler since the property seems to have 6 zones? Again, I have no clue where the property is and if this is possible or not(RUBS). I would also ask whether or not the fundamental structure isn't more so the problem? i.e. Insulation, Windows, Sill beams, etc
Keep digging in and analyzing opportunities!

Bruce Woodruff · Answer

@Heather M. - How much will the bill be to heat using electricity? I know you wont be paying it any longer, but it still matters what the cost will be....will you lose renters because the cost to heat will be too high. Where I live, it is cheaper to heat with propane than with electric.

But if you must go electric, I would look at the Mini-split systems from companies like Mitsubishi. They will be a little pricier, but definitely worth consideration...

Jeff Copeland · Answer

The limiting factor us usually the capacity of the electric service and the electrical panels in each unit.

Tankless water heaters, for example, often require two to four additional 40-amp circuits.

An electrician will have to do load calculations and inspect your service and panels to answer your question.

The cost of upgrading the electrical panel (x 6) could easily make this a non-starter. It just depends on what's there.

Multi-family home; switching from propane to electric heat?

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