Electric baseboard heaters in Cincinnati instead of furnace?
Member since 2021 · 27 posts · 17 votes
Electric baseboard heaters in Cincinnati instead of furnace?
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Marco FioreBusiness Member
Real Estate Agent · Cincinnati, OH · Member since 2022 · 78 posts · 73 votesHi Brandon, I hope all is well! From my experience, rents tend to be higher with having a furnace instead of baseboard heating. Also, baseboard heating is much more expensive which creates higher turnover. Overall, tenants aren't a fan.
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10 Replies
- 3yMarco FioreBusiness MemberReal Estate Agent · Cincinnati, OH · Member since 2022 · 78 posts · 73 votes
Hi Brandon, I hope all is well! From my experience, rents tend to be higher with having a furnace instead of baseboard heating. Also, baseboard heating is much more expensive which creates higher turnover. Overall, tenants aren't a fan.
eXp Realty - Marco Fiore Real Estate519 Reviews - Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes3y
Lets face it.. The less costly it is for the tenants, the more likely they are going to be able to pay rent to you... So, you can go cheap and get the electric baseboards, but tenants will realize either before or after they rent from you that the the higher utility bills are just adding to the cost of living.
Look at your market / competition... If you market can bear it, okay.. Or, be the one that is cheaper and potentially better living conditions. It depends on what sort of landlord you want to be. And if your issue is that you can't afford it, maybe you shouldn't be investing there.
Good luck.
- Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes3y
Quote from @Marco Fiore:
Hi Brandon, I hope all is well! From my experience, rents tend to be higher with having a furnace instead of baseboard heating. Also, baseboard heating is much more expensive which creates higher turnover. Overall, tenants aren't a fan.
I agree with this. Currently struggling with the unfortunate reality of tenants disliking it. Suggest staying far away from it!
- Member since 2021 · 27 posts · 17 votes3y
Quote from @Marco Fiore:
Hi Brandon, I hope all is well! From my experience, rents tend to be higher with having a furnace instead of baseboard heating. Also, baseboard heating is much more expensive which creates higher turnover. Overall, tenants aren't a fan.
After checking other rentals in the area I see the same pattern, going to go with the furnace. Thanks for your reply!
- Member since 2021 · 27 posts · 17 votes3yMakes sense, in my case It looks like the furnace is the best option. Thanks!
Quote from @David M.:
Lets face it.. The less costly it is for the tenants, the more likely they are going to be able to pay rent to you... So, you can go cheap and get the electric baseboards, but tenants will realize either before or after they rent from you that the the higher utility bills are just adding to the cost of living.
Look at your market / competition... If you market can bear it, okay.. Or, be the one that is cheaper and potentially better living conditions. It depends on what sort of landlord you want to be. And if your issue is that you can't afford it, maybe you shouldn't be investing there.
Good luck.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3yAloha,
You do not mention anything about the quality of insulation currently in place, and options to improve it. Also, how are your windows? Separate storm windows? Well sealed? 3rd story, converted attic? Is there ANY insulation up there?
If this is a long term hold, strategize to make the right kind of repairs and improvements that will pay off long term first, figure out the money part second. - 3yAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Brandon T. I’m in NH and am getting out of the business of paying for my tenants heat. I have one building I’ve owned 3 years where the tenants regularly keep the heat on 78 and wear t-shirts and shorts and go barefoot when it’s -25 out and I bought another one this past spring that when I was doing due diligence in the winter at least 3/8 units had the heat on 78 and the windows cracked and it was -15.
I am putting in propane Rinaii heaters. There will be one for each living room and bed room and I suppose if you had dining room/other rooms they would need one too. Each tenant will have their own propane account with my fuel company and a commercial rate which is about $1.00 cheaper per gallon than rack rate. It’s much cheaper and more efficient than electric.
It’s expensive but I will recoup my cost on each building’s oil cost in 2 years not to mention the write offs which I haven’t factored in.
For 18 units for my largest building it’s going to be $40K for running gas lines, 18 heaters, placing the heaters, placing the tank, digging the trench for the line to the tank from the building and reburying it, and having the propane company out to test all the units. I’ve already used $1500 in oil in 3 weeks for heat and it hasn’t been below 45 yet. So I know the building just eats fuel.
- Member since 2021 · 27 posts · 17 votes3yGood point about the insulation, the windows in the house are the original wood double hung windows with the strings and weights, and storm windows on the outside. We're going through and refurbishing each window by replacing the strings and weights, coating with coverstain and painting, which has been working great. The 3rd floor was originally finished so no conversion, but there's two small access doors on the knee walls on both sides where you can see there is in fact ZERO insulation between the roof trusses. We're going to insulate those spaces and seal around the windows well, and install the furnace. Should make for happy tenants!
Quote from @Richard F.:
Aloha,
You do not mention anything about the quality of insulation currently in place, and options to improve it. Also, how are your windows? Separate storm windows? Well sealed? 3rd story, converted attic? Is there ANY insulation up there?
If this is a long term hold, strategize to make the right kind of repairs and improvements that will pay off long term first, figure out the money part second. - Member since 2021 · 27 posts · 17 votes3yThat's exactly why I want everything in their name they'll run up the gas/electric bill! Haha, really interesting though I've never heard of the Rinaii heaters. That sounds like a great solution to your problem especially in a large multifamily building
Quote from @Alecia Loveless:
@Brandon T. I’m in NH and am getting out of the business of paying for my tenants heat. I have one building I’ve owned 3 years where the tenants regularly keep the heat on 78 and wear t-shirts and shorts and go barefoot when it’s -25 out and I bought another one this past spring that when I was doing due diligence in the winter at least 3/8 units had the heat on 78 and the windows cracked and it was -15.
I am putting in propane Rinaii heaters. There will be one for each living room and bed room and I suppose if you had dining room/other rooms they would need one too. Each tenant will have their own propane account with my fuel company and a commercial rate which is about $1.00 cheaper per gallon than rack rate. It’s much cheaper and more efficient than electric.
It’s expensive but I will recoup my cost on each building’s oil cost in 2 years not to mention the write offs which I haven’t factored in.
For 18 units for my largest building it’s going to be $40K for running gas lines, 18 heaters, placing the heaters, placing the tank, digging the trench for the line to the tank from the building and reburying it, and having the propane company out to test all the units. I’ve already used $1500 in oil in 3 weeks for heat and it hasn’t been below 45 yet. So I know the building just eats fuel.
- Member since 2019 · 34 posts · 7 votes2yCarbon monoxide though
Quote from @Alecia Loveless:
@Brandon T. I’m in NH and am getting out of the business of paying for my tenants heat. I have one building I’ve owned 3 years where the tenants regularly keep the heat on 78 and wear t-shirts and shorts and go barefoot when it’s -25 out and I bought another one this past spring that when I was doing due diligence in the winter at least 3/8 units had the heat on 78 and the windows cracked and it was -15.
I am putting in propane Rinaii heaters. There will be one for each living room and bed room and I suppose if you had dining room/other rooms they would need one too. Each tenant will have their own propane account with my fuel company and a commercial rate which is about $1.00 cheaper per gallon than rack rate. It’s much cheaper and more efficient than electric.
It’s expensive but I will recoup my cost on each building’s oil cost in 2 years not to mention the write offs which I haven’t factored in.
For 18 units for my largest building it’s going to be $40K for running gas lines, 18 heaters, placing the heaters, placing the tank, digging the trench for the line to the tank from the building and reburying it, and having the propane company out to test all the units. I’ve already used $1500 in oil in 3 weeks for heat and it hasn’t been below 45 yet. So I know the building just eats fuel.
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