Managing operating expenses

[Joe Rodriguez]

Hello folks. I'm new to BP and I'm currently researching the purchase and rehab of my first multy-family property. I was discussing offsetting utility expenses with a friend tonight, and he suggested that I consider installing electric baseboard heating in each of my rental units in addition to individual meter service and electric tankless heat on demand hot water service. My opinion is that while putting the tenant on the hook for their own utilities (above the tradition gas & electric) relieves me of this category expense, the baseboard heating and hot water service will scare off prospects and create longer vacancy periods. I belive would essentially have to offer rent below market rent rates to compensate for the more expensive utilities. Lastly, I live in Orange County NY where this is not customary to renters. What are your opinions?