How Deal with Tenant Possibly using Stove to Heat Unit (Indiana)

[Tricia O'Brien]

I recently evaluated a 100 year old triplex in Indiana where the landlord pays gas, water, trash but electric is individually metered (and each unit has electric heat).  The units all have a gas stove/oven and share one gas water heater.   Inspection of the rent rolls for 1 year showed the gas bill was typically $15-$20 per month. However, in Dec to March it jumped to $45 to $135 per month, and in March it was $435. When I asked the property manager about the spike in gas bill, he said he thought the people in the 2 bdrm unit were probably using the gas stove to help heat the unit.  I have not made an offer on this place because i was concerned about this situation... both the safety hazard and the increased cost to owner. What's the best long term solution for this type of problem?  Is it worth owning a place like that for 5-10 years if you can get it resolved in one winter? I understand this is a fairly common problem in low end units in the Midwest...because electric heat is more costly than gas but some tenants don't know that or budget for that at move in. Any replies would be appreciated!

[Mike Day]

Or take out the gas stove and put in an electric one. Or redo the lease when it comes up so that tenants pay utilities. I'd assume it's going to be this way year after year unless you take some action.