Adding Separate Meters on 2-unit (Queens-NYC)

[Nima S.]

Good Afternoon - BP Nation. I have come across a situation which I am sure that others have faced before. The property I am looking at is a legal 2-family. Classified as B3-2 (NYC) which is a conversion to two family from single family. The current owners live in the duplex (second and third floor) and a tenant lives in the first floor. I guess the owners changed the certificate of occupancy to a two family but never added separate meters as they occupy the large portion of the house (duplex) and factored utilities into the rent for tenant as there are so separate meters.

Now in this situation has anyone installed separate meters for water/sewer, electric and heat. There was only one meter for electric and there was one boiler (heat furnace) and one water heater. Basically I am trying to figure out what is the cost and process involved in adding separate meters and will I also have to install separate furnace and water heaters for separate bills OR is sub-metering on the same furnace and water heater is possible. As I want to occupy the lower unit and rent out the duplex so I have more income coming into support mortgage but will not be very economical if there is no way to bill duplex tenants separately for utilities. 

Your advise will be highly appreciated.

Best-

NS

[Johann Jells]

Separate meters for the 1st fl is a more a contractor question than anything we can help with. Much depends on the size of the unit, the type and layout of the current heat, and the layout of the electric. There's too many ways to do this to even discuss it without more details. Submetering the actual heat and hot water is not something I've ever heard done. It's rare for a multifamily to have separate water meters, best to just build the expense into the rent.  If the cost to split the other is high just build those costs into the rent.  Think of it this way: the utility cost isn't what you spend, it's the amount over whatever you built into the rent. 

PS: be super sure about that CoO for 2 units. Lost of funny business out there, I got into a scuffle at a tax appeal because the county had a building as a 4U but the city had it as 3U! My 1st hint was the county changing it's count in the online records shortly before the hearing!