How to split/control heating cost on old triplex boiler

Question

I am in the process of buying a double brick triplex built in early 1900's (southern Virginia/historic district), 1650 square feet 2 bed/1 bath units stacked on top of each other. The whole house is heated by a boiler with radiators throughout the home, with the thermostat currently in the basement. No air conditioning installed, 1 window AC unit in each of the units.

Currently the heating(gas) bills can go as high as $800 in the coldest months and as low as $30 (tankless water heater) in the summer months with single pane lead glass. Tenants will have the windows open in December because it is so hot in the building! The current owner pays the gas/water bills, and is losing money on the property.

I plan on living in the building for 2-5 years. My question is, is how can I lower the heating cost(make the tenants pay) and let the tenants individually control the heat between units? Part of my VA renovation loan/purchase is to have storm windows installed to maintain the lead glass and appease the historic district.

Thank you all in advance for the advice.

Jaysen Medhurst · Answer

@Paul Kuhn, check out mini-splits. They will also provide A/C in the Summer, which I think will be a huge incentive for tenants. You'll have to check the Historic Commission, but placing the outside units in the back of the property should be okay.

Johann Jells · Answer

The windows will help. Assuming you have steam, there's something called a TRV, Thermostatic Radiator Valve, that controls the heat in individual rooms. Some have remote thermostats, others are on the valve.

I bought an oil fired steam heated 4U that the owner claimed was burning $12k/yr. After changing to gas, controlling the thermstat, and tuning the rads it's under $2k.  The tenants were used to it being 80 all winter! Shortly after the new boiler, one complained it was cold.  I came up there to her apartment, it was 70 deg and she was wearing shorts and a tank top. I suggested she put on some clothes and she responded "That's Bullsh*t!"  That S-8 'professional tenant' realized the party was over and left.

https://www.supplyhouse.com/Danfoss-Thermostatic-R...

Mike McCarthy · Answer

I just removed an old hot water boiler in a triplex and installed 3 separate mini split systems.

I can now charge more rent for AC and the tenants pay the electric for heat and AC!

It’ll take 2-3 years for payback on my end, but well worthwhile.

Mike McCarthy · Answer

@Paul Kuhn the price seems on the higher end, but still reasonable. I had one 4-head system installed in an apartment for about $8200, then midway through the summer, it leaked through a bad fitting... proves that cheaper installation isn’t always better. Had a second system installed in the neighboring apartment for I think about $12K

For me, it was worth it. The tenants now pay for heat and AC. I raised the rent about $200/mo with a changeover in tenants. Plus, I don’t have to repair/replace the boiler which was having its own set of issues.

They aren’t cheap, but they work really well!

Paul Kuhn · Answer

So I am now in the location of my rental, waiting to move in "knob and tube rewiring"...

I received 2 estimates in the southeastern virginia area for 4 zone mini-split system.

One was $14,399 per unit or $43,197 for all 3. Forget the company, not mitsibishi

The other was $47,598 for all 3, or $15,866 per unit. Daikan 12yr manufacturing warranty.

My question is it worth spending that much money to install Mini-splits? Currently the units are 1700sq ft, renting for 1000-1100/unit, as a 2 bed 1 bath apartment. Currently renovating them to 3 bed 2 bath, and can hopefully get 1500-1600/unit due to their size. I feel like I need air conditioning to compete with the new apartment complexes built in the area, though my triplex is located in the historic district, which has its appeal and is much larger per unit.

Thoughts? As I can turn off the boiler then with the mini splits acting as heaters too.

Kelly N. · Answer

We have one place with separate furnaces for each apartment but only one gas meter.  The previous landlord put in thermostats (Landlordstat) that limit the temperature, and they have worked well for us too.  In the one unit that didn't have the "Landlordstat" installed, the girls were keeping it set to 90 and running around in shorts all winter until I put in the $70 thermostat.  My bill for the next month went down considerably despite the month being considerably colder!

Johann Jells · Answer

How large are the units, what's their current draw, and what are the electric bills? I have several 500 ft units heated by baseboard via their gas hot water tank. A 2 head mini split is one of the few alternatives that make any sense.

Paul Kuhn · Answer

What was the cost for the mini split systems and how many zones? The units in the building are 1650 sq feet, was thinking about 4 zones per unit. Thanks Mike!

Dennis M. · Answer

@Johann Jells

Kudos to you for setting that tenant straight

Paul Kuhn · Answer

sorry for the long delay in reply! I am 3hrs away from property and in school currently too, so have been busy. From my understanding of the steam vs hot water radiators, I believe it is hot water system.

Thanks for the replies, just trying to maximize rent while reducing cost. I believe we are all working towards being financially free through our rentals, while at the same time, not trying to be slum lords.

How to split/control heating cost on old triplex boiler

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