Electric Baseboards of Forced Air

[Joe Schaak]

Advice needed : I have an older duplex in Minnesota that has had all the radiators removed. The old boilers are shot as well. I’m putting in a heating system from scratch.

Electric heat is the least expensive to install. Does electric heat make the property less valuable upon resale? More importantly, does it make it less attractive as a rental? This property will be a Class C property.

[John Warren]

@Joe Schaak I have a four unit in Lyons, IL with electric baseboard, and it has been far and away my easiest and most profitable investment. It is in a quiet, B class area, and the tenants have not every complained. Best of all, I have never had a service call on the electric base board. The same cannot be said for my forced air and boiler heated buildings in the area. 

I also have a 20 unit in a C- area, and we have electric baseboard there as well. The tenants have mentioned it being expensive a few times, although this particular group of tenants keeps the heat in the 80's and 90's, so I don't feel too bad for them. Again, the baseboard heaters have had minimal issues. A few of the units have needed to be replaced due to tenant damage, and they are very cheap to replace. I think they run $50-75 each at home depot plus a bit of labor to have the handyman install them. 

I would think long and hard before you drop 5-7k per unit in a C class area installing forced air. Just throw the baseboard heaters in and be done with it.