Convert gas appliances to electric for rental?

General Landlording & Rental Properties
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Convert gas appliances to electric for rental?

Bienes Raices
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes

I haven't made an offer yet, but the house has a gas water heater and dryer (don't know about the range). Is it expensive to convert these to electric? (not in terms of getting new appliances, but in terms of adding new receptacles for them). Would it be better just to leave them as is?

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Mitch Kronowit
SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
14y

A lot depends on the region. If I remember correctly, most of Florida (at least the panhandle) is geared towards electric appliances. Therefore, that's what your tenants are more likely to already own and may pass on your rental if they can't use their own dryer. In California, natural gas is the norm and electric dryers are as rare as an honest politician. As far as the stove and water heater, those are usually included with the premises, so I wouldn't expect my tenants to have their own in the U-Haul. But since gas appliances are more readily available in my area, they're typically cheaper and easier to find deals on. Bottom line? Make your rental easy for somebody to move into.

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  • Ed O.
    Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
    14y

    I am a fan of swapping out the stove and dryer from gas to electric. Wire is the most expensive cost. For the best savings, buy it in bulk rolls of 125 or 250 feet (if you're going to be doing more work like this). If you buy it by the foot, it gets expensive quickly. Make sure the box can handle the extra breakers and load.
    I like to change them out for 2 reasons:
    Ease of changing appliances and reduced chance of a gas leak. I have had a lot of problems with gas leaks in the past and as a result, have removed the old fuel runs as well in an effort to limit the problem. I'm sure some people like to keep it as it is.

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  • Dick M.
    Electrical Contractor · both, Maine & Florida · Member since 2011 · 129 posts · 53 votes
    14y

    I'm an electrician and I wouldn't switch. Gas will be cheaper for whoever is paying the utilities. Why spend money to makes things more expensive?? Except if they supply their own dryer, I go electric there...

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  • James H.
    Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    I leave gas as is. A lot of people like to swap,though. The philosophy, and some people's experience I've read on this forum, is that it is more hazardous - that tenants are too stupid to use the appliances with open flame. If it were that dangerous, manufacturers would stop making them - that's my philosophy. Plus I try to screen my tenants. I think as long as you have electric ignition on the operating appliances it is not a big deal. I would replace anything with a pilot light that the tenant would operate (replace it with a modern GAS appliance).

    I think the highest cost of converting to electric would be paying a licensed electrician to do it. If you were worried about safety and liability, why would you do it without a license and a permit? There are a LOT of low income neighborhoods supplied with gas where I live, yet when you hear about house fires on the news, ironically they are usually due to an electrical failure.

    Gas is a lot cheaper than electric where I live and I find that people know how to use the appliances and prefer to have gas if if it's available. I'd rather my tenants save money on their utility bills so they can afford to pay me rent. But you do hear about the gas explosions, too!

    Both gas and electric appliances are a-plenty new and used where I live also, so selection is not an issue.

    You will find that more people on this forum like to replace gas with electric if possible - especially the low income landlords. I consider it as a risk/benefit, cost/benefit ratio and it just doesn't make a lot of sense to me to replace gas with electric if a house is already equipped with gas.

    3Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    As long as the dryer and water heater are in good shape, leave them. The dryer probably doesn't have a pilot, it will likely have electric ignition. Water heaters usually have a pilot, but that is only trouble if they store combustibles nearby. If you have to replace either of them with electric, you might need to upgrade your electric service to handle the extra load - in other words, it might not just be breakers, but the wire coming into the house.

    I do agree that if installing a new dryer hook-up, that it should be electric; but once it's there, why spend extra money if it is serviceable.

    2Reply
  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    I make my apartments all electric in my low to mid income properties... One of the first questions I'm asked by potential tenants is if it's all electric... Gas may be a cheaper source of energy, but if it's all electric, they only have to budget for that one bill, so they feel it's cheaper and easier... Not saying that's the case in reality... But sometimes to get a tenant, one must think like a tenant. :) also, having no gas is one less utility deposit which makes your property more accessible and easier to rent.

    2Reply
  • James H.
    Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    Bryan, good points about simplicity and deposits. I never thought about that. You buy apartment buildings as well as SFRs. Would you convert an entire, say, 24 unit complex? Do apartments come equipped with electric only customarily, or do some have gas?

    0Reply
  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    14y

    A lot depends on the region. If I remember correctly, most of Florida (at least the panhandle) is geared towards electric appliances. Therefore, that's what your tenants are more likely to already own and may pass on your rental if they can't use their own dryer. In California, natural gas is the norm and electric dryers are as rare as an honest politician. As far as the stove and water heater, those are usually included with the premises, so I wouldn't expect my tenants to have their own in the U-Haul. But since gas appliances are more readily available in my area, they're typically cheaper and easier to find deals on. Bottom line? Make your rental easy for somebody to move into.

    4Reply
  • Douglas Peterson
    Investor · Cary, NC · Member since 2010 · 74 posts · 9 votes
    14y

    I would leave them alone. I can't see how you will recover your costs by increased rent or renting the unit faster. Unless you can clearly show an increased rent, faster turnaround, or increased safety, don't change them.

    1Reply
  • Bienes Raices
    OP
    Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    14y
    Originally posted by Mitch Kronowit:
    A lot depends on the region. If I remember correctly, most of Florida (at least the panhandle) is geared towards electric appliances.

    That's what I was concerned about--you rarely see houses on gas here. I could buy a gas dryer and provide it with the house, but then the tenants would have to sell their existing dryer or store it somewhere.

    0Reply
  • Bob Hines
    Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
    14y

    I always get asked if there is just electric or gas an electric utilities-tenants want to know and prefer one bill. A friend who has more properties than I and places tenants for others will charge about $25 more per month on rent for an all electric unit because of the demand.

    In St. Louis, gas is very prevalent but there is a $20/month charge just to have the gas on even if you don't use any actual gas that month. They have also recently changed their inspection process and have been sticklers on having new flue liners installed. These usually cost around $400 to install so some are using that cost as an excuse to make the switch to electric.

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  • Bienes Raices
    OP
    Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    14y

    Thanks for the replies. As it turns out, I decided not to make an offer on that house due to other issues.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Interesting topic.

    In my units it's gas but it's common for my area except the dryer is electric.

    I have some tenants that love electric and others love gas and hate electric.

    It will be based on their past individual experiences dealing with utility companies on how they feel one way or another and what they grew up using.

    So I just go with what's common for the area.

    I do agree with low income tenants that have wild fluctuations in income that they will try some risky things to get by sometimes.

    Higher income tenants do not tend to think of doing such things as much is my experience.

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    0Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    14y

    As was stated earlier. Make your unit comply with what is expected in your market.

    In SoCal - gas seems to be in favor.

    0Reply
  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    brian, i would and have converted all my apartments..i believe it is one of the main reasons i stay fully occupied in my apartments...

    0Reply
  • Jason S.
    Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
    14y
    Originally posted by Bryan A.:
    brian, i would and have converted all my apartments..i believe it is one of the main reasons i stay fully occupied in my apartments...

    To all electric? Is that the preference in your area? I am doing some business in NC and am trying to research the various markets out there.

    0Reply
  • Account Closed
    Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
    14y

    this is my preference..i have a small sample set, so i can't speak for all apartments in north carolina, but i believe it has helped keep me 100% occupant...if you have any other questions about nc, feel free to private message me..thanks

    0Reply
  • Greg B.
    Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
    14y

    I was asked one time if my vacant unit for rent was all electric or had gas. I replied this one has gas. The caller was a blind person and did not want any open flames in the rental. Different perspective.

    1Reply
  • Don Chambers
    Investor · Warner Robins, GA · Member since 2011 · 83 posts · 15 votes
    14y

    I find that a lot of tenants prefer all-electric and they think it is cheaper. However, my research shows that gas is actually cheaper. I think a lot of tenants think they are paying more because they have an extra bill.
    It is costly to switch so it depended on what other work you are doing. If you have working gas appliances I think you should keep them. But if you have to replace the appliances anyway, and you are rewiring the house, it may be good to replace go all electric.

    I hate gas here because the city runs the gas company and they are a pain to deal with. It is very difficult just to get the gas turned on.

    0Reply
  • Bienes Raices
    OP
    Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    14y
    Originally posted by Don Chambers:
    But if you have to replace the appliances anyway, and you are rewiring the house, it may be good to replace go all electric.

    By "rewiring the house", do you just mean adding some 220 volt receptacles for the electric dryer and the range? (not sure what the water heater needs). Approximately how much would that cost?

    0Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    14y

    I wanted to run an electric line for a plug in the kitchen in case i ever wanted to switch to electric. But it was going to be over $300 so I blew it off. 30 feet of wire and the electrician and breaker.

    0Reply
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