Rental Property Investor · Boston, MA · Member since 2018 · 8 posts · 1 vote
Landlords, do you find it to be more difficult to find tenants if your property has oil heating?
Tenants, is that a turn off for you when looking for a rental property?
In the Boston area. Thanks!
Investor · Warwick, RI · Member since 2015 · 137 posts · 100 votes
7y
I do. The last 2 SFH I bought, I spent $2500 to convert them to natural gas. Every time I show a house, and they see an oil tank I get " OOoooooohh oil heat, that's gonna be expensive"
Investor · Warwick, RI · Member since 2015 · 137 posts · 100 votes
7y
I do. The last 2 SFH I bought, I spent $2500 to convert them to natural gas. Every time I show a house, and they see an oil tank I get " OOoooooohh oil heat, that's gonna be expensive"
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Alan F. Heat pumps/mini-splits are better than gas, which is better than oil, which is better than electric baseboards.
However, with the high demand for housing in the Boston market, you'll always find a tenant, so I'd do a careful cost/benefit analysis before pulling the trigger on a gas conversion.
Investor · Hopkinton, MA · Member since 2013 · 18 posts · 23 votes
7y
@Charlie MacPherson One thing to point out though, especially up here in MA, is that heat pump efficiency gets a lot worse when the temps are well below freezing. They are great for moderate weather, but I would take gas any day if it is one or the other. When I was both renting and buying I actively sought out properties with gas.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
People rent oil properties. If you can get gas it is better but many areas don't have gas. Gas is better mostly because it tends to be cheaper and from the landlord end you can get notified of a gas company shut off and when the tenant doesn't fill the oil tank you just get an unwelcome surprise. Oil tanks can also leak and require clean up which can get pricey.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
7y
We have an old Mansion that's still on Oil as NG is still 'not yet at the road' (but they're working on it). We have never had an issue renting it for high rents & its a BIG home 6beds/5baths so I'm sure it's expensive to heat. When the NG lines are finally at the road I'm sure the homes value will increase.
We just quoted some work on an unfinished rural new build ($277k) that is on oil for heat & hot water BUT has a propane cooktop??? The buyers didn't blink.
I would definitely swap out the oil if NG is available. We have a couple of rentals on electric heat & last winter was expensive for the tenants.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
@Pat L. people like to cook on gas but it is not the same having propane vs natural gas. Propane burns hotter so you can't get a nice low simmer of gas.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
The downfall of heating oil is the tenant has to pay up front for delivery . 100 gallons of oil is about $300 , typical tank size 275 gallons . I have 1 house with oil , but the tenant drives an oil truck , so there is no problem . But when the tenant runs out of oil the system has to be bled , usually thats a service call . They dont watch the oil level and run out , then they dont have the money for oil .
@Pat L. people like to cook on gas but it is not the same having propane vs natural gas. Propane burns hotter so you can't get a nice low simmer of gas.
I hate the dangers of propane so I went ALL electric at our Lake house. I put in a new 36inch Seimens (now Bosch) Induction cooktop. It's amazing, water boils in seconds, handles stay cook & cleanup is a breeze, just throw the paper towels away :)
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
@Pat L. I love my induction cooktop! and you can get a fast boil and low simmer, it is so much better then regular electric. I am with you on the propane, it isn't the same as having natural gas and for safety I would choose oil heat over propane any day.
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
I have one rental with oil. I have the auto-fill agreement with the local oil company. I pay for it and came up with a monthly cost that’s added to their lease that approximates the cost ($50 in Oct, $150 Nov, $250 Dec, etc.)
Then at the end of the season, we settle up based on actual cost. This past winter, they owed me $78.
I also give them a $300 ‘subsidy’ since oil heat can be more expensive (and the house isn’t well insulated, but I don’t say that). The $300/yr is cheaper than removing the oil system and upgrading to NG.
I don’t think tenants care much, at least when they are looking. They are looking at rooms, kitchen, bath, etc. The $300 subsidy helps keep them year to year and not look for somewhere cheaper just because of the oil heat.