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Updated over 4 years ago, 08/06/2020

User Stats

42
Posts
20
Votes
Meghan Cheek
  • Rental Property Investor
20
Votes |
42
Posts

To gas utilities or not?

Meghan Cheek
  • Rental Property Investor
Posted

Hi all,

I currently house hack an upstairs/downstairs two family home, about 1650 SQ ft total with separate gas and electric meters.  It has two gas hot water tanks and one boiler (dual zone heat), so the tenants upstairs pay for their hot water but I pay for gas heat.  My plan is to move out in the next year and ideally I would like to completely separate the utilities.  The second floor hot water tank also needs replacing so I figured now would be a good time to get quotes and see what can be done (side note, I just had to pay a few hundred dollars to correctly separate the hot water as some plumbing was crossed).  I've had three plumbers take a look and the general consensus for most cost effective solution is to add a second boiler and replace the 40 gallon hot water tank for the second floor.  This comes in at about $7500 all parts/labor/tax included.  I'm wondering if it's really worth it given the large upfront cost or if I should just keep paying the gas utilities once I move out.  Since I've lived here I have a pretty good idea what the bill is like, but I worry about tenants abusing the utilities.  It sounds like a headache adding lease stipulations like setting a limit and billing for overages.  Also, it's harder to market the units because the rent price is higher due to gas being included (a lot of times people just see the sticker price and don't read further).  So, looking for opinions or if anyone has any other suggestions or solutions?  I plan to hold onto the property for the long-term. 

Thank you!

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