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Updated over 4 years ago on . Most recent reply

Account Closed
  • New to Real Estate
  • Madison, WI
16
Votes |
68
Posts

Need advice on separating utilities for a new rental property

Account Closed
  • New to Real Estate
  • Madison, WI
Posted

I just purchased a two unit rental and have been told by other landlords that it’s best to have all the utilities separate so each tenant pays their own, which I agree with. The way this property is set up is there is one gas furnace and one unit has a thermostat so they would control the heat for both units. Not only do I think that’s unsuitable for obvious reasons I also don’t like that I will have to pay for the heat and increase the rent amount to cover that. The other option I have is to install mini splits throughout the property and go fully electric. It solves the first problem but will cost me more upfront when I’m already putting a significant amount into rehabbing this property. Anyone have some wise words on this to help me make the best decision??

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Colleen F.
  • Investor
  • Narragansett, RI
4,385
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8,383
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Colleen F.
  • Investor
  • Narragansett, RI
Replied

You have a couple of options, since you said gas furnace I am assuming force air. If your furnace is okay you could price separating out the gas or leave one with gas and one with minisplits or just install a second gas furnace.   I would not recommend baseboard resistance as a sole source of heat as minisplits are cheaper to run although baseboard is cheaper to install. What you have to do is get a good HVAC guy in there for proposals. Is AC going to be considered essential in WI?  What does the competition have? It all depends on your setup and current duct work. 

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