Heating Utility: Divide or not divide?

[Rick C.]

Hello,

I recently acquired a triplex rental property in Philadelphia, PA. The electric is already separated. However, the gas and water are not.

The tenants pay for their own electric usage. The landlord pays for the gas and water. The heat is a gas boiler with a landlord thermostat (does not go above 71 degrees). The building is only one zone. The landlord usually spends about $2k a year for the heating bill. There is no central air in the building.

I have met with an HVAC professional and he suggested that I install ductless units for each apartment, each of which would then become a separate zone. He quoted $21k for this.

Although I think that is a lot of money to spend on this, it would accomplish: 1) getting the tenants paying their own heat/ac via their electric bill and 2) giving the entire building central air.

My question is, would I be better off using that $21k for other real estate endeavors or do you think there would be notable value added in taking on this project?

Thanks,

Rick