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13
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Mark Ross
  • Rental Property Investor
  • Falmouth, MA
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13
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Replacing heating system

Mark Ross
  • Rental Property Investor
  • Falmouth, MA
Posted

Hi all,

Replacing a 20+ yr old OIL heating system with a GAS system. Current section 8 tenants pay $2100 rent...plus utilities.

My first question is do I pick a good, better, best system that costs from less to more $$ and do I justify the more expensive energy efficient system to grab a little higher rents since tenants will save money. Or am I fooling myself?

My second question is do I get a more energy efficient and raise rents but now include heat in their monthly rent?

Thanks in advance

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Colleen F.
  • Investor
  • Narragansett, RI
4,606
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8,809
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Colleen F.
  • Investor
  • Narragansett, RI
Replied

@Mark Ross  don't include heat in rent on an ongoing basis.  I would go middle of the road on efficiency if the tenants pay heat.  There is a huge gain probably in a more efficient gas system then oil so they are already getting some cost savings.  You can evaluate the additional cost and payback time as if you were paying for heat to get a handle on it but the jump to most efficient is probably not worth it in your situation.