Rehab- Splitting Utilities & Adding Central AC

[Darren Bloomfield]

I am fortunate to be in a position with my current house hack where I am able to put on my tenant hat and think about what improvements would make my two units appeal to a larger tenant pool at a higher rent rate when the time comes to move out.

A project i have been thinking about is adding central AC and splitting out the heat/ gas bill. 

My current set up:

(1) Furnace (in unfinished basement) with shared duct work to both units 

(1) Water heater in basement used for both units

(2) separate electrical boxes for each unit

Heat/ gas bill shared 

Separate Cooking oil/ stove bill for 2nd floor

No AC

The thermostat / temperature control is only in the 1st unit so all the 2nd floor can do is open/ close its duct work

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Seems like I have three options that i can think of. All varying levels of upfront cost

(1) - Add furnace/ tankless water heater to 2nd floor. Duct work running through out the unit. Put in AC for this unit. Cap ducts leading the the 2nd floor from basement furnace

Add separate AC for first unit

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(2) Add around three duckless mini-splits (Heat & AC) to the 2nd floor (maybe do the water heater or just leave it shared) 

Add AC to first floor. Cap ducts to 2nd floor

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(3) Add AC to existing furnace in basement which would cool both units

     Now I'd have to figure out how to charge for the electrical bills now as the AC would hook up to one electrical box but be used by both units. 

Still does not solve the temperature control issue

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I know that some landlords do a utility fee monthly separate from the rent. My current tenants on the first floor did not want to do a set fee each month so they are paying me 2/3's of the shared gas/heat bill each month via venmo

I think this venmo process would be come more difficult once I was not living in the property/ scaled to the point where I was using a PM. 

I have meet with a few HVAC Contractors and am gathering information/ bids.

I want to raise my properties value and the market rent with the most efficiency of cost to do so. i also want to reduce/ eliminate potiental headaches in the future/ make my system easy for a property manager to follow when that time comes.

What are your tips?