All Forum Posts by: Chris Stranad

Looking for advice. I have a 4 unit in Lower Michigan which has 3 of the 4 units on the same hvac system. I am looking to split the utilities to tenant paid & exploring either a mini-split or baseboard system. The unit are a 600 sq ft 1 bd & a 750 2 bd for reference.

Anyone have experience with either from installation cost, to durability, effectiveness perspective? 

Appreciate the help!

@Andrew B. Yeah great, thanks. That makes your previous response clearer too & I agree. Increase on preexisting tenant would only be $25/unit if they stay & that is still well below market rents. 

@jacobsampson That’s a great question & I don’t know the answer. Longer lease term=lower vacancies, more tenant security? It is the standard practice but that doesn’t mean it’s the best for every situation.  In my experience mtm is always higher than long term lease due to the ease of exit for tenant & potential increase of work for landlord to turn the units. 

@Andrew B. Thanks for the feedback!

I wasn't sure what you meant for me to "stop right now", I currently own the property & need to get them on the property management's lease. Also, I've never heard of people aiming for the lower end of market rents. If everyone does this then you will essentially be reducing the average market rent to a lower number, then if you adjust your rent to the lower end of that new average you'll be perpetually reducing your rents. What am I missing here?

So I closed on my first multi a few months ago, a quadplex. This was the previous owners only property & he self managed. The property was fully leased far below market value so I have been expecting to update the units & raise rents as leases expire.

The one bedroom unit was on mtm for the past two years. I asked my property management co to get him on their lease asap, look to sign him for 12 month & to raise the rent by $25 which would still be under market for the unit. The tenant responded saying that the unit is "very cold" & "uninhabitable" half the day during the winter & doesn't think paying an extra $25/month is reasonable & said that when he used a space heater the previous owner gave him a discount on rent due to tenant paying higher electric bill(I would loose money each month if I did this). Currently three of the units share a furnace(main floor is one unit & two upper units. Third unit is an addition on back of house on own utilities.) which I pay for heat for those three units, they pay electric.

So my question is, how should I proceed? I am thinking of having him, per his suggestion, sign a 2 month lease at $575 & not renew at the end of July. Then I can get into the unit, update a few things(paint, flooring/carpet) INSTALL ELECTRIC BASEBOARD HEATING & raise the rent for the next tenant to somewhere between $725-$775(avg in the area is $780 for 1brm). Hopefully complete the update & get a new tenant in the unit by August/September to be on a better calendar schedule/timing. I will do the same with the other upstairs unit & this will essentially split up all the utilities to be under the tenants responsibility, cutting my cost & increasing my profit margin.

Anyone have any insight or experience with baseboard heating elements. Thanks in advance!