Hi - I am new to the forum and a beginner as a real estate investor. I'm pursuing my first deal and I'm about to close a SFH and reconvert it as a duplex.
The house has a detached garage (which I can rent as storage for one of the tenants or to a third person). It also has a laundry room that will be shared by both tenants.
My plan is pushing the cost of utilities to the tenants (gas and hydro) and I will pay for water.
The house currently has one furnace and one hydro meter. After reviewing several options I have these scenarios:
1- splitting the hydro in two separate meters. Tenants will cover for hydro and I will pay gas for heating.
2- splitting hydro in two separate meters, installing electrical baseboards for the heating of one of the units and isolating the furnace ducting to heat the other unit. Tenants then will pay for their hydro and gas.
3- splitting the hydro meters and installing a second furnace with the corresponding ductwork. (Not to excited on doing this one). Also tenants will pay for their utilities consumption.
I also would like to measure the electrical usage of the garage and the laundry room to be able to bill separately to the users.
Anybody has had a similar experience? What was the approach you took? What lessons learned you can share after doing this type of renovation? How much splitting the utilities will increase the value of the property?
Initially I was thinking on doing option #2 since I wouldn’t have to deal with the utilities myself, but after reading some posts in this forum now option #1 plus increasing rents a bit more seems like a good choice.
I would like to read your comments.
JB
