Separate Metering

[nepoez]

Hi all,

I recently hired Libertas to help with managing a suited property that we used to managed ourselves since they did a good job with my other town houses. However, they have a policy that if there is no separate meter they will include utils in rent. That is not desirable as I don`t know how much to charge and if the rent will be enough to cover utils, but I understand why they have that policy due to disputes and such.

I wonder if anyone here has experience with implementing separate meters and how much it cost you?

Also, how much do you think in the mean time we should charge extra to handle the utils the tenants will be using?

Thanks again!

Nepoez

 

[RandyDalton]

QUOTE (nepoez @ Jun 17 2009, 07:54 PM) Hi all,

I recently hired Libertas to help with managing a suited property that we used to managed ourselves since they did a good job with my other town houses. However, they have a policy that if there is no separate meter they will include utils in rent. That is not desirable as I don`t know how much to charge and if the rent will be enough to cover utils, but I understand why they have that policy due to disputes and such.

I wonder if anyone here has experience with implementing separate meters and how much it cost you?

Also, how much do you think in the mean time we should charge extra to handle the utils the tenants will be using?

Thanks again!

Nepoez

Hi Nepoez,

Cost of separate meters is driven mostly by the existing wiring in your property. I assume you are talking about a duplex/triplex type scenario where multi-family units was an after-thought during construction?

In this scenario remember that many wires leave your electrical panel. However each wire leaves the panel, travels throughout the house and feeds many electrical requirements such as fans, lights, receptacles, etc. As such if a wire leaves the panel and feeds the basement let say. The next wire leaves the panel and feeds the main floor. A third leaves the panel and feeds the second floor, etc. You can see that this is very easy to move the main floor wire to a separate panel and bring in a separate meter. Same with the third wire and so on. Now obviously you are going to have more than one wire per floor but if each of the wires is specific to feeding a specific floor or unit then the cost of separate meters is pretty low. Probably 1-2K.

The problem is caused by buildings that are not initially built for the purpose of multiple units. As such one wire will go off to the north end of the home and feed two floors. A second wire will go off to the south end of the home and feed three floors. A third wire will feed part of the main floor and outside lighting, garage, etc. You get the picture. In this scenario the costs of separate meters are considerable becuase you need to rerun much of your wiring which is behind walls, in ceilings, etc.

Best is to turn off a few breakers and see what happens. Chances are this will affect more than one unit. If you are lucky and all your individual wiring feeds one particular unit and there is enough loose cable at the panel to install and run the wiring to other panels then you will probably get away with $1,000-$2,000. If not you will then have to get a contractor in to provide pricing as it will very much depend on .

In regards to gas heat this can also be very costly. Remember you have to redo ductwork, install multiple furnaces and water heaters, etc. Alternatively you can go with electic heat for some units and/or gas fireplaces, etc.

Regards...Randy D.
R&B Properties

 

[nepoez]

Hi Randy,

Thanks so much for the detailed answer. Hm this is very bad news for me. Seems that my only viable option is to increase the rent to the point that it covers an expected cost for heat and utils. However, that will bring my rent to a very unattractive level such as 1600+ for up, and 1350 for down.. not likely to get it rented out.

hm...

QUOTE (RandyDalton @ Jun 18 2009, 06:39 AM) Hi Nepoez,

Cost of separate meters is driven mostly by the existing wiring in your property. I assume you are talking about a duplex/triplex type scenario where multi-family units was an after-thought during construction?

In this scenario remember that many wires leave your electrical panel. However each wire leaves the panel, travels throughout the house and feeds many electrical requirements such as fans, lights, receptacles, etc. As such if a wire leaves the panel and feeds the basement let say. The next wire leaves the panel and feeds the main floor. A third leaves the panel and feeds the second floor, etc. You can see that this is very easy to move the main floor wire to a separate panel and bring in a separate meter. Same with the third wire and so on. Now obviously you are going to have more than one wire per floor but if each of the wires is specific to feeding a specific floor or unit then the cost of separate meters is pretty low. Probably 1-2K.

The problem is caused by buildings that are not initially built for the purpose of multiple units. As such one wire will go off to the north end of the home and feed two floors. A second wire will go off to the south end of the home and feed three floors. A third wire will feed part of the main floor and outside lighting, garage, etc. You get the picture. In this scenario the costs of separate meters are considerable becuase you need to rerun much of your wiring which is behind walls, in ceilings, etc.

Best is to turn off a few breakers and see what happens. Chances are this will affect more than one unit. If you are lucky and all your individual wiring feeds one particular unit and there is enough loose cable at the panel to install and run the wiring to other panels then you will probably get away with $1,000-$2,000. If not you will then have to get a contractor in to provide pricing as it will very much depend on .

In regards to gas heat this can also be very costly. Remember you have to redo ductwork, install multiple furnaces and water heaters, etc. Alternatively you can go with electic heat for some units and/or gas fireplaces, etc.

Regards...Randy D.
R&B Properties

 

[koop]

Could you raise the rent higher then expected cost, then just credit the extra rent back to the tenant after the bill is payed? At least until you know what to charge, which would be a year, then you would know what the budget would be. It would also give the tenants incentive to save energy.

 

[nepoez]

Unfortunately we don`t have separate meter so at the end of the month we don`t know who to credit, upstairs or downstairs? If we could identify that, then we could have had the tenants pay utils to begin with.



QUOTE (koop @ Jun 18 2009, 09:04 AM) Could you raise the rent higher then expected cost, then just credit the extra rent back to the tenant after the bill is payed? At least until you know what to charge, which would be a year, then you would know what the budget would be. It would also give the tenants incentive to save energy.

 

[nav1940]

hi
I priced one it was $200.00 from union gas for the meter and plus what it cost to sperate it in side. and if you have to add a gas heater or furance.