I know electric heating is pricey & unattractive...? BUt is it all right if P&L looks good & it`s a triplex/duplex where tenants pay their own util. & there`s separate meters? Or are they unattractive even for tenants?? I`m eyeing a fully tenanted place but for future tenants am considering this issue.
Electric baseboard ok for triplex?
- Thread starter donksky
- Start date
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- Aug 31, 2007
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- 493
hi Donna,
whether or not it will deter future tenants depends on other factors.
The big one being rent, if the rent is discounted to reflect the difference then it should be okay.
if you can show electric bills from previous tenants and show that your rents are lower than market for the area to make up for the difference in cost to them, then you should be okay. That being said, paying for electric heat can still be a deterrant to many people because of the unknown of changes to hydro costs. Rent increases are capped, but utilites are not, so the apts need to be a little extra appealing to make it worth their while to take the risk, that can be either in actual rent price, nicer apt, or location.
Location is just as important in renting as it is in buying. If the property is in a high demand location tenants will overlook a lot of other things.
The other thing you can explain to them to promote the electric baseboards is the fact that they can control the heat. Forced air can sometimes be a real problem in houses that have been converted into apts. One apt is too hot, the other too cold.
When I advertise apts for rent that aren`t all inclusive, I usually advertise it at the total cost they would pay including utilities(approximating of course). I know this sounds crazy, most people would want to advertise it at the lowest possible price and then in small print "plus utilites". I think that just attracts people that are looking for cheap rent. I advertise at the total cost, and when they come to see the place, I explain the breakdown in costs, that way the only people that show up are the ones that can afford it.
Hope that helps,
Terri
whether or not it will deter future tenants depends on other factors.
The big one being rent, if the rent is discounted to reflect the difference then it should be okay.
if you can show electric bills from previous tenants and show that your rents are lower than market for the area to make up for the difference in cost to them, then you should be okay. That being said, paying for electric heat can still be a deterrant to many people because of the unknown of changes to hydro costs. Rent increases are capped, but utilites are not, so the apts need to be a little extra appealing to make it worth their while to take the risk, that can be either in actual rent price, nicer apt, or location.
Location is just as important in renting as it is in buying. If the property is in a high demand location tenants will overlook a lot of other things.
The other thing you can explain to them to promote the electric baseboards is the fact that they can control the heat. Forced air can sometimes be a real problem in houses that have been converted into apts. One apt is too hot, the other too cold.
When I advertise apts for rent that aren`t all inclusive, I usually advertise it at the total cost they would pay including utilities(approximating of course). I know this sounds crazy, most people would want to advertise it at the lowest possible price and then in small print "plus utilites". I think that just attracts people that are looking for cheap rent. I advertise at the total cost, and when they come to see the place, I explain the breakdown in costs, that way the only people that show up are the ones that can afford it.
Hope that helps,
Terri
QUOTE (donksky @ Apr 25 2008, 10:01 AM) I know electric heating is pricey & unattractive...? BUt is it all right if P&L looks good & it`s a triplex/duplex where tenants pay their own util. & there`s separate meters? Or are they unattractive even for tenants?? I`m eyeing a fully tenanted place but for future tenants am considering this issue.
In my experience, tenants definitely consider the type of heating when they`re paying the utilities. I had an apartment listed for rent + hydro. At least half the people who enquired asked what type of heat before asking anything else about the unit.
If you find yourself marketing these apartments, be sure to tell prospective tenants about any positives relating to the electric heat. For instance, are the windows new/recent, low-e high-efficient? Can you replace/upgrade the weather stripping? Or put in programmable thermostats? If there`s anything you can do or say to mitigate the heating costs, make it part of your spiel.
In my experience, tenants definitely consider the type of heating when they`re paying the utilities. I had an apartment listed for rent + hydro. At least half the people who enquired asked what type of heat before asking anything else about the unit.
If you find yourself marketing these apartments, be sure to tell prospective tenants about any positives relating to the electric heat. For instance, are the windows new/recent, low-e high-efficient? Can you replace/upgrade the weather stripping? Or put in programmable thermostats? If there`s anything you can do or say to mitigate the heating costs, make it part of your spiel.
I
IanSzabo
Guest
Guest
I own a Duplex with electric heat, I had a $1200 Hydro bill in Feb very scary. In the fall I will be replaceing the baseboard heat with a gas furnace. Here are my thoughts, I find it is harder to rent because of the high costs. In my experance it is about money management, & the rent has to reflect the unknown bill. The cost to install a furnace is 5k -11K if there is gas inside. I would say gas is the way to go. Thanks Ian