Re: Buying units with electric heating… Dumb? - Posted by Jim Locker
Posted by Jim Locker on December 23, 2000 at 16:40:05:
I have a few dozen units with electric heat. I have not found it to be a problem with renting.
One complex of mine (18 units…a Cardinal community) was sucking up the tenant’s paychecks - and snow was continually melting off the roofs. I dropped about $2,500 into 8 1/2 inches of new blown in insulation in the attics, which nicely dropped the tenant’s electric bill and made everyone happy…not to mention that they were able to stay warm after that.
There is also a bit of salesmanship involved. Where I have baseboard electric heat, I point out how they have the opportunity to be efficient by turning up or down the heaters in various rooms depending on time of day and which rooms are being used.
I also always point out that electric heat, when it malfunctions, won’t kill them the way a gas furnace can.
Of course, when in one of my gas heated units, I point out how much less gas costs. But then, this winter, gas is shooting up in price so maybe the difference isn’t so great right now.
Basically, it has been my experience that there is little difference in rentability betwen gas and electric units.