Heater Plans

August 4, 2010 1:03 am | Products

I want to buy a house that is currently using oil heater in Brooklyn, ny. Is it expensive to change to gas?

It is a 2 family house in Brooklyn, NY with oil heater. I am planning to rent both units out, but I don't want to be responsible for their heat and Hot Water because I cannot control how much the tenants use since I won't be living in it. Plus, I heard oil is much more expensive than gas. Also, I don't think you can meter their usage on oil. Therefore, I am planning to change the oil tank to gas so I can setup a meter for each family, so they can pay Keyspan themselves every month. I heard that converting to gas is very expensive. Could anyone provide me with some suggestions that is best for this situation? Thank you very much!

If you were living in the home I'd recommend you stick with fuel oil until the machine needs to be replaced. As you are not paying for the heat, go with gas and have the tenant pay. You might be able to write off the installation as a business expense and have it amortized. Check with your accountant on the rules.

If the current heat is forced air, conversion to two gas furnaces without A/C should not be expensive. The gas company in your area will have a list of competent installers.

If the current system is hot water heat, you will need to have ducting run, and this may be costly, depending on if the basement or attic is finished.

Would it be inappropriate to have the tenants pay for fuel oil? It can be measured with a simple dipstick. You might factor in a fuel surcharge and incorporate that into the rent. Tell the tenants that if they don't use the allocated fuel during the year, you will give them a rebate, or if they go over the allocation it will be added to the rent. Be sure to check with your legal team before doing this, however as it may not be permissible in your area.