Cheapest Way To Separate Heat In Duplex?
Just wanted some opinions. I have a duplex that previously the owner paid the gas heat before we bought it which was over 200.00 per month (causing negative cash flow). I was thinking of dividing the heat with having the lower unit use the gas furnace and the upper unit placing baseboard electric heaters. I got a quote for installation and all of the heaters and with material and labor the cost will be approximately 2300.00. Does this look about the cheapest way to do it or is there any other ideas that anyone has. I do not want to have to deal with trying to get the money from the tenants either, so that is why I want to have each heating bill in the tenants name.
The bid also includes a new breaker box, taking out of the old baseboard hot water heaters. So I guess it is a lot of work but wonder if I should get another estimate. Thanks.
Actually seems like a good price to me, for the work quoted.
Will your rent have to be lowered to offset the larger expense to the tenant of electric heat, though?
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Actually I have decided to go with a second boiler. It is going to cost us approximately only 800.00 more dollars to put in this hot water boiler which will be a lot cheaper for heating costs. No I do not plan on lowering their rent as the rent is at the right amount even if they have to pay for utilities.
Good move on the boiler.
Gas hot water heat will be MUCH more marketable to prospects than extremely expensive electric resistance heat, IMO.
There are utility costs and there are utility costs. I would rather retain a good tenant who appreciates reasonable heating bills long-term than have constant turnover due to high electric bills.
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Congratulations on your new investment!
The law relating to removing the contents of tennant abandoned property is in the Texas Property Code Title 5 Chapter 54.
As a Texas landlord you also need to be familiar with Texas Property Code Title 8 Chapters 91 & 92.
Good luck!
Around here most charge one months rent for security deposit.
Typically I require the person that is making the payments the primary person to check credit. When you say several adults, you mean several people that are unmarried? I would put them all on the lease personally.
Ray,
So you charge an application fee for EACH adult who applies and then run a criminal check, background check, credit check, previous landlord, sufficient income check on all of them?
If you are going to run background checks then wouldnt it be wise to run them on everyone that lives in YOUR house. Just because the check comes from Joe does not mean that when John rapes and kills the neighbor you wont be named in the law suit and potentially lose everything you own. The cost of running checks on individuals pales in comparison to losing everything you have ever worked for.
Ray,
Could you please share how you do these checks online? Which agency is responsible for maintaining these records?
Thanks,
JS
The tenant is probably doing this because they are living month to month and are timing the receipt of a paycheck with the paying of the rent. I would guess that he gets paid around the 5th or 6th. I would suggest methodically sending out quit or pay notices to this tenant each month that he is late so that you have a paper trail of the late payments. It also allows you to get him out quicker if you have those in place. This way if he starts lagging too long (the 20th for instance) you can start court eviction proceedings. If ihe is normally paying on the 10th, I would just send the quit or pays and gladly except his late payment each month.
I realize it is a little late for this now since you are already into this lease with him but a consideration for future tenants could be a per day late fee policy. I have a policy that states that the late fee is so much, say $20 flat rate plus $10 for each day. In other words, $30 on the first day late, $40 on the second, etc. Some states may not allow this but it is good because it gives them a daily incentive to pay.
I once had a tenant that was always late, always paid the rent plus late fee before the end of the month. When lease renewal time came around, I just increased the monthly rent by the amount of the late fee -- after all the tenant had already demonstrated the ability to pay that amount.
After a couple of years, that tenant gave notice to vacate and I never regretted the extra income from my late fees. Now, I have all my properties under professional property management and the late fees are kept by the property manager as their compensation for the extra administrative tasks involved in filing notice each month.
This is what I put in my lease now:
Late Charges: ____ _____ ____
Rent is due by the 1st. Late fees will accrue as: on 4th - 4% charge ($ 50.00 ) due, on 6th - 6% charge ( $75.00 ) due, on 8th - 10% ( $125.00 ) due. After the 10th court documents will be submitted with all charges being passed on to Lessee, balances due immediately. **Highly recommend using Bank Deposit or direct deposit noted above.
I honestly do not know if I am stretching any laws here (and I might) and even tho my wording sounds like they will accrue rather than replace each other in charges I leave it as is but explain it thouroughly and have tenants initial it at move in! Done! I rarely charge a late charge/get late rents.