Oil Prices (by Cheryl [NH]) Jun 4, 2008 4:52 AM|
Oil Prices (by Jason PA [PA]) Jun 4, 2008 5:23 AM
Oil Prices (by Cheryl [NH]) Jun 4, 2008 5:40 AM
Oil Prices (by MrRational [MD]) Jun 4, 2008 5:44 AM
Oil Prices (by Cheryl [NH]) Jun 4, 2008 5:59 AM
Oil Prices (by billy button [MA]) Jun 4, 2008 7:17 AM
Oil Prices (by Cheryl [NH]) Jun 4, 2008 7:26 AM
Oil Prices (by Jason PA [PA]) Jun 4, 2008 12:39 PM
Oil Prices (by MrRational [MD]) Jun 4, 2008 2:29 PM
Oil Prices (by nhsailmaker [NH]) Jun 4, 2008 4:16 PM
Oil Prices (by AllyM [NJ]) Jun 4, 2008 8:10 PM
Oil Prices (by Cheryl [NH]) Posted on: Jun 4, 2008 4:52 AM
State Specific Question About: NEW HAMPSHIRE (NH)
To All Landlords: Wanted to get some feedback from some Landlords regarding the oil prices. We have 2, two-family homes we rent out. One of these heat is included in the rent - the other we just got done separating the heat. Of course, the tenants take advantage of the fact that I pay the heat. One tenant has been there two years in July; the other has been there for a 1 1/2 years. I'm currently considering a small increase for each tenant to help cover the costs. Questions: How do other Landlords handle controling the heat when paying for it? Are other Landlords considering rental increases due to oil prices, too? Thanks for the input.. --65.175.xxx.xx
Oil Prices (by Jason PA [PA]) Posted on: Jun 4, 2008 5:23 AM
I pay the heat for some units, yes I am going to have to raise rents to help cover some of this expense. Unfortunately on the low ncome units I don't think I can get enough of an increase to cover even half the added expense based on market rents. --69.242.xxx.xxx
Oil Prices (by Cheryl [NH]) Posted on: Jun 4, 2008 5:40 AM
Hello Jason - I was checking my oil usage and prices and I figure this year my costs will double at least. I've noticed rentals are slowly increasing in my area. I was thinking about a 3% increase which is pretty minimal but I like to rent just slightly below market value. I get more interest & more tenants to pick from. Over the past 20 years, I've been lucky to have had more good tenants than bad. Good luck in recuperating your costs - it's getting harder and harder for everyone. Take care. --65.175.xxx.xx
Oil Prices (by MrRational [MD]) Posted on: Jun 4, 2008 5:44 AM
So many of these threads seem couched in some way a recognition that either 1) the LL wasn't charging enough in rent all along or, 2) the LL has inefficient equipment or insulation and/or, 3) the LL is looking for a way to make up for these by shifting one expense budget line item to the tenant or, 4) a general problem related to the awkward logistics associated with fuel oil tank filling.
I'm going to suggest that whatever you want or need to do... that you approach the situation with your actual raw data and resolve the situation based on that.
Go back in your receipts and rent logs (3 or 4 years) and break out how your budget was allocated each of those several years (eg 500/6000 in rent vs the $600 fuel oil bill) so you can honestly and fairly determine where you need to be now.
You should already have these budget numbers (profit/loss) compiled and accurately broken down any number of useful ways; but if not, do some catch up bookkeeping now and use it.
In short: The tenant pays for **everything** (or should be) INCLUDING oil whether that is done by paying one bigger number or broken down into different amounts that still add up to that same bigger number.
Oil Prices (by Cheryl [NH]) Posted on: Jun 4, 2008 5:59 AM
I understand your point. All my expenses are currently covered by the rents and I make a pretty good profit. I'm fortunate that my other expenses (mortgages, etc) are extremely low which helps. So I can't complain. I wouldn't be renting if I wasn't getting something out of it ! LOL !! --65.175.xxx.xx
Oil Prices (by billy button [MA]) Posted on: Jun 4, 2008 7:17 AM
ck for open windows in winter if u are paying for heat.nice if u can have them pay for all utilities. --208.58.x.xx
Oil Prices (by Cheryl [NH]) Posted on: Jun 4, 2008 7:26 AM
I love open windows in the winter - LOL ! Next year we're separating the heat at our other apartment. Then everyone will be on their own. Do you happen to be near Billerica, MA? We used to rent out a house down there... --65.175.xxx.xx
Oil Prices (by Jason PA [PA]) Posted on: Jun 4, 2008 12:39 PM
Hey mr irrational, the world is not always fair and landlording expenses are not either, the costs of fuel oil is not an easy rent increase, rents are based on the fair market value. There are many other factors such as a bad economy, the income level of the tenancy etc. Market rents themselves are subjective, they are a range not a set amount. I have units that I rent for $595 that newbies may try to get $750 for, yet the most experienced landlords in town only rent them for $550. --69.242.xxx.xxx
Oil Prices (by MrRational [MD]) Posted on: Jun 4, 2008 2:29 PM
The issue isn't whether the rent is $795 or $595 or $500. As I'm sure you know all too well, the issue is what that number means relative to your costs.
"The most experienced LL's" you refer to probably don't have the mortgage costs that a newer LL has (is that you?) but while they may be able to rent the space for less they can't supply the oil for less too.
If the oil price increase is the straw breaking the camels back (as opposed to the 20 other deal structure issues that were there before)... well it isn't gonna be news to your tenants that oil costs more for everyone. They see it everyday at the gas station just like LL's do.
No one has said your tenants have to like the increase that is objectively called for in almost every instance, but absorb it they must. On a practical level what choice will they (or you) have? Or the LL's who are your competition for that matter?
The only question remaining, in most situations, is HOW the increase is handled not IF there will be one.
Oil Prices (by nhsailmaker [NH]) Posted on: Jun 4, 2008 4:16 PM
Do whatever you can to get heat split out NOW - I am taking out 4 year old oil furnaces in 2 different units an putting in 2 new high efficiency Propane - maybe $1000 each - worth every penny - make tenants pay for heat NOW. It will never get cheaper - ever!!Bite the bullit, go in hock just do it now. & INSULATE!!!
I did 5 units in one year and it paid for itself in the 1st year. DO IT NOW.
This is a long term business - tenants will come and go - there are no repeat customers. Build your best most efficient product and it will serve you well.
Oil Prices (by AllyM [NJ]) Posted on: Jun 4, 2008 8:10 PM
I'm getting rid of 5 oil guzzlers as we speak. Just waiting for permits. I sold something big on ebay so that will pay for it. Can't seem to bank any money from the rents although all are full. One of my tenants hollers up to the woman with the thermostat in my four unit, "Kick up the heat", when he gets home. Last month she went down and knocked on his door since it was warm out. She found him with only shorts on sitting around in a chair. He wanted the heat up so he could sit around half nude in comfort. Last week electrician and I went in to see about baseboard heat and he had a three foot high stack of magazines piled up against the bathroom steam radiator! How was any heat going to get through that? I have asked him to move them but heat is off now. Other tenant smokes but the upstairs guy doesn't like the smell that trickles into the hall. So she opens the windows with the heat on and smokes away. The one is getting gas hot air and there are two heaters so the tenant will now pay. We will see if the windows open up after her first heat bill. I will pay a part of it and reduce rent a bit to make it work. --76.99.xxx.xxx