Gas or Oil

Stonybrook

I am about to buy a two family house. I will not live in this house or pay the fuel bills. The house needs new boilers. It currently has two Oil fired Coal conversion steam boilers. I am certain I will have to replace them soon. My question is, Should I stick with oil or should I swtich to gas. The house has Gas fired Domestic Hot water tanks so I know it has gas coming into the house. I think gas is more maintenance free so I am inclined to think I should switch, but am willing to be convinced that oil is better. Again, I will not be paying the bills for fuel.

Robert O'Connor_3

Boiler for each apartment?

Are there seperate oil tanks? If they're in good condition why switch? Gas piping costs might require larger service be installed to run two additional boilers. You'll need to get annual tune-ups with oil but gas units should be checked also. Expect to have the chimney lined also.

Constantin

Several factors at play.

On the one hand, you don't pay for the fuel bills. On the other hand, converting to a larger gas service may cost you some money (depends on the utility and what incentives they have this week).

However, a gas system may be easier to maintain and may not require as much annual maintenance. There appear to be fewer moving parts inside gas systems than comparable oil ones. How that translates out to reliability is anyone's guess, considering how happy most folks are with their (properly maintained) oil heat.

Then there is the added storage space inside the house that is opened up as tanks are removed and the lower risk of contaminating the property with oil if an inattentive driver lets the pipe overflow (happend at my high school, still not fully remediated). Granted, oil spills should be rare.

Another plus WRT gas units is that many of them can be wall-hung and side vented (if they're the condensing type). That usually gives you more usable space inside the basement. If you have an older chimney, it may need to be lined to accept a higher efficiency gas or oil boiler. The only condensing oil boiler I know of that is sold in the USA is the Monitor FCX, and it's allegedly quite pricey.

If this house is always going to be a rental property where the landlord has no interest in fuel costs, you'll probably lower your up-front and maintenance costs by going with a gas system. However, it may be a selling point with prospective renters that the property has a oil boiler. At least in Boston, oil prices this winter were 40% lower per BTU than gas. If properly explained, this may be a good selling point to attract intelligent renters.

John@Reliable_9

Oil is better, but.............

Most landlords like gas, because the bill is between the gas company & renter. Don't have to worry about renter running out of oil, now who pays the bill to restart burner? I work south of Boston and see allot of people(renters) who move due to gas bills. One way we have found to keep landlords and renters happy with oil is for owner to fill tank to 1/4 full, this is stated in lease, now if renter runs out of oil they were using your oil so they pay for service call, when they move tank is left at 1/4 full. One other benefit for landlord is annual service, 1. avoid late night calls, 2.fix small problems,before they are bill. Check out www.oilheatamerica new oil fired systems have come along way. Hope this helps John@Reliable

Constantin

Never thought of that...

I like the 1/4 tank solution you mention and can see why landlords would prefer contracts that are strictly between 3rd parties (like the renter and the gas company).

Yet despite the added potential headaches associated with oil heat and renters, I would think that a oil-heated apartment in Boston would allow higher rents than one heated by gas. Both renters and landlords could share the benefits accordingly.

Tom_21

Oil

As a landlord, you do not want to deal with Tennants who are always running out of oil!...If this property is in "good" location and you rent to people with a brain..then no problem..if not in "good" location and have to rent to people who do not have $ to buy oil then perhaps you can contact an oil dealer who can lock you into a fixed price for the winter season and install a thermostat that gives 70 deg only (state law? 70 or 72 ) and rent your property with heat encluded...just a thought...

Mad Dog

Stay with oil and keep the gas water heaters

2 nice Burnhams with a Riello Oil burner - you don't get much better. Are you in Stony Brook, Long Island, Sir? I graduated from there, nice area. Mad Dog

Constantin

That's the university model

... when it comes to heating, the students in dorms have no say, except to open the windows where it's too hot, and to complain whereever it's not. Furthermore, I'm not sure that you can force folks to take delivery from a specific oil dealer. That's why the 1/4 tank clause in the tank is so neat, it offers a buffer for landlord and the tenant.

On a completely unrelated note, why is it that oil systems cannot tolerate running dry? Are their pumps configured such that they cannot generate any suction if air is in the lineset? I just wonder as I once observed the line-set getting re-charged after an extensive PM session (we must have removed a bag of soot), and it looked as easy as undoing the nut at the burner and letting gravity takes it's course.

Naturally, I must be missing something. It probably goes along with a) being a mere HO, and b) being an engineer. (Oh dear!)

Robert O'Connor_3

Put the tenant on a fixed

price, auto delivery, basic emergency service contract with an annual payment plan. No excuse for running out of oil.
Tenants are always a pain. Even after a shutoff for non-payment to the gas company, you'll still get the no heat call!

DIY Homeowner

Insurance

If you stay with oil, consider the following:

If the oil tanks are old (more than 30 years), or if the fill piping is weeping upon fills, or if the vent pipe is not sized correctly, install new tanks and piping. Around here, new tanks and piping run about 800-1200 bucks each, with another 500 bucks each for the removal and disposal of old tanks.

Also carry oil spill insurance, which is a separate policy than regular owner's insurance, which does not cover oil spill clean-ups. You don't want to have to pay for an oil spill clean-up (and neither does the oil company).

Any by all means, properly insulate the building BEFORE you replace the boilers.

GaryDidier

Gas or Oil

Oil gives more bang for the buck BTU wise. Include the heat in the rent and buy your own oil. You can then recieve a premium on the rent that exceeds the cost of the oil.You will not have to worry about running out of fuel. Aside from all else, use good doors and windows and INSULATE, INSULATE, INSULATE, no matter what system you use. I speak from my own experience.
Gary from Granville

Uni R

Oil gives more bang for the buck?

That really depends on where the person lives. Natural gas is cheaper per BTU here. Also, the natural gas price can be locked in on contract for 5 years at a fixed price too here where oil cannot. Energy costs vary region to region and the person should have mentioned where the house is.

Stonybrook

Update

I went into the house today for the first time. The boilers seem to be working fine, 82yr old Arco. The oil tanks are 5yrs old. If I need to replace the boilers I have to way all the options. Lining the chimney is something I hd not thought of. Thanks for all the input.