Expert: Phil Nicols - 2/22/2009

Question
After moving into our rental we discovered that to heat the entire house cost a fortune.  The house is large and most rooms have electric heaters.  Since there is only two of us we have had to block off two entire sections of the house to help keep our heating cost down to $800 a month!  Which is still very high.  When we checked with the utility company of average costs the bills were considerable lower in the winter months.  We found out after we moved in that the owners do not live in the house during the winter months.  We have asked for a lower rent due to the inefficiency of trying to heat a house in Massachusetts during the winter months due to poor insulation and huge cost associated to keeping each room warm.  We now really have a two bedroom house and can not use the master bedroom because it is on a separate heating element.  Is this fair?  We also have a rent increase after the first year; if we do get a reduction in rent does this change the rental increase after the first year or will it still be raised to the agreed price?  Thank you so much in advance for your help.

Answer
Alisa

this is not a commercial real estate question. its more like Residential, Landlord / Tenant issues.

however a few things come to mind;

1) first- buyer beware (tenant in this case)
2) how long is your lease?
3) can you get out?
4) is there some reason you need to stay in that location?

in any case, 800/ m is ridiculous - how big is the house? and how is it heated? Unless you are living in MaraLago (and if you were, money wouldn't be an object right?) I cant see 800/m for heating.

it would be in the landlords best interest to rectify the situation for you, or anyone else that will be living there. update HVAC systems, add insulation etc. most provinces and states now have incentive programs, grants or tax benefits for doing so!

if you move out, the LL will have to fix this one way or another.

I would call your local rent review board or landlord / tenant office asap - ask them.

also call the utility company - ask them what other houses in the area cost to heat and if that is reasonable for your area - you might even have a leak!

that said -- deficiencies are NOT a way to get out of paying rent. They are usually looked at as a separate issue. In your case however, apparently you are responsible for the heat as it is billed directly to you.

generally, if it is base board electric, that usually cost more - should converted.

the best system today is GeoThermal which takes heat from the earth but its also the most expensive - but again there are govt offsets for that.

good luck.

best, Phil