Folks, I have a (frequent flyer) customer with a 1700 SF, walk-out basement, 1960 something brick ranch who intends to rent it.
Fuel oil baseboard boiler burns 3 grand a year heating the joint which virtually excludes it from the rental market.
Heat loss calcs, suggest plugging up 3 masonry fireplaces will drop load from 100kbtu+ to 60ish.
Geo not a great fit due to baseboard radiation, 2.5 ton space pack or heavy expense (for a rental house).
Contemplating solar (axed our colleagues on solar and wind). Modulating boilers cost much to install and save relatively little.
We spoke about improving the envelope (doors, windows, insulation) aside from fireplaces but still will have a heavy heat bill.
Any other thoughts?
Thanks,
Joe

I have several rentals, and my first thought was "it is what it is" - In other words, is it that much different from similarly situated houses? Are there not other $3k per-year-to-heat rental houses? A browse through the local Craigslist should quickly identify the going rent by neighborhood, and typically most houses in a given neighborhood will share construction and thus thermodynamic details. I've learned that pricing a rental $50-$100 below the local going rate garners appreciative long-term tenants, who, knowing they are getting a good deal, are willing to overlook minor flaws and the odd high energy bill.

That said, another possibility is to offer an energy subsidy (rent reduction) during winter months calculated to somewhat mitigate the high cost. I've done this to help an otherwise solid tenant through a bad January or July. In the grand scheme of things, such a concession is relatively cheap and generates good will. There are few assets more expensive (and vulnerable to disaster) than a vacant rental property, so any means reasonably necessary to get and keep a good tenant are generally justified. Insisting on top dollar from a rental property is a foolish economy

My Dad has owned and run rental properties since the 1950s, so much of my philosophy stems from his experience, for example, I don't believe he has ever run a credit check on a prospective tenant, relying instead on interview, instinct, and intuition.

As to fireplaces, I'd look at blocking up two of them and improving the damper on the third; the third being chosen as the one a tenant might want for ambience.

Would a blower door test to quantify infiltration / exfiltration losses and identify low hanging fruit for tightening up the envelope be in order? Perhaps foaming the roof, though pricey, would make a worthwhile difference. Window changeouts and wall insulation additions are likely cost-prohibitive for a rental, but weatherization to reduce air leaks is more likely to offer quick payback.

Run the load calc for a variety of improvement scenarios and see what shakes out. When I renovate a rental I pay especial attention to energy details, figuring that a tenant with reduced utility bills will be appreciative, loyal, and more likely to be able to make the rent when the fifth of the month rolls around...I want their money, so I don't want them sending large chunks of it to the electric, gas or fuel oil supplier.

Ductless Inverter heat pumps can be an option.

Curt, when you say homes in the "neighborhood" you are covering a lot of geography (house is between country villages). We did indeed have a conversation about including heat or reducing rent.
The biggest problem is that housing in our depressed market is available to own in the village for 30K with nat gas. So people with this kind of juice can be homeowners (or renters for much less).
It's a terrible rental property really, with high squares, high acreage, high utilities etc. but it was a family home they do not yet wish to part with.
Solar has fed and local credits and rebates in the 60+% range that make it interesting to at least peek at.
H/O has a significant budget as long as investment makes sense.

GTman, unfortunately ductless units do not have significant tax credits v installation cost for a multibedroom home.
J

Given those realities, I'd encourage the owner to make whatever improvements they want in keeping with their long term plans for the house. Think of a tenant as a caretaker providing physical (lights on and cars in driveway) and thermodynamic security (someone around to take action if heat fails and pipes look to freeze). Rent might cover not much more than carrying costs. Price it to attract a reliable teacher, cop, soldier or firefighter, and hope the market eventually turns.