2 Family building with 3 electric meters

Hi,

I just recently purchased a 2 family home and ConEd is stating that the 3rd meter for the hallway and basement is considered a commercial meter and not residential. Is this correct? They made me put down a $190 deposit.

Just curious.

maxwellimus

in General Discussion 8 years ago

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vlack3bos | 8 years ago

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The common space meter is of bigger concern in a building with more than 2 or 3 units. Or, if you own a property that you rent out and is not where you actually live. In these cases the boiler needs electricity to turn on and off with the thermostat in addition to lighting the hallways for fire safety/evacuation. In a two family home which is your primary residence, I don’t think these extra charges are of a very big concern (you can only claim a tax deduction on half the cost of the bills since you are sharing the common space with the tenant). That said, you could always have an electrician re-rout the common areas for heat and electrical to your own unit’s meter and I don’t think this would be a big deal. In that case, ConEd can discontinue the account for the third meter, but you will want to leave the meter in place, A) so it can be reactivated if you ever sell and the next buyer wants to set it up differently. And B) because you will be paying ConEd to remove it as well as electrical permits etc. So my guess it that it’s more costly to remove than to leave it in place.

murph | 8 years ago

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That’s an old meter in the picture. You might want to swap it for a new meter. They do err.

murph | 8 years ago

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I own a legal two-family. When I upgraded the electric and gas I had them pull out the second meters. My mother was then in the second unit. There was no talk of a 3rd meter for common/cellar space at a greater commercial rate. Screw that.

I can’t estimate how much I have saved over the years–thousands. If I ever rent out I will guesstimate the potential usage(new total over old total) and put a fixed charge in the lease.

daveinbedstuy | 8 years ago

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SMH, resident2. Some people make these sort of petty issues their life. We all know why.

resident2 | 8 years ago

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The public utility commission has been making a big fuss if a tenant finds out that they are paying for a hallway light on their meter. (Shared meter condition)
I had it recently with a tenant that discovered that a radiator outside her apartment entrance, but inside the hallway (garden floor) that only she really used was on her heating system that she controlled and paid the heat for, but the kicker was a previous tenant had actually turned the valve off, so there was no heat going to this radiator, but she complained to HPD, they issued a violation for no heat in the hallway and she found out she was paying the heat for that radiator, she filed another complaint with the public service commission…… the outcome after many answers and counter answers… I had to pick up the cost of her entire heat bill, even though the lease clearly stated that she pay for heat & hot water, that she can control.
A building wired/plumbed with separation of meters for public hallways and individual tenants space & use keeps it easy.
Even if you write a lease with a deduction of $5.00 a month for the light bulb, some tenants will do something screwy like questioning the type of light bulb, how much does it really use etc. You never know how crazy some tenants are until issues like this come up.

slopefarm | 8 years ago

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Not to mention, if we are talking about a frickin light bulb, no one’s getting rich or poor on how it is billed or taxed. Can you have a third meter without a third account, with all the related charges? Seems to me an extra meter is going to cost mroe, one way or another.

Putnamdenizen | 8 years ago

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Well but if the tenant is paying for the hallway light that is better than a business deduction off income.

resident2 | 8 years ago

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This is the best way to have your building separately metered. You do not run into a “shared meter” condition, but you also get the separation of expenses for tax purposes.
A “shared meter” condition can be if your tenants meter is paying for a light bulb outside his/her apartment entrance door. “public hall & lights” are the landlords expense and a business expense off your rental income.

daveinbedstuy | 8 years ago

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Yes, that is correct. You will get the deposit back after a certain amount of time. Maybe a year. They should have told you. And, it’s billed at higher rate.