We are looking at purchasing a 2 bedroom home for rental property. It currently has 60 amp service with knob & tube wiring. Our city code requires 100 amp service but do we have to upgrade before renting property? Power company says there is no flags on the property and they can turn the power back on in our name with no problems.
2007-03-15 04:01:28 · 12 answers · asked by car99r 2 in Business & Finance ➔ Renting & Real Estate
I wanted to add after seeing a few responses. I did not realize the danger of the wiring that is why I asked the question. It sound slike we should go ahead and replace it no matter what. We actually have not purchased the home yet but are in the bidding process.
2007-03-15 04:13:01 · update #1
Specific local codes may differ...
In most cases you do not have to rewire unless there are known problems with the wiring.
But the old knob and tube wiring is not up to the loads an average family will put on it in the modern world. The first problem may be frequenly blown uses. Renters tend to take the easy way out and get higher rated fuses so they don't have to replace as often. That would cause the fuse to be able to carry more current than the wire and... the house burns.
So while it may not be legally required to rewire... its the smart thing to do.
2007-03-15 04:08:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I would vote against buying this home if you cannot afford to upgrade it.
maybe you can negotiate the price lower so that you can afford to do it.
Part of the reason you really should consider the upgrade is that the 60 amp service could put your rental property at risk for fire.
If you rent the house to a family with teenagers, think how much power the average teenage girl uses in her room. A computer, cellphone a hair dryer a curling iron etc.
When this homes wiring was installed, NONE of this was an issue.
Several appliances attached to 60 amp service was cause your home's wiring to overheat....a fire under those circumstances would most likely make you liable for hefty fees...since the tenant will most likely try to sue you for negligence no matter what your contract says....pay now or pay later.
If
2007-03-15 04:17:40 · answer #2 · answered by kissmymiddlefinger 5 · 0⤊ 1⤋
You can always ask that the people who own the property to bring it up to what the city code is, even though it doesn't have to be. This way it will make you feel better about buying the home. There may come a day when you want to sell it your self and with it up to city code that will be one less potential problem when you would go to sell it. Plus if it ever would start to go bad you will have to take care of the costly price your self when and if it does accure. Fix now and they pay. Fix later, you will be paying some big time money for the work to be done.
If the city is telling you that it is alright with it the way it is then it is also safe to be able to rent it out, there shouldn't be any thing to worry about as far as that goes. Just remember that in order to be able to rent out your property that you must pay a rental tax fee each year, that is through the city. Yes, every body gets their slice of the pie!!
Buying a home is a huge investment and you want to be comfortable knowing that everything will be alright, I don't blame you at all for being uncertain. It is always better to be safe than sorry. But remember now is the right and best time to get it fixed before you buy it, if you are really concerned with it. Having them fix it would be best then it will be done before it becomes yours. Don't worry about them not having the money to do the repairs, the money can be taken out of the escrow account through their agent. After they sell it to you that money will be taken from their proceeds and returned to the agent's escrow account. That is why I am saying it really is better to have it done now.
***** Our Agent explained this to us and that it can be done this way... check it out with theirs.****
Good luck to you what ever you do. Do what ever is going to make you feel the safest, and is going to allow your mind to be at total ease.
2007-03-15 05:03:50 · answer #3 · answered by Cindy 6 · 0⤊ 0⤋
The problem you may encounter is a lot less power, fuses being blown and a fire is likely to happen. I'm not sure the insurance company will like it and may have a problem covering your rental property (not up to code). You should talk to the insurance company and if possible get a qualified electrician to make sure it's safe and up to standard (for the time being). Be sure to get it in writing if possible, just in case. Be prepared to pay for the upgraded wiring, eventually it will be mandatory or fines will follow.
2007-03-15 04:11:52 · answer #4 · answered by trojan 5 · 0⤊ 1⤋
As owner occupied you won't have to upgrade. Your property would be grandfathered for city code. As a rental property you will have to up grade to minimum of city code. Insurance company may require upgrade also.
2007-03-15 04:22:39 · answer #5 · answered by Gunny Bill 3 · 1⤊ 0⤋
legally yes you have to upgrade the electrical system before renting it out. at least where im from in michigan you do. Before renting out a home it must pass an inspection depending on where your from. now if i were you i would just do it the old knob and tube is outdated and dangerous. if your renting to someone who gets there rent paid by the government then theres no way around redoing the system. but if you dont want to be legal about everything you can get away with not i wouldnt suggest it you could end up with a major lawsuit on your hands
2007-03-15 04:07:37 · answer #6 · answered by ? 2 · 0⤊ 1⤋
I would not recommend turning the power on in your name. That is a disaster waiting to happen if your renters skip out on you. It's one thing to not get paid your rent, it is another to be left with a large electric bill to pay out of your own pocket. Renters can get the electric turned on in their own name. I am not sure about where you live, but in most places the landlord is required to make sure the building is up to codes before renting the house out.
2007-03-15 04:06:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋
No, rent it out a few months......but dude, knob and tube...you are talking like at least like 60 or 70 years old....any wiring that old should have been replaced years ago.....your insurance might have a clause about this...if it doesnt, rent it out, but replace it asap
2007-03-15 04:08:07 · answer #8 · answered by Anonymous · 0⤊ 0⤋
As a landlord, yes, you do have to meet the city specifications. But, if you to reside in the home, you would not. Tenant laws are very strict.
2007-03-15 04:05:34 · answer #9 · answered by Guess Who 6 · 0⤊ 0⤋
GET THAT IN WRITING!!! Then go ahead and turn it on and start renting.
2007-03-15 04:05:08 · answer #10 · answered by biscuitperifrank 5 · 1⤊ 0⤋