Folks, please help me understand master metered gas. I’ve looked over the forum and what i understand is that with master-metered gas, there is a single meter for the park, as opposed to direct service to tenants.
So what are the downsides from a city gas service?
Is it the fact that the gas lines are owned by the owner?
And that one would have to sub-meter and bill back?
Or is it mainly liability?
How does converting to propane (that a lot of people talk about here) solve the problem? If you install 1 big propane tank - don’t you still have gas lines running to people’s homes and have to meter and bill them? As well as make sure it’s safe?
I am just looking at a park with mater-metered gas and need to understand how much of an undertaking it would be.
One gas meter that comes into property. From there owner of property owns all gas lines and submeters. Big liability. We have a park like that and we are in the process of getting rid of it.
@Rockfundgroup, thank you. When you are saying you are in the process of getting rig of master metered gas -what are you putting in place? Propane? How does propane help solve any of the issues?
Or you are moving to all electric?
If you convert to propane, you want to make sure that it will be permitted by the municipality. Start there to see if its even an option. Have you talked with the gas co about the possibility of them taking it over?
One of my parks has master meter gas. All tenants who are on gas are sub metered and I bill back each month. Also have to have my gas service certified by the state once a year. Not a terribly difficult process all together, but does take time. We converted all the electrical to 200 amp and are slowly pushing out the remaining tenants on gas and replacing with newer model homes. I guess in the eyes of the city/state I’m considered a small natural gas utility company.
Got it. So i am still trying to get an answer to my question about converting to propane. I can see why someone would convert to all electrical (however it might not be economical in some states/areas), but i still don’t understand how converting to propane would solve this master meter issue?
Is it because one can put individual meters and submeter? Sounds like the liability and the hassle of this whole process is not going away with propane conversion.
The only way converting to propane solves the issue is if the propane company installs the tank and distribution system; otherwise you are just trading master metered propane from natural gas.
Best as I know , the propane tank would service the individual home, meaning its not a master distribution system. Then the tenant calls propane distributor to refill their tank ( or swap tanks or however they do it) . I think you have to change something for the appliances that run on natural gas to change on propane so you have to research that as well. I know in TX we seem to be all electric on all new homes. Maybe newer homes up north with that thing called winter, might be less desirable for the cost of all electric heat ? Not sure but thats a possibility.
Recently purchased a MH on propane–with new laws about licensed personal only doing the work (liability a big issue) the cost was from $1,000-$2,000 per mobile on estimates. Installer’s pressure test showed more issues plus another $200 to fix. Most home owners will not have that money to change–15 years ago we had our home owners go to individual tanks but most owners had money since these were their second homes. If you purchase the park with the present situation–you will need to have a high liability insurance to cover the possible major problems to life and property—needs to be changed before taking ownership.
If you switched to propane, it would cost tenants more and they would have to swap out appliances…id be a pissed off tenant. or if they are park owned, are you ready to eat that cost?