How to Handle Rental Properties with Oil Heat

Most people in Massachusetts prefer to use oil heating system to keep their places warm. If you have an oil tank in a property that you plan to rent out to tenants, you need to be clear about who is responsible for the maintenance and refilling of the oil tanks. We know, it sounds like additional work. But Green Ocean Property Management can help you! Here’s a brief explainer on what we do to handle rental properties with an oil heat system.

#1 We include tank refilling in contracts

We state in all contracts and leases that the tenants are responsible for ensuring the tanks are filled. If the tank goes empty and needs to be primed, they have to put it back into the system and the system has to be started back again. Tenants are also going to be responsible for the costs. 

#2 We ensure there is oil in the tank during tenant transition

We ask our tenants to leave no less than an eighth of a full tank. That way, the new tenants will not be stuck with no oil, nor would they have to pay for refilling and repriming during their transition.

#3 We make sure the delivery company does general servicing

Many discount oil delivery companies don’t do repairs on any property they don’t deliver oil to. However, if you opt for bigger companies such as Devaney or McFarlane, they also have a service department. Remember, these companies will not do general services if they do not deliver oil.

#4 We give our tenants options for vendors

We always provide our tenants with three different vendors to choose from. These vendors are those we have already ties with, as well as those we have had commendable experience with. So when an issue happens, any of those chosen vendors can go and service the units for us.

#5 We help schedule services in advance

Just like any other type of heating system, we can get it serviced prior to the winter season. It’s even more important with the oil heat system, because the tank can get clogged and the filters need to be changed.

Tank Inspection, Removal, and Who’s Liable for a Spill

Oil tanks don’t last forever, and an aging or leaking tank is a real financial exposure for a rental property — not just a maintenance item. Underground tanks in particular are prone to corrosion over time, and a leak can mean a costly environmental cleanup on top of the tank replacement itself. As the property owner, it’s worth having a tank inspected periodically (and before purchasing a property that has one), and budgeting for eventual removal or replacement rather than waiting for a failure.

Liability for a spill generally follows ownership: as the landlord, you’re responsible for the tank and the environmental cleanup if it fails, even if a tenant was the one filling it. That’s a strong argument for carrying adequate property and pollution-liability insurance on any unit with oil heat, and for not relying on a tenant’s renters insurance to cover a tank failure — it typically won’t. For state requirements on tank registration, closure, and contamination reporting, see MassDEP’s Underground Storage Tank (UST) Program guide.

Our commitment

If you or anyone else you know is looking for a proactive property manager that can help you handle rental properties with oil heat, please think of Green Ocean Property Management: where you get more than a property manager, you get peace of mind.