Post # 1
A house we’re thinking of buying turns out the owner has a lease with the propane company for the propane tank. It’s underground, and 1000 gallons. They pay 400 dollars a year just to keep the tank, to buy it out…is nearly 6 grand. They’re also obligated to buy at least 1500 gallons of propane a year with this company.
From everything I’ve seen as far as underground propane tanks go, 1000 gallon tank should be around 2 grand, not 6…and yearly fees are generally nominal because you have to use them for propane.
Is this guy getting rolled? Or does this sound legit to you guys? I don’t want to take on a lease where I’m getting steam rolled on price but I also don’t want to lose an awesome house.
Post # 3
@irishphoenix: I probably don’t have the best information for you, but I did want to give your post a bump to see if anyone can offer up some advice.
We lease ours for about the same price, but I know it wasn’t anywhere near $6000 to buy it outright. I want to say 3. We chose not to buy it because then we would be stuck with repairs or buying a new one if something went wrong, so that is why we lease ours. However, we aren’t under any obligation to fill so many gallons a year thank goodness. We don’t use near enough propane. Everything is electric in our house except our propane fireplace, which will rarely get used.
Post # 4
@megz06: Thanks, and yeah..most tanks I’ve found cost at absolute most around 3 grand. 6 is just insane. Unless it’s gold plated I don’t know how they justify that.
Post # 5
- Wedding: October 2011 - Bed & Breakfast
It sounds like your seller got a bad deal. When we were pricing out having propane installed here, a huge tank was $3500-4000ish to purchase, and this is an expensive area.
Post # 6
I don’t know how much it would cost to buy out here, but we have two 500 gal tanks above ground and rent them for $180 a year. We aren’t “obligated” to buy any amount per year, we buy based on our needs.
Post # 7
I would shop around! We only pay a large fee if we decide to switch companies to have them move it. No rental fee.