ImmoMulti — a direct buyer of multi-unit properties on the North Shore — sees plenty of plexes heated with oil or electric baseboards. Converting a plex's heating to a heat pump is one of the most consequential renovation decisions an owner can make: it touches installation costs, available financial assistance, the question of who pays for the electricity (you or your tenants) and, ultimately, your building's value and rentability. This guide breaks down the actual decision, with figures and official sources, so you know whether it's worth it.
Why convert your plex's heating to a heat pump?
Converting a plex to a heat pump targets three goals: cutting heating costs (especially when replacing oil), adding the air conditioning tenants want, and improving the building's energy efficiency. An air-source heat pump has a coefficient of performance above 1: it moves more thermal energy than the electricity it consumes.
In Quebec, Hydro-Québec's residential electricity rate is among the lowest in North America, which makes electrifying heating especially attractive. A heat pump captures heat from outside air and transfers it indoors; because it moves energy rather than producing it through resistance, it delivers more heat per kilowatt-hour than conventional baseboards. That is the heart of the economic case for conversion.
For a plex owner on the North Shore — Terrebonne, Mascouche, Blainville, Boisbriand, Saint-Eustache — three motivations combine: getting out of an aging, costly oil system, offering air conditioning in summer (an increasingly decisive rental argument), and positioning the building as a more efficient asset that is easier to rent.
The three gains the conversion targets
- Energy cost: better output per kWh, especially against oil.
- Rentability: heating in winter and cooling in summer in one appliance.
- Building efficiency: a less energy-hungry building, better positioned at resale.
How much does it cost to convert a plex to a heat pump?
For one unit, a wall-mounted (mini-split) heat pump usually costs $4,000 to $8,000 installed; a central air-source unit more. For a triplex equipped unit by unit, budget often runs $12,000 to $30,000 before grants. Removing an oil tank and upgrading the electrical panel can add to that.
The cost varies with the appliance type, the number of units and the state of the existing electrical service. Here are common orders of magnitude in Quebec — to be confirmed with quotes from qualified contractors, ideally members of CETAF (the trade group for air and refrigeration treatment companies):
| Item | Order of magnitude (per unit) | Note |
|---|---|---|
| Wall-mounted heat pump (mini-split) | $4,000 – $8,000 | Most common solution in a plex |
| Central air-source heat pump | Higher | If ductwork exists |
| Removing oil tank / system | Variable | Eliminates spill risk |
| Electrical panel upgrade | Variable | Depends on existing capacity |
For a triplex, multiply the per-unit cost by whether you equip one, two or three units. Many owners stagger conversions as tenants move out, which smooths the investment. Before pricing the project, estimate its overall return with our renovation calculator.
What financial assistance exists for a heat pump in a plex in Quebec?
Two main programs: Hydro-Québec's LogisVert offers assistance for installing high-performance heat pumps, including in rental buildings; Rénoclimat (Transition énergétique Québec) supports energy-efficient renovations with an evaluation and grants. Rates change: always confirm current amounts on the official sites.
Grants can knock a meaningful share off the bill, which directly changes the profitability calculation. The two levers to know:
- LogisVert (Hydro-Québec) — an energy-efficiency assistance program that notably supports installing high-performance heat pumps; some components target rental buildings. Details and amounts on Hydro-Québec — LogisVert.
- Rénoclimat (Government of Quebec) — a Transition énergétique Québec program that funds an energy evaluation and grants for energy-efficient work, including heating systems. See Québec.ca — Rénoclimat.
For the full picture of programs that apply to your building, see our dedicated guide: energy grants for your North Shore plex. Important: amounts, eligibility conditions and eligible appliances change regularly — base your decision on the official rates in effect at the time of the work.
Sources: Hydro-Québec — LogisVert and Government of Quebec — Rénoclimat.
In a plex, who pays for the heat pump's electricity?
The conversion's profitability depends first on who pays for heating. If each unit has its own Hydro-Québec meter and the lease puts heating on the tenant, the tenant pays the heat pump's electricity — you pay for the installation but offer a more attractive unit. If heating is included in the rent or on your meter, you capture the energy savings.
This is the single most decisive question, and too often overlooked. The return on investment isn't the same depending on how your building is set up:
| Situation | Who pays the electricity | Who benefits from the savings |
|---|---|---|
| Separate meters, heating on the tenant | Tenant | Tenant (lower bill) + owner (rentability) |
| Heating included in the rent | Owner | Owner (direct savings on expenses) |
| Common areas / owner's meter | Owner | Owner |
The classic trap
An owner whose tenants already pay for their own heating invests in heat pumps hoping to "cut expenses" — but the energy savings go into the tenant's pocket, not the owner's. The real benefit is elsewhere: better retention, lower vacancy and a unit that's easier to rent thanks to air conditioning. Identify WHO benefits before pricing the ROI.
Impact on value, expenses and return on investment
A heat pump can support a plex's value mostly indirectly: a more efficient, air-conditioned building attracts better tenants and, if the owner pays for heating, reduces expenses and raises net income — and therefore economic value. The conversion does not guarantee a price increase equal to its cost; it's an investment in positioning and efficiency.
The value of an income property is calculated from its net operating income and the capitalization rate (cap rate). If you pay for heating, lowering that expense directly raises net income — and therefore the building's value. If tenants pay, the effect on value flows through demand: an air-conditioned unit rents better, faster, and retains tenants. To understand the mechanics of net income, GRM and cap rate, read our guide to calculating a multiplex's yield.
The return on investment depends on the starting point:
- From oil to a heat pump: generally faster ROI, because the cost of oil often far exceeds the electricity equivalent in Quebec, while also eliminating tank maintenance and spill risk.
- From electric baseboards to a heat pump: real savings thanks to better output per kWh, but more modest in dollars, so a longer payback. The added air conditioning and rentability then weigh more heavily in the decision.
On rent, adding a service such as air conditioning and major improvements can factor into the rent-increase calculation under the Tribunal administratif du logement method. Before undertaking work in an occupied unit, check the notice-of-work rules with the Tribunal administratif du logement.
Source: Tribunal administratif du logement (major work, notices and rent setting).
Common mistakes to avoid
The heating conversion pays off when it is well planned. The most common pitfalls among plex owners:
- Ignoring who pays the electricity: this is the No. 1 ROI factor. Never price the project without clarifying it.
- Removing all backup heat: in extreme cold, an air-source heat pump's output drops. Keeping a backup source (baseboards, furnace) protects comfort and unit compliance.
- Underestimating the electrical upgrade: an insufficient panel can turn a "small" conversion into a heavier job.
- Not checking current grants: LogisVert and Rénoclimat rates change; a project costed on old amounts may disappoint.
- Forgetting the notice of work to a tenant in place: major work in an occupied unit is governed by the TAL.
- Choosing an unqualified installer: favour CETAF-member contractors for warranty and performance.
ImmoMulti: direct buyer of multi-unit properties on the North Shore
Torn between converting the heating and selling your plex as-is? We can send you a direct offer, with no commission and in full confidence, and help you compare both scenarios. Get a proposal within 48 hours.
