Buying a House with a Propane Tank: A Homeowner’s Guide

What You Need to Know About Buying a Home with a Propane Tank

If you’re moving into a propane-powered home for the first time, you may have questions. While many people associate propane with backyard grilling (and yes, it’s great for that), it’s also a highly efficient, versatile, and dependable fuel source for your entire home. From heating to cooking to powering appliances, propane offers a reliable energy solution that performs well in all seasons. 

For starters, powering your home with propane has a few major benefits — it’s more affordable, more efficient, and provides a more even, high-quality heat. Running a home on propane puts money back in your pocket, is better for the environment, and warms your house faster than an electric system. 

Powering an entire home, or even just several appliances, with propane can help you save money on your monthly bills while reducing greenhouse gas emissions. Approximately 11 million households use propane for these benefits alone. Water heaters, dryers, ranges, and cooktops run better on propane. You get more efficiency, lower costs, and greater versatility than electric versions can offer. 

If you’re new to the ins and outs of propane for homes, we’re here to help with the transition. Let’s walk through some of the most commonly asked questions we hear from homebuyers who are interested in a propane-powered home. 

Identify Tank Ownership 

Buying a home with propane? Start by figuring out who owns the tank. If it’s leased, it’s owned by the propane provider. If it’s owned by the seller, it usually stays with the home and becomes part of the property sale. Whether you’re moving out or settling in, here’s how to make the transition smooth and your service uninterrupted: 

If You’re Moving Out 

If you’re leaving a propane-powered home, there are a few things to wrap up before you go: 

• Call Before You Move: Call your propane provider to share your move-out date. Ferrellgas customers can reach us at 888-337-7355. Check your tank level before calling so you have everything you need to close your account. 

• Label Appliances: Help the next homeowner by marking which appliances use propane. A simple note on the fridge or a sticky label on the dryer makes a big difference. 

• Share Propane Details: Leave a note with your Ferrellgas account info or give it to your realtor. It’s a helpful way to make the handoff easier for the new homeowners. 

If You’re Moving In 

Welcome to your new home! If it’s powered by propane, here’s how to get started: 

Outside of the House 

• Confirm Tank Ownership: Tanks are either leased (typically from companies like Ferrellgas) or owned. Only the owning company can refill a leased tank. Check the purchase agreement to confirm ownership and see what happens to leftover propane. 

• Check Propane Levels: Use the tank gauge to see how much propane remains. The sale agreement should also list the level at the time of purchase. 

• Review the Data Plate: Lift the tank lid to find the data plate with the serial number, capacity, and manufacturing date. Take a photo for your records — it can help track maintenance or leveling issues. 

Inside of the House 

• Identify Propane Appliances: Look for a list left by the previous homeowner and do a walkthrough to confirm what runs on propane. See our list of the most common propane appliances and learn more about their benefits. 

Interested in replacing or upgrading an appliance? Rebates may be available for switching to propane furnaces, water heaters, and more. 

• Review Propane Safety: Make sure everyone knows how to use propane safely and what to do in an emergency. Check out our Safety Brochure and Propane Safety Tips page for more information.  

• Set Up Your Ferrellgas Account: Tell us your move-in date, and we’ll take care of the rest. 

Note: If you’re taking ownership of the previous owner’s tank, don’t forget to contact the current propane provider to confirm transfer. 

What is Propane Being Used For? 

Propane can fuel everything from heating systems and water heaters to appliances like stovetops, washer-dryer units, and even fireplaces. You’ll want to find out which systems and appliances in the home run on propane, as this can help you calculate energy usage and costs. Don’t forget to check outside, too. Many homes use propane to power built-in grills, firepits, pool heaters, and other outdoor amenities.  

Appliance Compatibility 

Some natural gas appliances can be converted for propane use, but not all. If you’re bringing any appliances from your previous residence or upgrading the ones in your new home, check the owner’s manuals to ensure they can be powered by propane. 

What is the Propane Tank Size? 

Propane tanks come in many sizes. If you’re unsure of the size of the tank on the property, you could use our guide to propane tank sizing to help you identify it. To find out the size of a tank leased through Ferrellgas, just give our Customer Service Professionals a call to confirm the size of the tank. 

If you’re looking for recommendations on the right tank size for your needs, be prepared to share the square footage of the home or building. We will need it to provide the most accurate guidance. 

Propane Safety and Ventilation 

Before moving into a home with a propane tank, it’s essential to understand how it’s set up and ensure everything meets safety and efficiency standards. 

Safety Standards Compliance 

Propane tanks and their installations must adhere to strict safety regulations to ensure safe operation. This includes compliance with the National Fire Protection Association (NFPA) 58 guidelines, which outline requirements for tank placement, protective barriers, and emergency shut-off valves. It’s also a good idea to have a licensed propane professional inspect the tank to confirm it meets all necessary local codes.  

Ferrellgas takes safety seriously. The safety of our customers and employees is our number one priority. That’s why we equip our customers with the information they need to use their propane tank safely. Simply download a copy of our Propane Safety Brochure or check out our list of propane safety tips to help prepare you for your new life in a propane-powered home.   

What Should You Do if You Smell Propane? 

Adequate ventilation is critical when dealing with propane appliances and storage. Propane is a clean-burning fuel, but improper ventilation can lead to gas buildup and pose safety risks. You’ll want a local home inspector or propane appliance installation expert to inspect your setup to ensure that any indoor propane appliances (such as water heaters or stoves) are installed in well-ventilated areas, and that the propane tank itself is positioned in a location with good airflow. 

Can You Smell Propane? 

Propane has a strong “rotten egg” smell, thanks to an added chemical called Ethyl Mercaptan, which makes identifying leaks easier. If you smell gas or suspect a leak, act immediately. Leave the area right away, ensuring that everyone else does the same. Once you are at a safe distance, call 911 and Ferrellgas at 866-708-8209. Our team will respond as quickly and safely as possible.  

If it is safe to do so, turn off the main gas supply valve on your tank. To shut it off, turn the hand wheel clockwise until it stops.  

DO NOT return to the area until a professional has confirmed it is safe. Your safety is the top priority, so always wait for official clearance before going back. 

Propane Gas Lines Location 

Understanding the layout of your propane gas lines is key to both safety and future renovations. Underground gas lines should be properly buried and clearly marked to avoid accidental damage during yard work or home improvement projects. 

What to Do with the Propane That’s Left in the Tank?  

If you’re buying a home with leftover propane in the tank, the current owner may want to sell it to you. This process requires a written statement from the propane supplier stating the current market price and how much the propane should be sold for. After the sale, getting the tank topped off should be easy. We can measure the amount of propane left in the tank during the transition of ownership. 

Propane Tank Maintenance History 

When touring a home, ask about the propane tank’s maintenance history. Maintaining a well-kept tank is easier than inheriting an older, damaged unit. If you’re still unsure, schedule an inspection with a trained propane professional to ensure everything is in proper working order before you move in. 

How to Take Care of Your Propane Tank 

If your propane tank is owned, it's important to stay on top of maintenance and tune-ups to extend its lifespan and ensure safe operation. For example, removing rust and repainting an older tank with a light, heat-reflective color can help prevent overheating. However, if your tank is leased through a provider like Ferrellgas, maintenance responsibilities typically fall to the provider. Always check your agreement before attempting any upkeep. 

Fuel Life Simply® with Ferrellgas 

If you want to learn more about propane pricing in your area or how Ferrellgas can provide you with reliable propane services during the transition of propane tank ownership, contact your local Ferrellgas office today.  

 

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