HVAC Systems in multi-family

[Jalen Wilson]

Hey everyone, I know having central air for rental properties over window units can make things a lot easier and beneficial. Would it be worth it to convert a multi-family from window units to HVAC?

[Account Closed]

Quote from @Jalen Wilson:

Hey everyone, I know having central air for rental properties over window units can make things a lot easier and beneficial. Would it be worth it to convert a multi-family from window units to HVAC?

Converting a multi-family property from window units to central HVAC can be a worthwhile investment. Central air conditioning offers numerous benefits, including increased energy efficiency, improved indoor air quality, and better overall comfort for tenants. Additionally, central HVAC systems typically require less maintenance and provide more consistent cooling throughout the property. This upgrade may also increase the property value and attract higher-quality tenants, ultimately leading to higher rental income. Overall, the long-term benefits of converting to central HVAC outweigh the upfront cost, making it a worthwhile investment for landlords.

[Jacob Sherman]

can also do split systems which work fantastic 

[Robert Rixer]

From my experience, since tenants typically pay electric, they would directly pay for powering the window units versus a central unit which the landlord would pay for. The market could build this in to pricing but I honestly don't see much data to clearly support that. Another consideration is if all the current window units are the same age or if they are a mix of new and old.

[Joshua Christensen]

A couple of things I'd consider...

1. ROI - what's the cost and will it improve your rents? Will it affect the ability to rent the units?

2. LA heat in the summer is fun.  Having centralized AC could be a big benefit to your tenant base which could improve rent.  

Make sure to do a good cost analysis and break even to see how long to recoup the cost.  

[Jalen Wilson]

Quote from @Joshua Christensen:

A couple of things I'd consider...

1. ROI - what's the cost and will it improve your rents? Will it affect the ability to rent the units?

2. LA heat in the summer is fun.  Having centralized AC could be a big benefit to your tenant base which could improve rent.  

Make sure to do a good cost analysis and break even to see how long to recoup the cost.  

What if you use private money to pay for the HVAC systems and other rehab cost?

[Jalen Wilson]

Quote from @Robert Rixer:

From my experience, since tenants typically pay electric, they would directly pay for powering the window units versus a central unit which the landlord would pay for. The market could build this in to pricing but I honestly don't see much data to clearly support that. Another consideration is if all the current window units are the same age or if they are a mix of new and old.

What if you use private money to pay for the HVAC systems and other renovations to the property?

[Jay Thomas]

Sure thing! Having central air conditioning (HVAC) is a big plus for rental properties, especially in Shreveport where it gets pretty warm. Switching from window units to central HVAC can bring some good things, like the chance to charge higher rents, attract more tenants, make tenants happier, and increase your property's overall value. But before you jump in, think about the upfront costs, like buying and installing the system and maybe making changes to ducts. Make sure to do the math to see if the investment is worth it by considering how much more rent you could charge and any energy savings. It's also smart to get advice from an expert to check if your property is a good fit for central HVAC. While it sounds great, understanding the costs and making sure your property is ready for this upgrade is important to make the most of the benefits.

[Fred Chalmers]

It is always recommended to do a cost benefit analysis before doing a project to determine the feasibility.
Whether using private money or not the cost benefit has to be addressed.
It will affect investment and equity when measuring profit.

[Joshua Christensen]

Quote from @Jalen Wilson:

Quote from @Joshua Christensen:

A couple of things I'd consider...

1. ROI - what's the cost and will it improve your rents? Will it affect the ability to rent the units?

2. LA heat in the summer is fun.  Having centralized AC could be a big benefit to your tenant base which could improve rent.  

Make sure to do a good cost analysis and break even to see how long to recoup the cost.  

What if you use private money to pay for the HVAC systems and other rehab cost?

 Same applies.  Make sure it is something your tenants want and will pay extra for.  What's the return on your investment including the Private money costs.