To install central AC or not?

Question

Max T. · Answer

Mini splits are an option. They won't be too much cheaper than a central system with ductwork, but they are great for people who do not want to run ducts throughout the property.

Marcia Maynard · Answer

Go with central AC or ductless mini splits.

Negatives of window AC units:

Unsightly, can be taken out by the tenant, can be pushed out by burglars trying to break in, can damage to window framing (tracks/sills) if not installed correctly, creates condensation that needs to be drained outside, if not installed properly condensation can run inside and cause water damage, requires more cleaning of AC unit and filters, need to match size of AC unit to size of room, requires more than one unit to effectively cover all the living areas, less energy efficient, blocks the view out of the window, makes it more difficult to decorate with window coverings, makes it difficult to use window screens, doesn't fit with the norm of the neighborhood, unappealing to prospective renters, hurts the resale value.

Mike Wood · Answer

Given your location, this would be a no brainer for me to install the Central Air.  In New Orleans, window units are a big turn off to tenants, and having lived in Florida, I would anticipate the same thing.  Plus, I bet you could charge more rent for Central air & heat then window units (I know I can, as same ft2/bedroom units go for at least $50-$75 more per month, all things equal). Tenants around here believe that window units are more expensive to operate and dont effectly cool the house.

You need to shop the price.  That initial price seems high, although not crazy.  I know that AC is one of those costs that vary wildly depending on the contractor and how busy they are.  My strategy is new construction duplex properties, so my costs are a bit different.  With that being said, a recently completed duplex house, 2500ft2 total (1250ft2 per unit) cost me $9,000 (one system per unit) and my current project is a duplex house of 1,780ft2 (~900ft2 per unit) and that is costing me $7,000 (again one system per unit).

Assuming that your property is lacking modern insulation, windows and doors, you might need a larger unit (although the cost difference for small units is not significant) plus you will had the added cost of any required interior modifications (likely using a closet for the A/C unit, dropping a ceiling to add ductwork, unless you have attic access to both units).  Assuming that your total ft2 is 1450 as noted, I would anticipate it costing about $8,000 total.

I also think you will get most of that back when you sell, but might not see any value for the window units.  I surely wouldn't pay anything for the window units, and would likely reduce my offer price to ensure I had adequate money to add Central Air after purchasing the property.

Cathy Svercl · Answer

Central A/C.  your "nicer" neighborhood requires it.  i would expect to pay about $4,500 per A/C system.

Al Williamson · Answer

I bit the bullet and put central into my rental house. I also ran duct work under the house - the more expensive option. It's been years, but I'm glad I did a first class job.

Go with a full HVAC system. I love mini-splits but it's hard to beat shade trees and a full house system.

Michael Boyer · Answer

Hi Brandon,

While my location tells you I don't have much AC experience as a landlord (but I have lived in hot West TX, Central Valley CA), I think you may have answered  the question or pretty darn close with your quick overview of the market and demographics.

For my rentals--I always look at the neighborhood and nearby rental market for clues about the level of upgrades.

Sounds like you found yours. If the area is "nicer" (and it sounds like it based on the 400 K values and rent levels) the tenants probably just want to hit that thermostat and get state of the art AC, cool through the whole house.

If you still have doubts, visit or look online at the closest rentals in the price range. Plus, on the sale, the buyer may be looking at comps and if you have new central AC and the others don't, it could be a plus. The upside looks like getting your duplex modernized and up to the condition of nearby properties.

Jim Adrian · Answer

I would go with new ac system.

Aaron T. · Answer

Central AC all the way. on unit for each and you don't need multiple window units making the place look bad. mini split is good if its a smaller space or one room, but the Central AC will give the long term bang for the buck.

Grant Lawrence · Answer

Hey Brandon

I have to agree with Max mini splits are a good option.  Here in VT the utility company will install and finance mini splits.  One compressor will run too heads so you can do a living room and a bedroom or something like that.  Reasonably efficient too.

To install central AC or not?

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