Los Angeles - Renting out in-law suites - Central heater/AC or mini split unit?

Question

Hello friends, I'm planning to build and rent out a 500sft in-law suite, It is attached to the main building and I have existing duct to the rooms. But we usually turn off the AC/heater at night, not sure if it will be a problem for the tenant to share to central AC with us, so I'm thinking about use a mini-split unit for the in-law suit. But we are in Los Angeles county, energy bill is not cheap, should I worry about the tenant use the electricity? what is a good way to keep my energy bill under control and split the bill? Thanks!

Christopher Jason Lloyd · Answer

Depends:

1. If the existing ducting works fine and the room is well insulated, it might make sense to just leave it as is. If they want extra heat, they can get a space heater. If they want it cooler, a fan/window unit. Installing AC can be a costly investment that will take a long time to recoup. Especially if the current setup serves its purpose.

2. If your plan is to eventually move out and rent out the in law and the home separately or if the current setup doesn't heat/cool the room well, then I would do the minisplit.

As far as the utility bills, see if your area allows for RUBS. (Ratio Utility Billing System). Typically electricity is split by square footage occupied by each occupant and water is by the number of occupants per unit: Example 2000 square feet home and in-law. Home is 1500 sqft and inlaw is 500, home pays 75% of bill and the inlaw pays 25% since HVAC is the primary user of electricity. Because water use is dependent on occupants, usually this is devided up. Lets say in that home you have 2 people in the in law and 2 people in the primary. You have 2 people in each side using water, itll be 50/50.

Rick Albert · Answer

Are you including utilities in the rent? Is it a one bedroom or a studio? If so, what I've done in my house hacks is either a flat fee for utilities and/or have a utility cap. For example, "utilities are included, however if the bill exceeds $X, then tenant will pay Y% of the bill." This way it controls how much they use.

I like the idea of the mini split because otherwise they will complain if it is too hot/cold and someone has to suffer. The cost to put one in should be under $3K-$5K (would need to get updated pricing) per unit. You could also explore putting in ceiling fans and screens on the windows. I do that for all my bedrooms. It keeps things cool without having to use the mini split.

Carlos Ptriawan · Answer

There're few products that's even more energy efficient in Amazon, take a look at those.

Sarah W. · Answer

Thanks for the advice, Robert!

Robert Reynolds · Answer

I would recommend doing a mini split! Your tenant will appreciate it for those hot days or cold nights. You may even get by with a window unit if you are really tight on money. It would all depend on where the home is located and the expectation of tenants for that part of the city.

Los Angeles - Renting out in-law suites - Central heater/AC or mini split unit?

Los Angeles - Renting out in-law suites - Central heater/AC or mini split unit?

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