Adding Central Air - Landlord Forum thread 333976

Adding Central Air by Anonymous on April 22, 2015 @11:10

One of my duplexes does not have Central A/C
Currently I allow tenants to use window units.
I am not a big fan of these units.

I am thinking of asking tenants if they are willing to pay an increased amount of rent to install the Central Air for them. If they want central Air.

I would take the cost of the unit divide by 120 Months. (10 years) and that would be the rent increase.

Currently the neighboring unit which is the same square footage but a 3 bedroom instead of 2 gets more rent than we do. Same yard size and layout, nearly identical building layout. They have A/C however. We always have a waiting list of qualified tenants to rent our units even without A/C

any thoughts on this?

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Re: Adding Central Air by Anonymous on April 22, 2015 @11:13	[ Reply ]

Where is the unit located?

Re: Adding Central Air by Katiekate (New York) on April 22, 2015 @11:16	[ Reply ]

Well... the issue you are going to have is that not only is it A/C unit you plan to install...but, you will have to have a separate meter installed for the electric...you will have to pay it. You cannot put it on a single unit bill. BUT...why go though all that hassle? you have a waiting list. 3 bedrooms makes a HUGE difference in rent. A/C doesn't. Very few places really need to have A/C...desert SW, Florida, etc. If you really hate the window units...why not install a wall unit for them? the bill is still theirs, and your windows aren't taking the punishment. You can still try to recover the cost of the unit/installation.

Re: Adding Central Air

Re: Adding Central Air by Anonymous on April 22, 2015 @17:00	[ Reply ]

If you want to upgrade your property with central H/A and you can ask higher rent afterward, do so. You have a waiting list, so I wouldn't worry about losing a couple of tenants over the increase. I would worry about the damage that can be caused by window units to your property and to people. I wouldn't ask tenants if they want the central H/A. They either pay the increase or hit the sidewalk.

If it ain't broke - don't fix it by CCRider (CA) on April 23, 2015 @02:51	[ Reply ]

Your tenants are happy with things the way they are. Why would they want to pay a higher rent to pay for a new A/C system for you? Think about the real "cost" of losing these tenants to get tenants who will pay a higher rent. I figured you'd lose one month's rent when an apartment turns over. Plus the cost of cleaning and painting and dealing with any normal wear and tear - carpets? cupboards? who knows what? Now add that up and then add the cost of the new AC system, and add up the increase in rent you'd get from the new tenant. How long will it take for you to get even? Then make a profit? And, whoops, if the new tenant moves out in a year, did you still come out ahead? Leave them alone, is my advice. If the units are causing any damage due to water, then address that as it happens. Otherwise, if it ain't broke, leave it alone, is my advice.

Re: Adding Central Air by Bryant on April 23, 2015 @10:22	[ Reply ]

Your tenants are telling you something, that Air Conditioning is an important feature to have. That's why they install window units. If this is a long term investment, you should consider upgrading the duplex with air conditioning. Your waiting list could be non existent in the near future if prospective tenants are drawn to newer rentals with air conditioning in your market.

Re: Adding Central Air by Anonymous on April 23, 2015 @11:59	[ Reply ]

Adding central air is a capital improvement and as such is deductible from your taxes, so there is no real need to charge the Ts for the cost. As an added amenity you can raise the rent for it, but as others have pointed out - make sure you don;t price yourself out of the market.

Re: Adding Central Air

Re: Adding Central Air by Anonymous on April 24, 2015 @10:00	[ Reply ]

Thanks for the input. The rental is in WI. Each unit has completely separate utility's and heating system. I am not going to put the capital investment into the units unless the tenants are willing to pay the increased rent for the added immensity. Currently there are very few units in the area that do not have Central A/C Mine is one of them. Most people cannot stand the hot humid weather we get in August and September. I have decided I will ask if they are interested in the A/C with for the added cost.