Is It Really Worth It To Install Central Air?
I have several homes that don't have central air. In these homes the tenants put in their own window units if they want to. I was told by my PM and also a realtor friend that central air made no real difference in the rentabiliy or total rent of a property. My own limited experience seems to be that CA costs a lot install and maintain while inceasing rentability and rents only slightly. I'm trying to decide if I want to install it in a house I'm rehabbing that doesn't have it. What's everyone elses experience? Should I put it in or not?
I only put it in if I plan to sell the place. I don't update it simply to rent it, however I live in Wisconsin and we only have about 6 weeks of hot weather through the year. Where you live it may be more necessary. How about offering it to a renter if they sign a miniumum 18 mo. lease and are willing to pay an extra $15.00 per month to have it. Then your renters will pay it off for you in effect. Average cost of adding CA is say $1800.00. In one year its paid back to you by your renters making the extra $15.00 payment. I know of landlords who do this. It's called "offering rental options".
If the house is to be a rental let the renter furnish their own window units. Make sure the electrical system can handle them. If and when you decide to sell the house then install a C/A unit,it will help resale value.
I like sandbahr's advice.
Also if the tennants are paying electric...its not a burden to you for a higher bill because of the window unit being more expensive than central AC.
I find central air to be required for all rehabs and most rentals in my area. I have a good hookup and can get the job done at about $900-$1000 including labor. Check around.
Good luck
I think the answer is, "It all depends." Being in upstate NY, I don't think it's worth it. I've never even seen a tenant put in their own window unit. Farther south, it might make the difference between being the property of choice in a particular community or simply being just another rental property. Look around at what's being offered in the community. If CA isn't being offered, investigate why. There might be some very valid reasons. But if it's simply something that others have missed doing and you think it might be beneficial for attracting and retaining tenants, go for it.
[addsig]
Just like it was said before, if your planning on selling, it probably is a good idea. Also depends on the climate, I know that its a winner to advertise that though around these parts. Decisions, Decisions....
I don't really understand Sandbahrs math. At $15.00 a month it would take 10 years to pay off the air conditioning not 1.
120 months x $15.00/month = $1800.
Would you really want to spend 10 years paying off CA?
Quote:
On 2004-03-01 13:22, speance wrote:
I don't really understand Sandbahrs math. At $15.00 a month it would take 10 years to pay off the air conditioning not 1.
120 months x $15.00/month = $1800.
Would you really want to spend 10 years paying off CA?
I think he was off by a zero.
What's a zero among friends?? Where I live, it's a good idea to have A/C.
A thought to ponder:. If doesn't make a difference to the tenant relative to rent up and their retention , why would A/C make a difference to a purchaser? You will not recover your investment on sale. I can think of a number of cheaper marketing itmes I can do to promote the sale.