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Central Air Conditioning Is A Significant Investment


Central air conditioning is a decision that must be made on a case-by-case basis since upgrades bring both pros and cons. Because each situation is different, the question of whether to upgrade or not depends on several factors. Location, cost, repair, and replacement costs are important considerations. Also, the expected return on the investment must be considered before deciding to upgrade.

Upgrading to central air conditioning: The cost factor

Central air conditioning units are one of the largest ongoing costs for a rental property. For investors with limited cash flow, upgrading a rental property to central air conditioning can burden their budget. However, if your rental is located in an area where central air conditioning is a common and expected feature, you’re better off installing it.

Deciding not to install central air conditioning could severely impede your ability to attract quality, long-term tenants. These could result in long vacancies and a lower rental rate, leading to income losses over the new unit’s upfront cost. For this reason, the decision to upgrade to central air conditioning must include a careful assessment of all of the costs involved.


In some parts of the country, central air conditioning is considered a luxury item. However, adding an expensive central air conditioning unit in cities without high-temperate summers may not always strengthen your rental property’s appeal. As tenants in these areas may not be willing to pay more for what they view as an unnecessary add-on.

But in states, like Florida, central air conditioning is considered a necessity. Florida’s hot and humid climate makes air conditioning an essential part of attracting quality tenants. Tenants will not be willing to suffer in a rental home that cannot maintain a comfortable temperature.

Central air conditioning: Repair & Replacement

In many states, after installing air conditioning, you will be responsible for maintaining it as well. The unit will have to be in good working order for the entire tenancy of a renter.  Many state laws and local health codes have this requirement in place. So before installing, make sure you understand your local laws.  And get clarity on the codes and requirements that apply to your rental property.

Upgrading to central air conditioning: Expected Return

In addition to location, cost, and maintenance aspects, another important consideration is the expected return. Central air conditioning units are a significant investment that requires ongoing maintenance and repairs. Installing one may be expensive in the short term, but take into account the increased property value and appeal. By charging a higher rent, it is likely the upgrade pays for itself. And also sustains itself within a relatively short time.

However, if the market doesn’t weigh heavily in favor of upgrading to central air conditioning, upgrading will not help. It may be impossible to recoup even the original cost of installation.

How we can help?

The decision to upgrade your rental property with central air conditioning involves several important decisions. These include carefully weighing the pros and cons, gathering good information, and gaining a solid understanding of your rental market.

If you need help with central air conditioning,  Real Property Management Premier can help. The locally based professionals at Real Property Management Premier have market expertise and experience to help. We offer our property owners proper evaluations for their property, to help you decide to upgrade to central air conditioning.

By meeting the legal requirements,  we can help you use your time more effectively, and avoid the hassles of property management. So, get in touch with us to find out how we can help you today.

Contact us online or call 954-800-4433 and ask our experienced property managers about our FREE market analysis.

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