Does Central Heating and Cooling matter?

Question

I am looking at a couple rentals in town.  They are older houses but are in pretty goo shape.  There are 3 houses with a total of 6 renal units.  All 6 together bring in a little over 2000 a month.  The only thing is they don't have central Heating and Cooling.  Evidently it dosen't really matter because they are all rented at this time and the lady thats selling them says she never has trouble getting renters.  I'm just wanting to get some opinions, what do you guys think?

Account Closed · Answer

btw, where you located? that woud help us out...central  heat would prob be preferable in alaska, just like central a/c would be an advantage in new mexico or texas

Account Closed · Answer

brian's right on....by law you must have heat in most areas.that being said there are options....electric baseboard heat is very cheap and effective....in fact, i find tenants prefer it to gas bc it's only one bill and deposit to pay when they move in versus a gas and electric deposit..just be sure there's room on the breaker panel to hardwire in electric heat...it's inexpensive to buy at home depot, lowes, or harbor freight, and an electrician should wire it up for a few hundred bucks...as far as a/c, most lower income areas around me use window a/c units that simply plug into a 110 outlet...i do not provide those for tenants..they buy their own..very easy!!

Account Closed · Answer

No, central heat is not necessary. There are all kinds of other options for heat. Tenants prefer the one that's the cheapest.

I've got central heat in all my houses and in a couple of those houses the central heat hasn't been on for years. The tenants prefer to use the woodstove.

It's darn cold where I live and it's not unusual to have zone heat instead of central heat.

I've got 2 places with a woodstove look-alike propane stove, but those tenants run the elctric forced air because electric is cheaper than propane.

I know there are houses locally that have in-floor heat, but I wouldn't expect to see it in a rental, only because it is an upgraded feature.

Brian King · Answer

I live in West Virginia.  I was just wondering if maybe I could raise the rent a little with central heating and cooling.

Brian Levredge · Answer

In most municipalities you have to provide a heat source.  Whether that is central or not is up to you. You want to look at what amenities are offered on similar rentals in your area.  Is your $2000 per month a gross number, or is that cash flow?  If that is your gross income (before expenses) then it sounds like these are in a low income area and probably not worth the expense of putting in central HVAC.