I am inheriting tenants from the previous owner. The property needs new HVAC system which would cost about $4-5k. The existing heating system is at least few decades old, and it sounds pretty rough when it turns on. My plan is to honor the existing lease which ends in April and not renew lease so that I can renovate the property. So far, I am leaning toward the idea of not installing new HVAC system until existing tenants vacate the property, and I would probably have to eat up the cost of repairing the existing heating system throughout this winter. I feel like trusting someone who I didn't vetted/screened with $4-5k capital investment sounds like a financial disaster.
What do you guys think? If you are in my shoes, would you install new HVAC system for existing tenants from the previous owner?
How many calls do you want to get this winter when tenants complain that their heat isn't working?
Change out the system now. It's typically a good time to do this; not particularly "hot" weather, not yet "cold" (at least not here in Georgia). Prices for doing this should be good (as opposed to those emergency charges in the middle of a cold winter or a brutal summer).
I would wait till they vacate. Just because it sounds rough does not mean it is going to fail. There are few moving parts on a furnace that would fail that can not be replaced for a few hundred. Let the system limp through, do the minimum repairs if any. With luck it may not have any issues.
Alternately you could ask if they are willing to move out voluntarily.