Value of central air in multi-family

[Account Closed]

I'm thinking about adding central air to all units in an 8 unit apartment located in St. Louis. Currently everyone has a few window AC. Would adding central air add value to my property? How much? Based on the location, I should be able to get $6000 more per year (bumping rent up as leases renew). It would obviously take a few years to get there. Any ideas or advice appreciated.

[Joe Fairless]

@Account Closed sounds promising. I would: 

1. Evaluate competition to see what they are doing and what the increase would be (sounds like this was done already)

2. Determine if I could get a 25% return with the improvement - if so, then I would do it since it also increases the value of the property 

3. I'd factor in some move-outs during the lease renewals because some current residents might not care about the new AC and will look for something cheaper with the window units 

4. I'd make sure to factor in ongoing repair costs to your new central air units and budget for that as a new expense line item