Heat Pump AC unit replacement

[Christopher Stewart]

I've got a 3100 foot SFH rental with two different Heat Pump AC units, I think a 3 and 4 ton units. One of the units is about 15 years old and now needs a 1200 repair. The other unit is working but it's 25 years old and I'm told by the AC tech that the air handler blower motor and assembly is starting to fail and will cost 2500$ to repair. So I'm already starting to consider impounding some money to save up for just replacing the whole unit. There are different price ranges for replacement of heat pump split units that range from 5k-12k. Of course the more you pay the more efficient the units are. Since I am not paying for utilities on the rental, is there any reason to replace with a higher efficiency unit. I can't imagine that's going to be a big enough selling point for a renter to justify the higher cost?

[Bill B.]

Zero advantage to better efficiency ac units for rental properties. See if you can get a discount buying when nobody else is  I’d be tempted to replace the 25 year old unit but the replacement may fail before the old one would have. I usually draw the line at 12 years old and a repair over $1,200.  Especially if it’s needed a Freon recharge before  

Another thing to consider is if you can find a small guy who will convert your system to the new Freon without replacing the furnace. Almost every big company will quote you $7-12k per system because they’ll change the air handler at same time.  (They’ll say they have to because the new systems use the new Freon and the old systems won’t work with the new Freon.). But that’s not true. My guy has replaced at least 6 or 8 units in the last 4 years. 

I buy the units directly from the wholesaler (3-4 tons) for $1600-$1800 and then he charges about $2,000-$2,200 for labor, Freon and clearing the system of the old Freon. $3,600-$4,000 all done.