How much does Window Unit A/C hurt your rental prices?

Question

Hello everyone, there is a duplex in the NorthWest Chicago suburbs that I'm very interested in, listed for 250K, rents total for about 2500-2600/month combined for both units.  Its a complete remodel (don't know about electrical/plumbing yet), building is 100 yrs old.

My only concern is it doesn't have central A/C, would have to get window units.  How much does this effect the $$$ monthly rent you can charge and hurt finding tenants?  Its a "C-class" neighborhood, average home price is probably around 250K, older smaller town.

John Warren · Answer

@Bruce Woodruff and @Scott Mac you have to be careful with mini splits in Chicago since the temperature can get below the operating minimum for these systems to heat.... maybe if you are using it as a supplemental heater it would be ok? I did some basic research into these a few years ago and decided to take a pass. We had a really fun stretch this year where the temps were below zero for about a week.

Kevin Coleman · Answer

@Elbert O. I just sent my thoughts to you DM.

Jennie Berger · Answer

@John Warren This is SO good to know! I was considering installing these in a 3-unit building I'm trying to buy--as a way to avoid duct work, dropped ceilings and/or soffits--but I didn't know this tidbit. Now I'm looking for other options to get the boiler, radiators, and window a/c units out... Any other advice? :)

Thanks for sharing!

Paul De Luca · Answer

I agree with @John Warren. Depends on where the property is but all else being equal in terms of finishes/amenities in a unit I don't think central AC vs window AC will have much of a difference in terms of rent.

JD Martin · Answer

I'm in Tennessee. It would be a deal killer here but it's hot down here too. Over the years I've been doing this expectations have also changed. My first rentals tenants were thrilled to learn I had CHA. Now tenants specifically ask me if the old wall heaters have been disconnected in some of our homes as they expect virtually anything to have CHA. However, I generally am renting B properties so that does make a difference, but even C tenants expect to get AC down here. In Chicago, it may not be as pervasive. I spent one summer in Chicago (Great Lakes, actually) when I was in the Navy and I thought it was hot and miserable (our barracks had no AC).

Bruce Woodruff · Answer

Is there a possibility of adding a mini-split system? I know, more expensive...but definitely a step up in comfort and looks. Just a thought....

I don't think window units would ruin your deal, I'd rather have window units than no cooling ability at all, that's for sure...

John Warren · Answer

@Steve Balinski almost none of my buildings have central AC. Under $1300-1400 per month, it really isn't expected. I also don't think it is something you need to provide in a C class area as your tenants will take care of this themselves with window units.

John Warren · Answer

@Steve Balinski I am curious now. Did you move forward with the duplex or no?

Richard F. · Answer

Aloha,

You really need to also consider the cost of operation for the Tenant. There is a wide variation in efficiency from one brand/model to another. If window units are over/under sized, the operational cost will be further affected. You need an experienced installer to look at the options for running ducting for central units, which will be significantly more efficient than window units...but also need to be properly sized.

Whether window, split, or central, plan on specific periodic maintenance/cleaning to keep them operating at their best, and prevent breakdowns in the worst part of the season.

A final consideration regarding window units, you need to ensure they are properly and securely installed and condensate drains are routed away from the structure. Improper or no drainage system can result in condensate penetrating your window sill/trim and/or leaking to the interior of your structure ultimately causing extensive wood rot and other water related damages. They also should not be allowed to drain onto a sidewalk or other walking surface creating a slipping hazard; or be located in a hazardous location that can cause injury to unsuspecting pedestrians, such as protruding low over a walkway.

How much does Window Unit A/C hurt your rental prices?

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