HVAC Contractor Needed

Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes

I'm replacing the HVAC system in one of my rental properties (1,100 sq. ft. single-family home) in the Crest Hill, IL area and would appreciate some input.

After researching equipment, I've narrowed my preference to a Goodman system based on the balance of cost, reliability, and parts availability. Now I'm focused on selecting the right contractor.

For those of you managing rentals:

How did you find your go-to HVAC contractor?
Do you purchase the equipment yourself, or let the contractor supply it?
If you're in the southwest Chicago suburbs, are there any contractors you've had consistently good experiences with?

Thanks in advance for sharing your experience.

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Ed O.

Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes

1mo

Finding a good contractor often involves sifting through some bad ones along the way. Still happens to me after 25 years in the game.

I start by asking the good contractors I already work with for a referral. We need fair pricing and good, honest service work. Easier said than done. If I do not get good referrals, I will ask other peers in the local market and also check with supply houses.

As far as HVAC, any reputable company would likely laugh at someone wanting to provide their own equipment for an install. They're generally loyal to one brand and know that brand's products very well.

My experience with Goodman. Fifteen years ago it was my favorite. Now, I despise it. In our experience, their equipment has not performed as well as it used to and we specifically avoid it at all costs. Rheem and Heil are two of the more commonly preferred brands from the different vendors we work with. They'll all tell you the brand they use is the best. Make sure you have the install cost in writing / text from all of the vendors you have price. Ask them how responsive they are when it's 100 degrees outside and they have 25 calls in the pipeline - will they work late to make it to your job, or do they all punch out at 4pm? We've had great luck with smaller 2-8 employee shops. Companies well marketed with super clean, well lettered trucks are never a good deal and often will charge max prices to anyone that will pay them.

Good luck.

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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
1mo
I'd be looking at reviews and asking other real estate investors. I'd get 2-3 bids. If it's an emergency job, I'd go two bids.
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- Alison Robinson
  OP
  Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes
  1mo
  Quote from @Aaron Zimmerman:
  
  I'd be looking at reviews and asking other real estate investors. I'd get 2-3 bids. If it's an emergency job, I'd go two bids.
  Thanks, Aaron. I appreciate the advice. My plan is to get at least three bids and use a few different sources to find them. I own a small rental portfolio in the Joliet/Crest Hill area, so I'm hoping to find a contractor interested in building a long-term relationship rather than just completing a single installation.
  1 Reply
Ed O.
Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
1mo
Finding a good contractor often involves sifting through some bad ones along the way. Still happens to me after 25 years in the game.
I start by asking the good contractors I already work with for a referral. We need fair pricing and good, honest service work. Easier said than done. If I do not get good referrals, I will ask other peers in the local market and also check with supply houses.
As far as HVAC, any reputable company would likely laugh at someone wanting to provide their own equipment for an install. They're generally loyal to one brand and know that brand's products very well.
My experience with Goodman. Fifteen years ago it was my favorite. Now, I despise it. In our experience, their equipment has not performed as well as it used to and we specifically avoid it at all costs. Rheem and Heil are two of the more commonly preferred brands from the different vendors we work with. They'll all tell you the brand they use is the best. Make sure you have the install cost in writing / text from all of the vendors you have price. Ask them how responsive they are when it's 100 degrees outside and they have 25 calls in the pipeline - will they work late to make it to your job, or do they all punch out at 4pm? We've had great luck with smaller 2-8 employee shops. Companies well marketed with super clean, well lettered trucks are never a good deal and often will charge max prices to anyone that will pay them.
Good luck.
1 Reply
- Alison Robinson
  OP
  Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes
  1mo
  Quote from @Ed O.:
  
  Finding a good contractor often involves sifting through some bad ones along the way. Still happens to me after 25 years in the game.
  I start by asking the good contractors I already work with for a referral. We need fair pricing and good, honest service work. Easier said than done. If I do not get good referrals, I will ask other peers in the local market and also check with supply houses.
  As far as HVAC, any reputable company would likely laugh at someone wanting to provide their own equipment for an install. They're generally loyal to one brand and know that brand's products very well.
  My experience with Goodman. Fifteen years ago it was my favorite. Now, I despise it. In our experience, their equipment has not performed as well as it used to and we specifically avoid it at all costs. Rheem and Heil are two of the more commonly preferred brands from the different vendors we work with. They'll all tell you the brand they use is the best. Make sure you have the install cost in writing / text from all of the vendors you have price. Ask them how responsive they are when it's 100 degrees outside and they have 25 calls in the pipeline - will they work late to make it to your job, or do they all punch out at 4pm? We've had great luck with smaller 2-8 employee shops. Companies well marketed with super clean, well lettered trucks are never a good deal and often will charge max prices to anyone that will pay them.
  Good luck.
  Thanks, Ed. I appreciate the detailed response. It sounds like we're approaching it similarly. I've taken three paths so far: asking other investors here on BiggerPockets, having my partner check with local HVAC supply houses for recommendations on owner-operated contractors, and I'm reaching out to a few small HVAC companies directly.
  I agree that smaller owner-operated shops often provide the best value. We had great success with that approach on a recent window replacement project.
  Your comments on Goodman are interesting. I've generally heard positive things from landlords because of the balance of price, parts availability, and ease of service, but I don't have enough firsthand experience to be committed to any one brand. I'll certainly keep an open mind if a contractor makes a strong case for Rheem or Heil.
  
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
1mo
Hey There @Alison Robinson - I've got a great Chicago HVAC installer that I can recommend. He does quality work, and he is not a huge outfit, so he charges a reasonable price. Feel free to PM me, and I can provide their contact information :-)
You won't be able to buy any of the equipment yourself because of the hazardous materials. The distributors typically sell only to HVAC companies... you might find someone who will let you pay on their behalf, though.
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- Alison Robinson
  OP
  Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes
  1mo
  Quote from @Jonathan Klemm:
  
  Hey There @Alison Robinson - I've got a great Chicago HVAC installer that I can recommend. He does quality work, and he is not a huge outfit, so he charges a reasonable price. Feel free to PM me, and I can provide their contact information :-)
  You won't be able to buy any of the equipment yourself because of the hazardous materials. The distributors typically sell only to HVAC companies... you might find someone who will let you pay on their behalf, though.
  Thanks, Jonathan. I appreciate the offer. I'll send you a PM. I'm looking for a quality, reasonably priced contractor interested in building a long-term relationship with a rental property owner. Thanks again for taking the time to help.
  1 Reply
Josh C.Pro Member
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
1mo
The new 454 stuff is so expensive now, really sucks. In my area a new system (furnace and outdoor ac unit) would run 7-10k depending on lots of things.
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- Alison Robinson
  OP
  Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes
  1mo
  Quote from @Josh C.:
  
  The new 454 stuff is so expensive now, really sucks. In my area a new system (furnace and outdoor ac unit) would run 7-10k depending on lots of things.
  Thanks, Josh. I agree—the increase in replacement costs over the past decade has been significant. That's exactly why I'm spending more time on the contractor selection process instead of just collecting bids.
  My approach has been to get recommendations from other investors, check with local HVAC supply houses for owner-operated contractors, and talk directly with smaller companies that are building their customer base. I'm hoping that process leads to better value rather than simply accepting today's market pricing.
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- Josh C.Pro Member
  Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
  1mo
  @Alison Robinson. The 454 is only 18 months old or so and jumped everything like 25% overnight. Good luck but I'd be surprised if you get it cheaper than $7500.
  1 Reply
Alison Robinson
OP
Rental Property Investor · Joliet, IL · Member since 2013 · 98 posts · 47 votes
1mo
Thanks Josh, I had to do a little research on R-454. From what I read R-32 is still an option. Once I find a contractor I'll have a better idea of my choices. The first contractor quoted a price much higher than $7,500.
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