Rental Properties: How does Heating and A/C Affect Your ROI?

Whether you’re just starting to think about stepping into role of landlord or you’ve been doing it for decades, air conditioning maintenance needs to factor into your long-term management plans. Proper, well-functioning AC and heating systems are essential to providing what the government calls a “livable space”. They are also critical to your return on investment (ROI).

There are two main items that will determine how profitable your rental property becomes over time: the time of occupancy vs. vacancy and the cost of maintenance. If your property is vacant, you don’t make money. If your property is occupied but costs a fortune to maintain, you don’t make money. When you have a renter and a well-running property, you do make money. It’s that simple.

Vacancy and occupancy are often dictated by the property’s location, its condition and the rental price. Each of these factors weighs heavily on a renter’s mind as he chooses a place to live. They will affect his decision to stay for the long-term or move out quickly.

If occupancy/vacancy is one side of the ROI coin then maintenance costs must be the other. You have to keep up the home’s condition in order to keep quality tenants and to keep the home from falling apart. This of course includes air conditioning maintenance as well as heat and all the other operating systems like plumbing and electrical.

Those systems are extremely important to potential tenant and he will take note if anything is amiss. Smart potential tenants will notice right away if the temperature inside the dwelling isn’t right. Even if they aren’t observant during the tour, they will surely notice after living there a while! Poorly maintained heating and air systems don’t keep the temperature comfortable, they aren’t energy efficient and they break down. That’s how you lose a good tenant!

Air conditioning maintenance will help keep your rental property occupied, help draw better quality tenants and it will cut down on the cost of repairs and energy usage. Keeping your rental property’s units in good shape will improve your ROI. You’ll see the difference every time you take the rent checks to the bank.