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    Key takeaways


    • Technology advancements of HVAC in rental properties are seeing significant movements toward efficiency and sustainability.
    • Heating pumps, Smart registers, and home insulation are some of the promising HVAC that may take over in the future.  
    • HVACs are important in rental homes because it satisfies and retains tenant, saves energy, enhances indoor air quality, offers better property marketability, and complies with state and local laws. 


    In recent years, the rental industry has witnessed a significant shift towards prioritizing energy efficiency and sustainability. As the world grapples with the challenges of climate change and the increasing demand for comfortable living spaces, the future of HVAC (heating, ventilation, and air conditioning) in renting holds immense promise.

    Advancements in HVAC technology are revolutionizing the rental industry, offering numerous benefits to both landlords and tenants. In this Propcast blog, we’re going to discuss how the future of HVAC in renting is poised to deliver enhanced comfort and lower energy consumption.



    What the future holds for HVAC efficiency


    In this Propcast episode, Justin Lieberknecht shared some history of air conditioning and heating, as well as the current status of HVAC in the property management industry. But, the more interesting part of this episode is the future of HVAC and how it would affect renting in general.


    Heating pumps

    First on the list are heat pumps. Although they are efficient in today’s time, the problem lies in their inability to work at low temperatures. Standard heat pumps tend to lose their heating capacity when the outdoor temperature lowers. This requires owners to have a secondary source of heat, especially for properties in a colder environment.

    On a good note, when the temperature is above 50 degrees, heat pumps are “wicked efficient”, said Justin. So, to become the future of HVAC, there are initiatives to develop technologies that could improve its performance across all fuels at low ambient temperatures.

    “It’s this great system that can be used to just move heat inside and outside of the house,” added Justin. “If they can improve the technology where they don’t freeze and they can work at lower temperatures, then it doesn’t matter where the energy is coming from as much as it matters how it’s being moved.”


    Smart registers

    The way a smart register works is that it has a sensor in the room that watches the temperature. Once the temperature hits a certain level, it closes the register. Pretty simple, right? It’s efficient but it’s just starting to come to the market.

    The problem here is that it’s not yet fully integrated into the thermostats. So, it’s better to match it with smart thermostats.

    “I think smart registers and smart thermostats coupled together to kind of take care of the rooms that need heating and cooling and the rooms that don’t,” Justin explained. “The savings from this have a huge potential. It’s a massive way to make the HVAC more efficient with existing systems merely by managing the flow.”


    Home insulation

    How homes are built is our last piece for the future of HVAC efficiency. For example, dual-pane windows help stabilize the temperature inside your home as it directly transfers heat and cold in and out. Having dual-pane windows “massively increases the efficiency of windows,” Justin said. 

    Yet, this type of window is one of the worst spots for leaking in a home. So, there’s an undeniable room for improvement. “I do think they’re gonna continue to figure out ways to be more efficient in their window building,” Justin shared. There are different materials now, like fiberglass-like material, that can frame up the windows and are better at holding temperatures in and out.

    Generally speaking, there are tons of ways to improve HVAC efficiency and there are a lot of initiatives to do so. As we wait for results, let’s discuss in the next section the importance of HVAC in renting.


    Recommended: Cost of owning a rental property: What homeowners need to know



    Importance of HVAC in renting


    When it comes to renting properties, the importance of HVAC systems cannot be overstated. Landlords who prioritize HVAC systems not only meet tenants’ expectations but also create a competitive advantage in the rental market while safeguarding their legal obligations and reputation. So, without further ado, let’s dive into our list.


    Tenant comfort, satisfaction, and retention

    HVAC systems play a vital role in maintaining a comfortable living environment for tenants. Renters expect a well-functioning HVAC system that can provide adequate heating and cooling throughout the year. A reliable HVAC system ensures that tenants can enjoy a comfortable temperature and good indoor air quality in their rented space.

    A properly functioning HVAC system also contributes to tenant satisfaction. When tenants experience comfort, good air quality, and energy efficiency, they are more likely to stay in the property for longer periods or recommend the property to others. Good HVAC systems that meet tenants’ needs can lead to positive reviews, higher occupancy rates, and consistent rental income.


    Energy efficiency

    An efficient HVAC system can significantly impact the energy consumption of a rental property. Energy-efficient HVAC systems help reduce utility costs for both landlords and tenants. A well-maintained system can regulate temperature effectively, minimizing energy wastage and optimizing performance. Energy-efficient HVAC systems also align with environmental sustainability goals, making the property more attractive to eco-conscious tenants.


    Health and indoor air quality

    HVAC systems play a crucial role in maintaining healthy indoor air quality. Proper ventilation helps remove pollutants, allergens, and odors from the air, promoting a healthier living environment. An HVAC system with appropriate air filters can reduce the presence of dust, pollen, and other particles that may cause allergies or respiratory issues. Tenants value clean and fresh indoor air, and a well-maintained HVAC system helps provide that.


    Property value and marketability

    A rental property with a reliable and well-maintained HVAC system holds greater value in the rental market. Prospective tenants often prioritize properties with modern, efficient HVAC systems as they understand the benefits of such systems. An upgraded HVAC system can make a property more marketable, attracting quality tenants and potentially commanding higher rent.


    Legal compliance 

    In many states, like Arizona, Florida, Kansas, and Nevada, landlords are required to provide functional heating and cooling systems in rental properties. Failure to comply with such regulations can lead to penalties and legal disputes. Having an efficient HVAC system that meets the local building codes and safety standards ensures compliance, safeguarding both tenants and landlords.

    From tenant comfort and satisfaction to energy efficiency and legal compliance, HVAC systems have a far-reaching impact on the rental experience. Landlords who invest in reliable HVAC systems and prioritize regular maintenance not only enhance tenant retention and property value but also demonstrate their commitment to providing a comfortable and healthy living environment. By recognizing the importance of HVAC systems, landlords can create a positive rental experience that benefits both parties in the long run.


    Up next: Single-family rental loans



    Concluding thoughts


    The future of HVAC efficiency in renting holds great promise for a more sustainable rental industry. With the integration of smart technologies, you can provide tenants with comfortable living spaces while reducing energy consumption and environmental impact. The emergence of energy-efficient HVAC systems, coupled with remote monitoring and automation capabilities, empowers you to optimize energy usage, lower utility costs, and deliver a greener rental experience.

    By investing in energy-efficient HVAC systems and implementing smart building management systems, rental properties can attract environmentally-conscious tenants and differentiate themselves in the competitive market.




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