Ac improves living environments and increases property values by providing essential comfort and energy efficiency.
Today's rental market is as competitive as ever, and strategic amenities offer savvy landlords an undeniable advantage in the race for great tenants. Gyms, pools and built-in washing machines may seem like a natural win, but don't spend money on Whirlpool's latest deals just yet. Instead, consider the humble air conditioner, which consistently topped renters' wish lists in the latest survey from TurboTenant, an all-in-one rental property management platform.
Sweating an increasingly hot climate
To discover the most coveted equipment of 2024, in May, TurboTenant asked more than 3,400 renters across the United States to rank 10 popular rental characteristics. Across all demographics, air conditioning was the top priority.
It's no surprise why. According to the National Centers for Environmental Information, April 2024 was the warmest April on record. The bad news doesn't end there. Their report also states that April was the 11th consecutive month of record global heat.
Along with disaster preparedness agent Ready.gov's statement that the number of days of extreme heat (i.e., a period of at least two or three days with temperatures above 90°F and high humidity in most of the country) has tripled since the 1980s, the importance of
Air conditioning cannot be underestimated.
A respite from the increasing heat is no longer a luxury, but a necessity in many parts of the US. Home cooling is essential for long-term health and safety, particularly for at-risk populations like older Americans , although all generations of tenants classify it as their main rental service.
Refrigeration laws and their rents
There are no national laws regarding air conditioning in apartments; The closest legislation is the implied warranty of habitability, which varies by state and jurisdiction. However, a handful of state and local laws require homeowners to provide air conditioning, according to the Natural Resources Defense Council.
In 2020, Montgomery County, Maryland, passed a law requiring rentals to be equipped with air conditioning capable of maintaining internal temperatures of 80∞F or lower. Two southwestern cities, Tempe and Dallas, followed suit.
In May 2024, Governor Polis signed SB24-094 into law in Colorado, requiring landlords in the Centennial State to provide a cooling system to tenants.
Should homeowners provide air conditioning?
The short answer is that it depends on where your properties are located. The answer is probably yes for landlords who rent in warm climates.
Beyond the fact that summers are on track to get hotter, it's worth considering the financial benefits landlords can reap from adding cooling units to their rents, as well as how to offset installation costs.
After all, renters of all ages and genders cite air conditioning as their top amenity. If you can provide it to them without spending a lot of money, you can expect to see a healthy return on investment.
Consider taking advantage of local and national rebates tied to cooling systems. For example, Energy Star rebates may be a great option for you. According to EnergyStar.gov, this tax credit applies to systems purchased and installed between January 1, 2023 and December 31, 2032. You can claim up to 30% of the project cost for a maximum credit of $600.
By installing air conditioning in your rental unit, you can expect increased tenant interest and a shorter vacancy period across all tenant demographics, including age and gender. In other words, prioritizing tenant comfort in a warming climate can pay off big time without burning a hole in your pocket.
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