Hello everyone. I know that I spend a lot of time talking about cost and what what’s worth saving your pennies on and what’s not, especially when it comes to installing new equipment. But it’s summer time, and though not always desirable for island businesses, it can be a time to make some changes, catch up on repairs and anything else that may have been pushed to a later date during the busy season.
Today I want to discuss is how to select a/c equipment for a rental property, and how efficient it should be. Let me start out by saying that paying guests that we rent our homes too are not always as considerate as we are when it comes to paying attention to energy bills.
When the need arises, I know that the temptation is to install the most economical equipment available, which usually ends up being the least efficient – it’s also known as the “cheap stuff.” The reason we are tempted to do this is because of our bottom line. It’s understandable, we have these properties as profit streams and if we spend high dollars on upkeep it cuts into our profits. This is where the title of this article comes into play. If we opt to install the least efficient equipment, it will cost less at the register, but the costs usually end up higher over time. Less expensive equipment does not hold its efficiency as long, resulting in higher energy bills. It breaks down more often which can be even more costly once we have to pay for the repair, risk lost rental income and possible future bookings and referrals by that guest. Inexpensive equipment usually also comes with a “softer” warranty. Since the equipment lasts for 8-12 years on average, you will be stuck with this decision for a very long time.
After you take all those things into consideration, the bottom line is starting to not look so good. So, the long and short of it is: spend some time talking with your service provider. Find out what your options are and what his/her suggestions are. Service providers often have financing plans for new equipment. Make your decision based on all the facts and not just the cheapest price.
Thanks as always for reading and keep cool this summer,
Bryan Hayes, along with his brother Todd, is a co-owner of a Sanibel Air Conditioning company on Sanibel, FL. They also own and operate an island-based electrical service company Sanctuary Island Electric, Inc. Bryan can be reached at Bryan@Sanibelair.com