What is a Heat Pump?

I sold a building a couple of years ago that consisted of 10 townhouse-style units, two stories over 1000 square feet each. I was surprised to find out that my client heated and air-conditioned the units with single-unit heat pumps. The tenants were happy and the units ran efficiently. Incidentally, the building sold in 3 days. These devices were also less expensive to replace than alternative solutions. The next time I needed to replace a unit, I tried a window-mounted air conditioner/heat pump and I have been extremely happy with my decision. I have decided that I will be using heat pumps in all of my units, if possible, in the future exclusively.

WHAT IS A HEAT PUMP
A heat pump is a device that takes heat from the air or ground around a building and increases it to a temperature that keeps the apartment warm inside. There are outside-mounted units that have multiple outlets and there are window-mounted units that are combination air conditioners and heat pumps. For the sake of this discussion, we are referring to the window-mounted units.

HOW MUCH DO THEY COST?
It depends on the size. You need about 1000 BTUs (British Thermal Units) per 100 square feet. I purchased a 14000 BTU with an air conditioner for around $600. at Home Depot. I was replacing a broken air conditioner, and for a little more money, I was able to provide heat and air conditioning all in one compact unit.

WHAT ARE THE DISADVANTAGES?
To begin with, the unit will be more expensive than a window air conditioning unit. Being portable may not be great, as a tenant could take the unit when he or she leaves. (Of course, that is what security deposits are for). I have installed two of these units so far and my tenants and I have been very pleased. It could well be something to consider the next time you get a call from a tenant with an air conditioner that has quit and maybe an older wall heater. I think it is a positive for resales as well. You may want to try one of these units in your building.

“It is an action that creates motivation.” Steve Backey

What we at PRS PROPERTIES CAN DO. We can recommend experienced licensed contractors who can perform any repairs or installations you may need. We can also look at your building for other changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.

Remember – KNOWLEDGE IS POWER!