According to the U.S. Department of Energy, “each year in the U.S., three million heating and cooling systems are replaced and $14 billion is spent on HVAC services or repairs.”
Managing single-family rental (SFR) properties comes with unique challenges, particularly when it comes to balancing tenant satisfaction with property maintenance. One area that’s frequently overlooked but crucial for long-term cost efficiency is the maintenance of HVAC systems.
In single-family rentals, HVAC issues can be a leading cause of tenant dissatisfaction and result in costly, unexpected repairs for property managers. Implementing an hvac preventative maintenance program can drastically reduce these risks, saving both time and money. In this article, we’ll explore the significant benefits of regular HVAC maintenance for single-family rental properties and provide a few statistics that highlight the impact.
The High Cost of Reactive Maintenance in SFRs
Unlike multi-family buildings where systems can often be serviced in bulk, single-family homes have individual HVAC units. This makes the maintenance needs more fragmented and potentially more expensive on a per-unit basis.
When property managers or owners take a reactive approach to maintenance—only addressing HVAC problems when something breaks—they risk higher repair costs, extended tenant dissatisfaction, and even premature system replacements.
Our data shows that the average cost to repair an HVAC system ranges between $225 and $1,400 per incident, while a complete system replacement in a single-family rental can cost anywhere from $4,500 to $7,000. For owners of multiple single-family rental properties, these unexpected costs can add up quickly. In contrast, a tune-up with Lula costs between $99-$129 per unit bi-annually, a relatively small investment when compared to the potential cost of major repairs or replacements.
Key Benefits of Preventative HVAC Maintenance for Single-Family Rentals
Avoiding Costly Emergency Repairs
One of the most direct benefits of preventative HVAC maintenance is the reduction in emergency repair costs. The HVAC systems in single-family homes are often used heavily, especially in extreme weather conditions. If a system breaks down during a cold winter or hot summer, the costs for emergency repairs can be steep. In fact, HomeAdvisor found that emergency HVAC repair calls can be 50% to 100% more expensive than standard service calls due to overtime labor charges and parts scarcity.
In single-family rentals, these repairs often occur at inconvenient times for both the tenant and the property manager, causing further disruptions. Every property manager loves a Friday afternoon, “My AC is out” call?
Regular maintenance—such as inspecting the system for worn-out parts, cleaning coils, and changing filters—helps identify and fix small issues before they become large, costly problems. The U.S. Department of Energy estimates that preventive maintenance can reduce HVAC breakdowns by up to 95%, greatly diminishing the need for emergency repairs.
According to our 2024 HVAC maintenance data, 26% of preventative maintenance calls prevented an emergency HVAC call. That means 26% of preventative maintenance visits resulted in a diagnosis that would have shut down the system at some point. That doesn’t mean the other 74% of visits are useless, a well-maintained system has an increased lifespan. Seasonal HVAC maintenance is a silent savior that works beneath the surface. Let’s hop into a few of the other benefits.
Lowering Utility Bills
For single-family rental properties where the landlord covers utility costs, energy efficiency is paramount. Even in cases where tenants pay their own utility bills, high energy costs due to inefficient HVAC systems can lead to dissatisfaction and tenant turnover. Preventative maintenance ensures that the HVAC system is running efficiently, which can significantly reduce energy consumption.
However, by regularly servicing HVAC systems—such as cleaning filters, lubricating moving parts, and adjusting system controls—energy consumption can be reduced by 15% to 20%. This translates into lower utility bills for the property owner or tenant and less strain on the system.
Extending HVAC System Lifespan
HVAC systems are among the most expensive components of a single-family rental property. With proper care, most HVAC systems have a lifespan of 15 to 20 years, but neglecting regular maintenance can shorten that to as little as 10 years (which is right when the standard warranty period ends). Replacing an HVAC system prematurely can significantly impact a rental property owner’s finances and long-term ROI.