Do you want to install a cooling and heating system in your property? Do you want to know about the best options available in the market? How about the cheapest or most cost-effective air conditioner options? If yes, then you have come to the right place. As the main purpose of this article is to make you understand about different types of heating and cooling options for landlords available in the market.

The internet can be confusing as there are many options that are available there. A person can get confused about what option to choose. This is where this article will help. Therefore, here I have discussed several topics related to heating and cooling options for rental properties along with the number of other things from my experience as a real estate investor.

What is a Cooling System?

First of all, let’s understand what is the meaning of a home cooling system.

In simple terms, a cooling system is used to remove the heat from the room. As a result, the temperature drops, and the room becomes pleasant.

The cooling systems are commonly used in countries with warm temperatures. In order to fight the high temperatures, the installation of the Air Conditioners (cooling system) in a rental property is a must in countries like Australia.

What is a Heating System?

Now let’s understand what is the meaning of a heating system.

A heating system is used to remove the chill from the room. In this way, the temperature becomes warm, and the room becomes pleasant to live in.

A heating system is used in the countries with cool temperatures. A heating system option is sometimes also available with the Air Conditioners with cooling systems.

In Australia, having a heating system in a rental property is not a must. But, of course, if the property comes with a heating system, it will be more appealing to tenants.

Pros of Cooling Systems

  • The room becomes comfortable to spend time in.
  • Addition of a cooling system is a good investment.
  • It is a must have a cooling system in an investment property in countries such as Australia.

Cons of Cooling Systems

  • It might need replacement after a few years.
  • Some cooling systems can be expensive to install and run. For example, a reverse cycle air conditioned cooling system is much more expensive than an evaporative cooling system.

Pros of a Heating System

  • The temperature of the room becomes warm.
  • A good investment for your house, but it is not a must for a rental property in Australia.

Cons of a Heating System

  • You might have to replace a heating system after a few years.
  • Heating will raise the electricity bill of your house considerably compared to cooling.
  • People generally don’t think the heating system is necessary comparing to the Air Conditioners (i.e. cooling).

Tip: We previously covered how to raise capital for investments.

Basic Types of Air Conditioners

There are 3 basic types of categories of Air conditioners. Their names are mentioned below:

1. Stand-alone AC Central Units

It is a category of an air conditioner that comes in a single central unit. All the components of the Air Conditioner are enclosed inside a single unit located centrally and then pump cool or hot air through a duct system to every room/hall.

2. Easy to install units

They are easily installed. There are no separate outdoor units attached to them.

Some examples of Single Unit air conditioners are: Window Air conditioner, Portable Air conditioner etc.

3. Split-System AC Unit

As the name suggests, the unit Air Conditioners are those whose one unit is installed insider the room and the other is installed outdoors. They are seen by the outside.

The inside unit is used for cooling the temperature while the outdoor unit ejects the heat. If you want to install a split-system unit in your rental house, you will need to hire an installer as the installation is not simple as a box window unit.

This type of unit is further divided into types such as Split Air Conditioners and Hybrid Air Conditioners.

Air Conditioner Options

There are many sub-types of Air conditioners available in the market other than the above mentioned broader types or categories.

Some of them are mentioned below:

1. Window Air conditioners

These types of air conditioners are used to cool a small area or a room. But if you want to cool the whole space, you will need to buy a bigger Window Air Conditioner.

Window air conditioners are favorite among those people who have small rooms. They are the most common type of Air conditioners. All of the components of the Window Air Conditioners are enclosed in it.

The window air conditioner has two sides, i.e. indoor and outdoor. The indoor side throws the cool air in the room while the outdoor side ejects the heat.

The window air conditioner is installed near the window by making a hole inside the wall.

During the service, in order to increase the cooling of the air conditioner, the filter is taken out and cleaned.

These air conditioners, like most of the other units, are controlled by a remote.

Advantages of Window Air conditioners
  • The cost of installation is low as compared to the other types of air conditioners.
  • Window units are a very low maintenance option.
  • They are very durable.
  • They are one of the best options for rental properties of low to medium-end markets.
Disadvantages of Window Air Conditioners
  • They create a lot of noise.
  • Not a very smart option.
  • They may not have a very long wire, so they must be installed near power input.
  • Not a great option for medium to high-end rental properties.

2. Smart Air Conditioners

They are enabled with many useful functionalities and integrations.

Usually, these air conditioners are controlled by Wi-Fi connection and an App that can be downloaded in the smartphones.

The air conditioners are available in different forms such as Window Air Conditioners, Portable Air Conditioners and Mini Splits.

These types of air conditioners come with many functions such as comfy mode, geofencing and weekly scheduling. By using these features, you can get the benefit of energy-saving and comfort.

Advantages of Smart Air conditioners
  • These air conditioners work greatly for saving energy.
  • They are very convenient.
  • Fits well modern technology and sophistication
Disadvantages of Smart Air Conditioners
  • They are very expensive to purchase and have a very high installation cost.
  • Wi-Fi is necessary to operate them.

3. Portable Air conditioners

These types of air conditioners are very similar to the Window Air conditioners. All of the components of the portable air conditioners are enclosed in a single unit. Unlike the window Air Conditioner that can’t be moved, this Air Conditioner is easily movable. You can place it wherever you want. But it should be placed near a window so the heat can be ejected outside.

These air conditioners are generally installed where other types of air conditioners cannot be installed.

Advantages of Portable Air conditioners
  • They can be easily moved wherever there are a window and a power socket.
  • They do not even have to be installed.
  • They are great for temporary usage.
Disadvantages of Portable Air conditioners
  • They will not work greatly in large rooms.
  • They are very noisy when they are working.

4. Central Air conditioners

They are specifically designed to cool large spaces and areas. These the reversed-cycle
system, the air is regulated through the ducts that are already installed in your home, this system is also known as a ducted system.

The Central Air Conditioner system is a combination of two units that are split and an outdoor unit consisting of a condenser and a compressor. The outdoor unit ejects the heat while the indoor unit is used for throwing air.

Cooling-only evaporative systems can also be considered as central air conditions. That is because they are also ducted systems.

Advantages of using Central Air Conditioners
  • The whole house will have the same cool temperature.
  • They are powerful, so it takes very little time to cool the whole house.
Disadvantages of using Central Air Conditioners
  • They are very expensive to install, so most real estate investors hesitant to install them in low to medium end rental properties
  • The electricity bill will be very high
  • In case of a problem inside the duct, the system will stop working.

5. Hybrid Air Conditioners

This system is used for heating and cooling. It works automatically according to the outside temperature. Whenever the outside temperature is cold, the system will work to warm up the temperature, and whenever the temperature is warm at the outside, the system will work to spread cool air inside the house.

This system uses electricity and the gas furnace.

Advantages of Hybrid Air Conditioners
  • This is a very cost-effective way of cooling or heating the house.
  • Lower carbon footprint.
Disadvantages of Hybrid Air Conditioners
  • The cost of installing the system is very high.
  • The maintenance aspect is difficult as well.

6. Split Air Conditioner

This is the most common type of reversed cycled (i.e. cooling and heating) air conditioner for rental properties. This Air conditioner has an indoor unit which throws cool air into the room while the outdoor unit ejects the heat and run the compressor.

They are slightly expensive than window air conditioners, but the extra cost is worth the modern look it adds to a rental property.

Advantages of Split Air Conditioner
  • The Split Air Conditioners are very easy to install.
  • They do not consume much energy.
Disadvantages of Split Air Conditioner
  • The air filter needs to be cleaned after a few seasons.

What is a Good Air Conditioner for a Rental Property?

Buying an air conditioner for a rental property depends on whether you are a landlord or a tenant.

For the Landlord

The good Air conditioner for a rental property from the perspective of the landlord will the one with the low initial cost. From landlords point, it doesn’t matter how much energy is being consumed. For him/her a good Air conditioner will be the one that works greatly within the place where it is being installed.

Another thing, that is very important is the durability factor of the Air Conditioner. The Air Conditioner should be durable enough, so that the landlord doesn’t have to pay for its repair.

For the Tenant

Now from the perspective of the tenant, a good Air conditioner will be the that doesn’t consume much energy and doesn’t require very high maintenance.

Given tenants are not allowed install any equipment in a rental property, tenants will eventually need to stick with portable air conditioners to cool or heat areas that’s are not currently serviced according to the tenancy agreement.

What is a Bad Air Conditioner Investment for a Rental Property?

Similarly, a bad air conditioner will be different from the perspective of the landlord and a tenant. Because, they both require different things from an air conditioner.

For instance, a bad air conditioner would be the one which has high installation cost for the landlord. It won’t be beneficial to a landlord in any way. For example, high tech hybrid or smart ducted reverse cycle units. Also, some brand is considerably expensive than others, so sticking with an expensive trendy brand with no added value for the extra price is in vain too.

On the other, a bad option for a tenant would be the one which has high maintenance and consumes high electricity.

Cheapest to Run and Maintain vs. Cheapest to Install – What You Choose For an Investment Property?

1. Cheapest to Run Air Conditioners

There are many options available in the Air conditioners market that are energy saving. Some of them are mentioned below:

Installing a Ducted Air Conditioner for a Rental Property

  • For a rental property, it is a great option, because it is very durable.
  • The monthly cost of electricity bill will be very low, so that is a plus point for tenants.

Installing a Split Air Conditioner

  • Installing a split air conditioner is a good option if you want to save some money initially without sacrificing the appeal. It is a very energy-efficient option.

Installing a Hybrid Air Conditioner

  • Installation of a Hybrid Air conditioner is very popular because they are a cost-effective option. They are also an excellent option for long-term usage.
  • The cost of a Hybrid Air Conditioner could be high.

2. Cheapest to Install Air Conditioner Options

Window air conditioners

  • The installation cost of installing a Window air conditioner is very low. That is why they are quite popular among rental properties in low-end markets.
  • The cost of a Window Air conditioner is around $200 to $600 US dollars.

Portable Air conditioners

  • Just like Window Air conditioners the initial cost of Installing a portable air conditioner is very low.
  • The Portable air conditioner’s cost is about $300 to $800 US dollars.
  • However, property investors are not recommended installing them in rental properties due to their portability. Tenants or their visitors can easily steal them.

Floor mounted Air Conditioners

  • Floor mounted air conditioners is another option on the list. The cost of installing it is low.
  • The price of the floor-mounted Air conditioner is around $200 to $800 US dollars.

3. Expensive Options of Installing an Air conditioners

There are many options for air conditioners that are very expensive to install. Some of these options are listed below:

Central Air conditioners

  • The Central Air conditioner may be a popular choice, but it isn’t certainly cheap.
  • The cost of a Central Air conditioner is around $3000 to $7000 US dollars for five duct system.

Hybrid Air conditioners

  • The initial cost of installing a Hybrid Air Conditioner is very high.
  • The cost of a Hybrid Air conditioner is around $600 to $3000 US dollars.

Split Air conditioner

  • The cost of Split Air Conditioner is around $600 to $2000 US dollars.

4. Expensive to Run Air conditioners

The old school Air conditioners are generally those that are expensive to run. Their initial cost may be low, but they are certainly proving much more costly in the long run.

Some of these Air conditioners are mentioned below:

Running cost of Window Air conditioners

  • The Window Air conditioners are very cheap to install, but as mentioned above, they could consume a lot of energy, especially for heating.

Running cost of Portable Air Conditioners

  • The portable Air Conditioner are cheap, but just like Windows Air Conditioners, they could consume a lot of energy, especially for heating.

Best Air Conditioners Options For Landlords and Rental Properties

A landlord needs to look at his budget and area or the market the rental property located. Only then he can decide about what would be a better choice for Investment in rental property.

There are a variety of cooling and heating options available in the market. Some of these options are mentioned below:

1. Best Air Conditioner for Apartments

The apartments are generally small. The most suitable air conditioners would be those that are designed to work in a small space. Here, mentioned are some of the options best suited for apartments.

Window Air Conditioners

Window Air Conditioners are small in size. So, it will take a lot of time for them to work, if they are installed in a large space. That is why they are a preferred choice for apartment units. They will work efficiently there. So, if you have a small space, do consider investing in a Window Air conditioner.

However, remember, a split system would be a better option if the apartment is located in a medium to the high-end rental market.

Split Air Conditioners

Split Air conditioners are another popular choice for apartment units. Because, it is very difficult to cool the temperature of the large space and from multistory units. The throw of the air is limited to a specific area.

For instance, if you install a split air conditioner in your home, they will only work to decrease or increase the temperature of the area where they are placed. That is similar to a window air conditioner.

Portable Air Conditioners

Portable Air Conditioners are also a great option for an apartment unit. You can move them around anywhere you want. They may be small, but they work very well in a small space. So, they are a great choice for small spaces, especially for tenants.

Landlords are not recommended installing portable air conditioner units in their rental properties.

2. Best Air Conditioners Options for Houses

The home is usually a large space compared to an apartment. So, the type of system that will work best in the home would be the one which can decrease the temperature quickly. There are a lot of options available in the market specifically for these.

Ducted Air Conditioners

These Air Conditioners are a popular choice for large homes. The cool air comes through the ducts that are all over the house. So, the temperature of the whole house will be chilled in no time.

Hybrid Air Conditioner

Since Hybrid Air Conditioners have both the option of heating and cooling so, they are a very popular choice for larger homes (high-end markets).

By installing the system, you won’t have to worry about separately installing a heating system. So, this may be a good option for a rental property with a high yield of return in investment.


Thus, buying an Air Conditioner that is suitable for the property is a very important decision. You will have to look at the different perspectives such as how much are you willing to invest, type of rental property market, what type of space you have or what design is suitable for you. They are those factors through which it is ultimately decided what type of Air Conditioner will work best for your space.

So, be careful when you are making the decision. Otherwise, you will not be able to get the maximum benefit from your system. For instance, if you install a small in a larger place, it won’t work. So, look at all the options. Read some reviews when you are buying the Air Conditioner. That can also be very beneficial. Only then you can make the right decision.


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