Are Heat Pumps the Solution Landlords Need?
With the raging heat of summer persisting this summer pushing many tenants to their physical limits, there is a lot of interest in better ways to cool rental homes.
If the world’s climate is heating up, then the summers ahead may be more cruel to tenants, especially those who have no home cooling systems.
While HVAC systems are the first cooling solution for homes that come to mind, another technology called heat pumps may be a better alternative for many landlords.
The New Era of the Heat Pump
Heat pumps are a different and more energy-efficient technology which may lower your power bills and maintenance costs. Given the rising cost of electricity in most cities, heat pumps for residential properties can be a boon to US, Canadian, UK, German, and Australian multifamily landlords.
“Air conditioning equipment now draws 70% of peak electricity use during heatwaves and heat domes according to the International Energy Agency.”
Technology Innovation to the Rescue!
Tenants eager to avoid high electric power bills and sweltering heat may be willing to pay more for a home with heat pumps, especially if they charge their electric vehicles there. There are also benefits for apartment/multifamily owners too in preventing your building’s electric power infrastructure from a damaging overload and in reducing demand on the local power grid.
In many locales, as you may know, electric service charges are much higher during the day, and when temps hit 100F, it’s hard for tenants not to use their A/C. For seniors, it’s a necessity.
Let’s explore heat pump technology, its performance and practicality to understand if it’s what you should be adopting (a cost-cutting, tenant-serving, and asset-improvement investment).
“Heat pumps are now cold-rated and so efficient they offer a competitive advantage over natural gas in a sealed, insulated home. This creates a business opportunity for rental housing early adopters. But like gas boilers, heat pumps have a host of technology and installation considerations. — Masslandlords.net.
How Heat Pumps Work with This Old House
Plumbing and heating expert Richard Trethewey explains the basic principles of how a heat pump works with host This Old House TV show host Kevin O’Connor.
What’s the Difference?
The main difference between them is how they operate. Heat pumps move heat from one area to another, whereas air conditioners only remove heat from a room by forcing warm air outside. — thisoldhouse.com.
Some A/C systems may be less expensive, however they don’t work in winter to heat a home, as a heat pump can. Thisoldhouse.com says air-source and mini-split heat pumps are the least expensive to install ranging from $4,000 to $8000.
However, inexpensive heat pumps can be purchased for home or apartment windows, where permitted. And there are heat pumps for swimming pools as well. See more heat pumps for $3000 to $5000.
Goodman Heat Pump. Screenshot courtesy of Amazon.com
Larger, higher-capacity systems are available at the level you need for your living spaces.
Cooper & Hunter Large Capacity Heat Pumps. Screenshot courtesy of Amazon.
Heat Pump Brands to Look For
Senville, Frigidaire, Honeywell, Carrier, Bosch, Trane, Danby, are other well-known heat pump brands to look for depending on the size of your living space. It’s important to keep in mind, that if you’re in geographic zones with extreme heat or cold, that smaller systems may lack capacity. Window models are okay for single rooms.
Senville Large Capacity Heat Pumps. Screenshot courtesy of Amazon.com
3 Types of Residential Heat Pumps
There are three main types of heat pumps connected by ducts: air-to-air, water source, and geothermal.
The type most used in residential settings is the air source heat pump. It transfers hot air house outside the house. Modern air source heat pumps can reduce your power bills by up to 50% in winter compared with conventional furnaces and electric baseboard heaters. The units also dehumidify better than A/C units resulting in additional comfort for tenants.
They can work for ducted home ventilation systems or ductless systems for homes without a central HVAC or venting piping.
For larger multifamily applications, it is possible to use geothermal heat pump systems (ground or water sources) units for exceptional cost cutting (30% to 60% power saving). These systems however are expensive because of the installation of piping in the ground.
Another type is Absorption Heat pumps which utilize heat or thermal energy rather than mechanical compression technology systems. These may be used in multifamily applications.
Advanced features you might look for are 2-speed compressors which allow the system to work more closely to the current outdoor temperature. These are normally only used in larger houses and can allow different temperature settings for different rooms. The variable speed controls in these systems keep air moving efficiently for better home comfort.
Additionally, the AHP units may use a desuperheater which can heat water more efficiently than a common home water heater. Heating and cooling water are additional functions which HVAC systems don’t provide.
7 Key Advantages of Heat Pumps
- works in both winter and summer
- units that can be powered by electricity or natural gas
- may also cool or heat water in a home
- offers substantial electrical cost savings
- protects your building systems from overload
- reduces demand from the local power grid
- tax credits and incentives available to reduce the full cost of units
Installation and Maintenance are Factors Too
The full cost and installation logistics of full house and apartment building heat pumps are complex and you’ll need to speak to a local contracting company to see if it fits your budget. On a smaller scale for renters, a window-installed heat pump may be an ideal solution.
With electric vehicle (EV) sales quickening and the push to alternative power generation, electricity may become increasingly costly. Landlords and tenants both will need to innovate to avoid the cost stress associated with the electric power revolution. Current infrastructure is not designed to deliver or cope with that level of consumption, especially in the high housing density plans driving urban development.
And in addition to that threat, is the fact that many cities and apartment buildings have aging electrical service infrastructure which itself could break down in the coming years. Landlords will have to deal with the threat of tenants powering up their EVs and using their aging, less efficient air conditioning systems together.
Having to repair and replace electrical systems in properties is a huge cost that could affect rental property ROI. This also means lower asset valuations because of it.
All in all, investigating heat pumps for your rental properties is time well spent. There may be useful systems at a reasonable price point you can handle. We hope you’ve enjoyed our primer on the subject and we wish you well with your energy reduction plan.
If you have adopted a heat pump system already, we’d be thrilled to hear of your experience. Let us know in the comment section.
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