Why You MUST Get the Age of Every AC Unit During Due Diligence
When you're evaluating a multifamily property, one of the most overlooked — yet most expensive — systems is the air conditioning equipment. Far too many investors walk into a deal focusing on rent rolls, cap rates, and cosmetic improvements, while ignoring the mechanical systems that quietly drain cash flow year after year.
AC units are not optional comforts.
They are critical infrastructure that directly impacts tenant satisfaction, retention, insurance claims, maintenance expenses, and long-term asset performance.
This is why getting the accurate age of EVERY AC unit during due diligence is essential.
1. AC Units Have a Predictable Life Expectancy
Most air conditioning systems in multifamily properties last:
10–12 years in Florida’s climate
8–10 years if poorly maintained
Up to 15 years only if serviced consistently
If you're buying a 100-unit property and 60 condensers are already past their life expectancy, you're staring at a six-figure capital expenditure over the next few years.
Knowing the age lets you forecast actual CapEx, not guess.
2. Older Units Are Maintenance Magnets
As AC units age, expect:
More refrigerant leaks
Failing capacitors and contactors
Worn compressors
Reduced cooling capacity
Higher energy consumption
Short cycling
Older equipment doesn’t just fail more often — it costs you more every month in service calls and tenant complaints.
A property with aging HVAC will quietly eat your NOI alive.
3. Insurance Companies Now Care About Mechanical Age
In Florida, insurers are tightening underwriting on older AC systems due to:
Fire risks from failing electrical components
Water damage from clogged or failed drain pans
Mold growth due to inadequate cooling
Knowing the age upfront helps prevent surprises when your insurance carrier demands upgrades after closing.
4. The Age Can Affect Your Exit Strategy
Buyers in 2025 and beyond are far more sophisticated.
If half the AC units on your property are past life expectancy, the buyer will:
Demand a price reduction
Require a repair credit
Adjust their CapEx underwriting
Or walk away completely
Tracking age now protects your resale value later.
5. It Helps Forecast Actual Future Capital Needs
Replacing AC units is one of the largest predictable expenses in multifamily operations.
When you know the age of every unit, you can immediately estimate:
1-year CapEx needs
3-year replacement plan
5-year capital budget
True cost of ownership
This turns your due diligence into a data-backed financial strategy, not guesswork.
6. AC Age Influences Tenant Satisfaction & Retention
Nothing will drive tenant complaints — or early move-outs — faster than:
Warm units
Frequent breakdowns
Inconsistent cooling
High electric bills
A single AC system failure in midsummer can trigger:
Negative Google reviews
Tenant concessions
Emergency service fees
Increased turnover
Older HVAC = reduced tenant stability.
Knowing the age lets you solve problems before they hit your NOI.
7. Verifying the Age is Easy and Takes Seconds
Every condenser has a data plate with the manufacturing date or serial number.
If not, the age can be decoded from:
Serial number format
Brand-specific date codes
Manufacturer’s lookup charts
During inspections, I document:
Manufacturer
Model and serial number
Manufacture date
Condition
Operational status
This creates a complete HVAC inventory for your due diligence file.
Bottom Line: HVAC Age Directly Impacts Your Deal Math
Multifamily investors who skip HVAC age verification end up with:
Surprise CapEx
Higher repairs
Lower tenant satisfac
tion
Reduced NOI
Renegotiation problems at exit
Smart investors know:
If you don’t know the age of the AC units, you don’t know the real financial condition of the building.
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Why You MUST Get the Age of Every AC Unit During Due Diligence
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