Are you buying or selling a house with a rental furnace? Renting out a furnace is convenient for many people who do not have the ability to buy the furnace outright, or who want to package together the maintenance and the cost of the furnace. Having a steady relationship with the same HVAC company is great when your furnace runs into problems.
It’s Your Furnace
If you are the owner of the home and you’re renting the furnace through an HVAC company it is your responsibility to sort out what happens to the rental when you move. The contract that you signed will stipulate what can happen to the furnace when you move. Most commonly, these contracts allow you to transfer the rental from yourself to the new home buyer, although there may be a cost to this transfer. The contract may also allow you to pay it off before moving or for either buyer or seller to cancel the contract and for the HVAC company to come and pick up the furnace.
Alerting the Home Buyer
Once you understand what options are available to you and the home buyer, you need to alert the home buyer about their choices. You should inform the buyer of what company the furnace is rented from, what the monthly payment is, how many months are left in the contract, and what kind of options they have to take over the contract or cancel it. Provide them with a copy of the contract so both parties can easily reference the options available.
If you strongly lean towards one option, you can tell your buyer that and the two of you can negotiate with the real estate agents. They are used to negotiating over other appliances and adding a rental isn’t too much more complicated.
Are you looking to speak to an HVAC expert? Call our team at D&B ClimateCare today!
Buying a Home with a Rental Furnace
If you are the buyer, usually you will prefer to transfer over the furnace rental contract to yourself. Few people can afford to purchase a new furnace outright just after purchasing a home. However, you may want to do some due diligence first. Do you like the company that the contract is with? Is this the kind of furnace you would have picked for yourself? You can always cancel the contract with the current rental furnace provider and choose a new rental contract with a different company of your choosing.
Alerting the HVAC Company
Once both parties in the real estate transaction have agreed, it is important to alert the HVAC company about the transfer or the cancellation of the contract. They may need to collect the fee in either case and should also be informed of the change so that they can begin providing maintenance services to the new homeowner right away.
When Selling a Home with a Rental Furnace
There’s always the chance that you’ll move out of your home before your rental term is up. Be sure you know what your options are for your rental furnace when you sell.
Are you looking to get information about rental furnaces? Contact the experts at D&B ClimateCare to learn more about our Clarity program. We are here to help.
