Advanced SearchSearch Tips
LCC Analysis to Determine an Appropriate Apartment Rent Rate for HVAC System Renovation Projects
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
LCC Analysis to Determine an Appropriate Apartment Rent Rate for HVAC System Renovation Projects
Kim, Dae Young; Lim, Hyoung-Chul;
  PDF(new window)
Residential building owners are turning toward renovating their existing buildings to improve old and inefficient HVAC systems. Due to the renovation, much of the added costs will inevitably be passed on to tenants by increasing rent rates. This increment often increases the vacancy rate in the buildings. To balance the interests of both owners and tenants, this paper suggested a method to determine an appropriate rental rate increment for the HVAC system renovation. A case study on residential buildings was conducted to determine a balanced point where the rental rate increment that offsets the amount tenants are willing to pay for the renovation. To calculate all costs incurred by the renovation, life-cycle cost analysis was carried out. Therefore, this paper ultimately provides a threshold value of rental rate increment such that building owners can make a reasonable decision on the HVAC system renovation.
Renovating buildings;energy-efficiency;HVAC systems;life-cycle costs;
 Cited by
An empirical study on the influence of management consulting factors on corporate culture and business performance, Journal of the Korea Industrial Information Systems Research, 2016, 21, 1, 83  crossref(new windwow)
W. M. Adams, "The future of sustainability: Re-thinking environment and development in the twenty-first century", The Report on the International Union for Conservation of Nature (IUCN) Renowned Thinkers Meeting, 2006.

IEEP, "Review of Costs and Benefits of Energy Savings" Institute for European Environmental Policy, London, 2013.

N. Becker and D. Lavee, "The benefits and costs of noise reduction", Journal of Environmental Planning and Management, Vol. 46, No. 1, pp. 97-111, 2003. crossref(new window)

D. R. François, T. Marius, K. Yan, and V. Paul, "Landscaping and house values: an empirical investigation", Journal of real estate research, Vol. 23 No. 1-2, pp. 139-162, 2002.

P. Plaut and S. Plaut, "The Inversion of the Land Gradient in the Inner City of Haifa, Israel", Journal of Real Estate Research, Vol. 25, No. 4, pp. 557-576, 2003.

B. A. Portnov, "Housing Modifications, Neighbourhood Environment, and Housing Prices: Traditional Paradigms Re-examined", Housing Finance International, Vol. 20, No. 3, pp. 18-29. 2006.

S. Rosen, "Hedonic prices and implicit markets: product differentiation in pure competition", The journal of political economy, Vol. 82, No. 1, pp. 34-55, 1974. crossref(new window)

S. Banfi, M. Farsi, M. Filippini, and M. Jakob, "Willingness to pay for energysaving measures in residential buildings", Energy economics, Vol. 30, No. 2, pp. 503-516, 2008. crossref(new window)

ASHRAE, "Handbook of Air-Conditioning System and Equipment", American Society of Heating, Refrigerating, and Air- Conditioning Engineer, Atlanta, GA, 2000.

DOE, "Annual Energy Outlook 2007 with Projections to 2030", Office of Integrated Analysis and Forecasting, U.S. Department of Energy, Washington, DC, 2007.