2025 HVAC Refrigerant Rules: Property Manager’s Guide| Lula

New HVAC Rules Affecting Property Managers

New HVAC rules are now in effect, focusing on phasing out high-pollution refrigerants to protect the environment. This guide explains what has changed since January 2025 and what property managers need to do now to maintain the value of investors’ properties and ensure tenant satisfaction.

What Are the 2026 HVAC Refrigerant Rules?

The EPA’s Technology Transitions Program, under the American Innovation and Manufacturing (AIM) Act, limits the use of hydrofluorocarbons (HFCs) with a Global Warming Potential (GWP) above 700. R-410A, used in many residential and light commercial HVAC systems, has a GWP of approximately 2,088.

January 1, 2025: Manufacturing and Import Ban

New HVAC equipment using refrigerants with GWP above 700 cannot be manufactured or imported. Existing inventory will continue to be available for sale and installation until the next deadline.

January 1, 2026: Installation Ban

New residential and light commercial split systems using GWP > 700 refrigerants can no longer be installed, except for systems manufactured or imported before January 1, 2025.

January 1, 2027: Variable Refrigerant Flow (VRF) Systems

Multi-zone VRF systems have a separate installation deadline. Property managers should confirm applicable timelines with HVAC contractors.

How It Affects Current HVAC Systems

• Repairs Get Tougher: Older R-410A systems are harder to service due to rising refrigerant costs as production is phased down.
• Proper Disposal: Old systems with banned refrigerants must follow EPA disposal rules.
• Maintenance Costs: As R-410A prices rise, replacing old units may be more economical than repairing them.
• No Partial Replacements: A2L equipment is incompatible with existing R-410A systems; full system replacement is required if any component fails.

Why Property Managers Should Care

Rising repair costs and longer lead times increase risks for tenants if systems fail during critical seasons. Proactive planning for upgrades can shield investors from both cost increases and tenant issues.

How the Rules Affect Real Estate Investors

Higher Costs

New HVAC systems cost 20-40% more than those before 2025. This increase is due to additional safety features required by A2L technology and rising import tariffs. Repairing old R-410A systems is becoming more expensive, driven by tightening EPA production quotas.

Planning for Expenses

Investors with older HVAC systems can:

• Keep Repairing: Continue maintaining R-410A units, but costs will increase.
• Replace: Switch to A2L-compliant systems which are more efficient and have fewer breakdowns.

Property Value and Appeal

• Older Systems: Properties with R-410A face rising maintenance costs and potential tenant retention issues.
• Newer Systems: A2L systems are more efficient and can lower utility costs.

What Property Managers Can Do

1. Talk to Investors Now: Communicate the two deadlines and update them on cost projections.
2. Audit HVAC Systems: Hire contractors to inspect each system's age and condition.
3. Build a Replacement Schedule: Prioritize replacements by age and problems, and spread costs over several budget cycles.
4. Check Incentives Carefully: Be aware of expired federal tax credits and check for state-level incentives.
5. Vet Your HVAC Contractors: Ensure contractors have A2L certifications for installation of compliant systems.

Get Ready: Next Steps for 2026

Start updating investors on the effects of the new regulations and schedule HVAC inspections ahead of cooling season. Order replacement equipment early as lead times are longer. Verify contractor qualifications and check available incentives in your operational areas.

Wrap-Up

The transition from R-410A to A2L systems can bring significant cost increases and compliance requirements. Proactive management helps position investors favorably and reduces risks associated with HVAC failures.