Last Tuesday, I sat down with a contractor who was seriously considering buying a 20-ton rooftop unit for $14,250. At first glance, that sounds like a solid deal, right? But then we ran the numbers, factoring in the tariffs, shipping delays, and the headaches of storing such a beast on-site while waiting for installation. The truth is, the HVAC rental market boom is changing how contractors approach equipment sourcing. The question is: when does renting beat buying?
Why the HVAC Rental Market Boom?
Look, tariffs on imported HVAC equipment hit hard in 2023. The 25% tariff on units from China and certain Southeast Asian countries added thousands of dollars to sticker prices overnight. Take a Carrier 48HJ rooftop unit, which cost about $11,900 in 2021. By late 2023, that same model was pushing $15,700 landed. Add in expedited freight fees of roughly $1,200, and you’re staring at close to $17,000 before installation.
And it’s not just the sticker shock. Lead times ballooned from 6 weeks to over 16 weeks on some models. That delay often kills project schedules, which means liquidated damages or rescheduling crews. So contractors started looking elsewhere.
Enter the equipment rental providers.
Companies like Sunbelt Rentals and Herc Rentals have expanded their HVAC fleets hvac equipment tariffs aggressively. I’ve seen their rental rates for a 20-ton Trane rooftop unit hover around $1,100 per week. That sounds steep until you factor in carrying costs, storage, and the risk of price swings.
Temporary Cooling Costs: The Hidden Expense
Temporary cooling is a line item that often gets glossed over. But if you delay a project because you can’t get your hands on a unit, you’ll pay in temp cooling rentals, which can run $350 to $500 per day for industrial fans, chillers, and ducting.
One general contractor I worked with last fall nearly doubled their budget on a hospital retrofit because they rented multiple temporary chillers for 10 weeks while waiting on equipment. That was $18,200 just in temporary cooling alone. Renting the actual rooftop unit for $1,100 per week over that span might have been cheaper and saved critical time.
Rental vs Purchase: Breaking Down the Numbers
Here’s the thing: owning equipment feels like you’re investing in your business. But that’s only true if you can use it repeatedly and store it efficiently between jobs.
Let’s run a scenario:
- Purchase a 20-ton Carrier rooftop unit at $15,700 landed. Assume a 16-week lead time. Storage and handling costs add $500 per month. Opportunity cost of your capital at 8% annually.
Over 4 months, that adds roughly $550 in storage and about $940 in opportunity cost, plus the risk of price depreciation or damage. You also risk project delays waiting on delivery.
Compare that to renting the same unit for $1,100 per week. Over 16 weeks, that’s $17,600. Slightly more expensive on paper, but it includes delivery, maintenance, and you avoid storage headaches.
Now, if your project is shorter, say 6 weeks, rental costs drop to $6,600, dramatically cheaper than buying outright and storing. The lines blur for projects lasting 10 to 12 weeks.
Supply Chain Solutions: How Rental Firms Are Filling Gaps
Rental companies aren’t just sitting on dusty units. They’re adapting fast. Herc Rentals started stocking more York YT units and Goodman 4-ton package units to cover residential and light commercial needs. Sunbelt Rentals invested in portable chillers from Thermo King and Carrier, useful for temporary cooling during changeovers.
Last month, a client nearly made a classic mistake. They ordered 15 Goodman rooftop units for a mixed-use project, expecting delivery in 6 weeks. By week 8, only 5 showed up. Instead of delaying, we shifted to renting 10 units from Sunbelt at $900 each per week, which cost $7,200 for the 8 weeks of delay. The project kept moving, and the client avoided liquidated damages that would have topped $25,000.
Contractor Survival Tactics in a Turbulent Market
So what’s a contractor to do when the HVAC rental market boom is shaking up the old playbook?
First, get granular with your project schedules. If your HVAC portions have float, consider renting and returning equipment as needed. This reduces your upfront capital outlay and risk.
Second, negotiate rental agreements with firms that offer flexible terms. Some providers like Sunbelt will let you swap units mid-rental if specs change.
Third, watch material prices daily. Copper tubing jumped from $6.50 per pound in January 2023 to $9.20 in November. That’s a $2,700 cost increase on a typical 500-pound order. Renting equipment means you can delay ordering materials until prices stabilize.
Lastly, consider hybrid approaches. Buy long-lead items you can store safely and rent others. For example, buying compressors outright but renting complete rooftop units.
Real Numbers from the Field
I recently priced out a 10-ton rooftop unit for a school expansion. Purchase price was $8,450 landed, lead time 12 weeks. Rental was $720 per week.
Project HVAC phase was 8 weeks. Buying meant 4 weeks of storage at $500 monthly plus $225 opportunity cost. Total owning cost: $9,175. Renting: $5,760. The client saved $3,415 by renting.
Another example: a 30-ton chiller purchase quote came in at $46,800 landed with a 20-week lead. The rental rate was $2,300 weekly. For a 12-week project, renting cost $27,600 versus buying and waiting. The client opted to rent and avoided a 12-week schedule slip.
Why This Market Shift Matters
Look, this HVAC rental market boom isn’t a fad. It’s a response to a supply chain and tariff environment that’s unpredictable. Contractors need to rethink their equipment sourcing strategy.
Not every project benefits from rental, but most should at least consider it as a serious option.
The risk of tying up $15,000 to $50,000 in inventory that sits idle or arrives late is too high. Rental gives flexibility, reduces risk, and sometimes saves money.
FAQ: HVAC Rental Market Boom and Equipment Strategies
Q: How much can I expect to pay to rent a typical rooftop unit?
A: Rental rates vary by size and provider. For a 10 to 20-ton rooftop unit, expect $700 to $1,200 per week. Smaller units rent for less, around $350 to $600 per week. Longer-term rentals often come with discounts.
Q: Are rental units always newer or well-maintained?
A: Most reputable rental firms maintain their fleets carefully. Brands like Trane, Carrier, and York dominate rental inventories. Expect units to be serviced regularly. Always inspect units before acceptance.
Q: Does renting include delivery and pickup?
A: Usually yes. Most rental agreements include delivery and pickup fees in the quote, but confirm because some providers charge separately based on distance or equipment size.
Q: How do tariffs impact rental pricing?
A: Tariffs raise purchase prices, which indirectly affect rental rates as firms amortize acquisition costs. But rental firms often source units globally or refurbish older units, which can keep prices competitive.
Q: Can rental contracts be extended or canceled mid-project?
A: Many rental providers offer flexible terms, allowing extensions or early returns. But there might be penalties or minimum rental periods. Always read the fine print.
Q: Is renting HVAC equipment a good long-term strategy?
A: For contractors with frequent projects or stable demand, owning can be cheaper over years. But in volatile markets with tariffs and supply chain issues, renting reduces risks and capital tie-up.
Q: What about warranty and damage responsibility on rentals?
A: Rental units come with warranty coverage from the provider. Damage policies vary, but renters typically cover physical damage beyond normal wear. Inspect units carefully upon delivery.
Q: How do temporary cooling costs compare when renting HVAC units?
A: Temporary cooling rentals like portable chillers or fans can run $350 to $500 per day. Renting actual rooftop units for the project duration can be more cost-effective and less disruptive.
https://estimatorflorida.com/how-hvac-tariffs-are-driving-up-system-costs-in-2025/Q: Are there specific equipment brands that dominate the rental market?
A: Trane, Carrier, York, and Goodman are common. Rental firms often stock models with broad application and easy maintenance.
Q: How can contractors hedge against rising material and equipment costs?
A: Diversify sourcing, lock in rental rates early, consider hybrid rental-purchase strategies, and keep close tabs on market prices. Renting offers flexibility to adjust as costs fluctuate.
Wrapping Up
The HVAC rental market boom is real and it’s shaking up how contractors manage costs and schedules. I’ve seen the numbers, heard the stories, and watched projects saved by smart rental decisions.
If you’re still thinking purchase only, take a hard look at your project timelines and cash flow. Renting might be the best survival tactic in this tariff and supply chain chaos.
And yeah, it’s a bit annoying that we have to rethink traditional procurement just to stay afloat. But that’s the game right now. Play it smart.