HVAC for Denver Rentals: Furnaces, Heat Pumps, Swamp Coolers and Rebates

General information for Denver-area rental owners, not legal advice. Rules and prices checked October 27, 2026. Cost ranges are published estimates, not quotes.

Licensing and permits

Denver licenses HVAC contractors through mechanical certificates, such as "Heating, Ventilating, A/C – Residential Only" and "Hot Water Supervisor." Check the license on Denver's contractor search.

Denver's code exempts like-for-like repairs from permits unless the work disconnects or reconnects a gas line, flue, refrigerant line or hot water line. A furnace, AC or water heater swap almost always does, so expect a permit. For single-family homes and duplexes, like-for-like replacements usually qualify for a same-day Quick Permit online.

Switching from gas to a heat pump is a bigger change. Confirm the permit path with Denver Community Planning and Development before you sign.

Does Denver require heat pumps?

Not for houses. Denver's rules requiring heat pumps when equipment is replaced apply to existing commercial and multifamily buildings, and the 2025 Denver Energy Code narrowed even those. We found no heat-pump-at-replacement mandate for single-family homes, duplexes or townhomes. You can replace a gas furnace with a gas furnace.

Energize Denver's benchmarking and performance rules apply to buildings of 5,000 square feet or more, not typical one- to four-unit rentals.

What HVAC costs in Denver

Source: Angi's 2026 Denver cost guides.

Rebates and credits in 2026

• Colorado heat pump tax credit. For installs on or after January 1, 2026: $1,000 for an air-source heat pump, $2,000 for ground-source and $250 for a heat pump water heater. The registered contractor claims it and must pass at least a third to you as a discount. It's open to all Colorado residents and businesses, so rental owners qualify.
• Xcel Energy rebates. Xcel offers heat pump rebates to its Colorado residential customers. Amounts changed in 2026, so check Xcel's current page and ask your contractor what applies to a rental.
• Denver rebates. Denver's residential Climate Action Rebates aren't currently listed. The city's building programs focus on multifamily and commercial owners.
• Federal 25C credit. Ended for equipment placed in service after December 31, 2025. It also never applied to landlords who don't live in the home.

Swamp coolers

Many older Denver homes use evaporative (swamp) coolers. If you provide one, it's an appliance you must maintain. Colorado's 2024 habitability law added air conditioners and coolers to the appliances landlords must keep working when they're provided. Budget for spring start-up and fall winterizing every year. See our winterizing guide.

Heat is a habitability issue

Denver's rule requires rental heat that can keep the home at 70°F when it's -5°F outside. A broken furnace in winter is a life, health or safety condition, so you'd have 24 hours to start repairs. And Colorado law requires landlords to hire a professional for any hazard involving gas piping or gas appliances.

Practical steps:

1. Service the furnace every fall.
2. Replace filters on a schedule, or have your tenant do it if the lease says so.
3. Know the furnace's age. Most last 15 to 20 years.
4. Keep a licensed HVAC company you can call at night.
5. Have a plan for space heaters or a hotel if a repair takes days.

How to get help

Good property managers schedule seasonal HVAC service, have contractors who answer in January, and know which rebates apply to rentals. We'll match you with up to three vetted, licensed managers. Free, no obligation. Get matched free.