Aside from the obvious sound and odor factor, bathroom fans are actually an essential part of keeping a bathroom safe and to code. When you are taking a really hot, steamy shower, a fan allows the air to circulate without setting off the fire alarm. The exhaust fan works by actually removing moisture from the air. Lingering moisture can increase the risk of mold growth and can cause lasting damage to bathroom surfaces and fixtures.
In addition to controlling the amount of moisture in the bathroom, fans also help control odors from chemical cleaning products. Strong cleaners are used in these areas of the home and good ventilation is essential for safety.
The size of the fan is very important to consider. You obviously would not want to install the same size fan in a small home bathroom as you would in a large, multi-stall commercial bathroom. The fan needs to be strong enough to work properly, but it is possible for a bathroom fan to be too strong for the space and create a negative pressure.
To summarize, bathroom fans are needed for:
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Safety
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Code regulation
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Air circulation
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Removing moisture
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Smell
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Sound
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Chemical ventilation