When to Repair or Replace Appliances: A Landlord’s Guide

As a landlord, maintaining appliances in your rental properties is essential for keeping tenants satisfied and protecting your investment. But when an appliance breaks down, the big question arises: should you repair it or replace it? Making the right choice can save you money, reduce tenant turnover, and minimize headaches. Here’s how to decide.

Key Factors to Consider

1. Age of the Appliance

Every appliance has an expected lifespan. If an appliance is nearing the end of its useful life, replacement might be the better option. Here are some average lifespans to keep in mind:

• Refrigerator: 10-15 years

• Dishwasher: 7-12 years

• Washer & Dryer: 10-13 years

• Oven/Stove: 10-15 years

• Microwave: 7-10 years

• Water Heater: 8-12 years

If an appliance is past 75% of its expected lifespan and needs a major repair, replacing it is often more cost-effective.

2. Cost of Repair vs. Replacement

A general rule of thumb is the 50% Rule: If the cost of repair is more than 50% of the cost of a new appliance, replacement is the smarter choice. Also, consider how frequently the appliance has been breaking down—repeated repairs add up quickly.

3. Tenant Satisfaction & Retention

A broken or unreliable appliance can frustrate tenants and increase the risk of turnover. If repairs will take too long or result in continued issues, replacing the appliance may be worth it to keep tenants happy and avoid vacancy costs.

4. Energy Efficiency & Operating Costs

Older appliances are often less energy-efficient, leading to higher utility bills (which tenants or landlords may pay, depending on lease terms). Upgrading to ENERGY STAR-rated appliances can lower costs in the long run and be a selling point for prospective tenants.

5. Warranty & Tax Benefits

Check if the appliance is still under warranty—repairs might be covered, making them the obvious choice. Additionally, landlords can often depreciate appliances over time or claim replacements as tax-deductible expenses. Consult a tax professional to see how this affects your bottom line.

When to Repair

• The appliance is relatively new and within its expected lifespan.

• The repair cost is less than 50% of the replacement cost.

• The issue is minor (e.g., replacing a belt, fixing a switch, unclogging a drain).

• The appliance has not had frequent breakdowns in the past.

When to Replace

• The appliance is near or past its lifespan.

• Repair costs exceed 50% of a new appliance.

• The appliance has a history of multiple breakdowns.

• Energy efficiency is poor, leading to higher costs.

• Upgrading adds value to the rental unit and attracts tenants.

Final Thoughts

Striking the right balance between repairs and replacements ensures your rental property remains attractive, functional, and cost-effective. Being proactive with maintenance and knowing when to invest in new appliances will keep tenants happy and reduce unexpected expenses.

Need help managing your rental property more efficiently? Houswit is here to make property management hassle-free. Stay tuned for more tips on smart property ownership!