Repair or Replace Appliances in Rental Units: Cost-Benefit for Landlords

The Hidden Cost of “Quick Fixes”

Did you know that the average appliance repair costs between $100 and $400, while replacement averages $500 to $2,000 per unit? For landlords managing multiple properties, these decisions add up quickly. Understanding when to repair or replace appliances in rental units can make the difference between steady cash flow and a costly maintenance spiral.

Many new landlords make the mistake of opting for the cheapest short-term fix—only to face repeat service calls, frustrated tenants, and lost rental income down the line.

How Long Should Rental Appliances Last?

Before deciding whether to repair or replace, know your benchmarks. The average lifespan of major appliances varies widely:

Appliance	Average Lifespan	Typical Repair Cost	Replacement Cost
Refrigerator	10–13 years	$200–$400	$900–$1,800
Dishwasher	8–10 years	$150–$300	$600–$1,000
Washer/Dryer	8–12 years	$150–$350	$700–$1,500
Stove/Oven	10–15 years	$100–$250	$700–$1,200
Microwave	7–9 years	$100–$200	$250–$400

If an appliance is more than halfway through its lifespan and the repair cost exceeds 50% of replacement, it’s generally smarter to replace.

The Cost-Benefit Breakdown for Landlords

When Repairs Make Sense

Repairs are usually the better choice when:

• The appliance is under five years old.

• Repairs are minor (e.g., thermostat, belt, or gasket issues).

• You’re between tenants and can schedule affordable maintenance.

• Replacement would require electrical or plumbing upgrades to fit a new model.

  
  

Example: A landlord in Joliet repaired a six-year-old washer for $180 instead of replacing it for $950. The repair extended its life another 3 years—yielding an excellent short-term ROI while maintaining tenant satisfaction.

When Replacement is the Better Move

Sometimes, replacement is the most cost-efficient option—even if the upfront cost stings.

Consider replacing when:

• The appliance breaks repeatedly or has multiple components failing.

• It’s older than 10 years and nearing end of life.

• You’re doing unit upgrades for higher rent potential.

• You want energy-efficient models that lower utility costs (especially in all-inclusive rentals).

  
  

New Energy Star-rated appliances can reduce electricity usage by up to 30%, helping you market your property as eco-friendly while boosting your rental appeal.

Tenant Expectations and Retention

Tenants notice when appliances are modern, quiet, and reliable. In fact, a Zillow survey found that updated appliances ranked among the top three amenities renters look for.

Reliable appliances also reduce complaints and emergency calls—meaning less stress and fewer late-night service requests. For out-of-state investors or landlords using virtual assistants, fewer maintenance calls translate directly into time and management savings.

Strategic Replacement Timing

To protect your budget, align appliance replacements with lease cycles.

• End of lease: Ideal for replacing appliances without disrupting tenants.

• During turnover: Combine appliance upgrades with repainting or flooring for bulk contractor discounts.

• Tax season: Appliance purchases may qualify for Section 179 depreciation or be expensed under the safe harbor rule, improving your year-end deductions.

  
  

Always consult a CPA familiar with real estate tax strategies to optimize timing.

Conclusion

Balancing repairs and replacements is part art, part math.

If repair costs exceed 50% of replacement—or the unit is past 70% of its expected lifespan—replacement usually wins long-term. But for newer appliances or simple issues, repairs protect your short-term cash flow.

Well-maintained, energy-efficient appliances keep tenants happy, reduce maintenance calls, and increase property value—all crucial ingredients for a scalable rental portfolio.