Should a landlord repair or replace a rental appliance?
A common rule of thumb says replace an appliance when the repair costs more than about half of a comparable new one, and also replace one that is near the end of its typical life or keeps failing. It is a guide, not a law. Look at the repair quote, the appliance's age, how often it has broken and what a replacement costs, then decide. The tax treatment differs for repairs and replacements, so keep the invoice. This is general information, not legal or tax advice.
The 50 percent rule, and why it is only a start
The idea is simple: if the repair quote is more than about half the price of a similar new appliance, the money is better spent on a new one. A $450 repair on a refrigerator that costs $900 new is right at the line. Many owners add a second test: if the appliance is more than about two thirds through its expected life, replace even at a lower repair cost.
Expected life depends on the appliance and the brand, and you should rely on your own history and the manufacturer's guidance rather than a number from a blog. Your own records are better: when did you buy it, what has it cost to fix and how many service calls has it had?
What to weigh
- Repair cost as a share of a comparable new unit, delivered and installed.
- Age compared with the typical life, and your own record of that model.
- Repeat failures. Two calls in a year usually mean a third is coming.
- Part availability. A part that is backordered means a unit that is down for weeks.
- Tenant impact. A refrigerator or stove out of service is a habitability issue in many places, so speed matters.
- Efficiency and safety. Older units may use much more energy, and some repairs are not worth doing on gas appliances.
Example a made-up owner gets a $380 quote to fix a 12-year-old dishwasher that has had two service calls this year. A new one installed is $750. The repair is about half the cost of a replacement, the appliance is old and has been failing, so the owner replaces it, and the tenant has a working dishwasher within a few days.
Keep the invoice, because the tax treatment differs
In general, a repair that keeps property in working condition is deducted as an expense, while replacing an appliance is usually treated as an improvement that is depreciated over time, though a small-item safe harbor can let you deduct some purchases right away. Your accountant decides which applies to you. The repair or improvement guide goes through how to label each invoice so year-end is easy.
Whichever you choose, write down what was done, the date, the model and serial number and the unit, and attach the invoice.
Plan replacements before they fail
List every appliance with its install date. Mark the ones that are old, and budget for them. A yearly reserve per unit, discussed in the reserves guide, turns a surprise into a planned expense. When several units get new appliances in a turn, buying the same model makes parts and repairs easier.
Rules on who pays for appliance repairs depend on the lease and state. See who pays for appliance repairs.
How DoorKeeping handles it
Each repair stays on the work order with its photos, its note and its cost, so when a tenant reports the same refrigerator again you can ask Claude or ChatGPT "how many times have we fixed this unit's refrigerator and what did it cost?" and decide with the real numbers. Rent stays in your own bank account, and anything involving money waits for your approval.
Sources
- DoorKeeping: Connect Claude or ChatGPT (steps and tools list), read Oct 30, 2026
Questions
- What is the 50 percent rule for appliances?
- A rule of thumb that says to replace an appliance when the repair costs more than about half of a comparable new one. It is a guide, not a legal rule.
- Should I replace an old appliance that still works?
- Not necessarily. Replace when it is near the end of its life and repairs are adding up, and plan the cost ahead.
- Is an appliance replacement deductible right away?
- It depends. Some small purchases may qualify for a safe harbor, and others are depreciated. Ask your accountant.
- How fast must I fix a broken refrigerator or stove?
- Many places treat them as part of a habitable unit when the landlord provides them, with response times that vary. Check your state and act quickly.