New Appliances vs. Used Appliances In Rentals

New Appliances vs. Used Appliances In Rentals

Investor · Austell, FL · Member since 2014 · 110 posts · 19 votes

I'm a property manager in Palm Beach County and I've grown increasingly frustrated with the costs associated with appliance repairs in recent months. This is causing me to reconsider only using used appliances in our units and switching to installing new appliances if the price is right. I'm wondering at what point from a price perspective does it make sense to go with new vs used? We can usually get used stoves for about $200-$220 including delivery, install, and removal of the old stove. A new stove seems to be in the $400-$450 range just doing a quick search online. The price difference seems to be the same when it comes to dishwashers and microwaves, but much greater when it comes to refrigerators.  


I just want to get some thoughts from BP and maybe some strategies that others have found to work well when it comes to appliances. 

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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
6y

We never purchase used dishwashers any more. They never last. Ranges we are open to purchasing used if the property is not class A. But even then the prices for new are so close to used, it is hard to justify used now.

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  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    6y

    We never purchase used dishwashers any more. They never last. Ranges we are open to purchasing used if the property is not class A. But even then the prices for new are so close to used, it is hard to justify used now.

    McCaw Property Management4.4900 Reviews
  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    Always purchased new. Everything is switched to stainless as it’s replaced. If you’re going to put used appliances they better look like new. As soon as you put a scratched or dented appliance in you’re telling the tennant “thus kind of property has dented and scratched appliances”. Might as well have chipped countertops and broken cabinets. 

    To tell you how good new appliances are, you can usually buy a 5 year extended warranty for $100, and nobody does. 

  • Sterman, MI · Member since 2017 · 378 posts · 306 votes
    6y

    It depends on the class that you rent to. The people I rent to don't like 20 year old appliances. So when I buy I buy new. Except for new electric ranges. The government put a temperature limit on them so you can hardly boil water. Everything else I buy new. Big box stores on sale.

  • Investor · Louisville, KY · Member since 2017 · 199 posts · 253 votes
    6y

    I have units in B areas. I place only used and would never pay for a new stove or refrigerator.

    I simply keep my eyes out for good working stoves and fridges and usually have a couple spares on hand and if something goes down that is not an easy fix I just grab the trailer and dolly and exchange it.

    And in my area you can find working white stoves and single fridges for $100.00 each if you pick it up yourself.

  • Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    6y

    @Bobby Valcin There are appliance lifespan charts that with deciding, also serial number look up for appliance ages. I have found good deals used but time is money and with an occupied property I just buy new. And I upgrade to a decent level because apartment grade is crap, at least the beautiful SS ones in my “luxury” apartment were. Loud dishwasher, slow electric range, etc. I may spend $80 more to get a tad nicer. But I have sfh in b areas sharing schools with a areas.

  • Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    6y

    I go with new appliances.  Especially dishwashers, refs, and washers.  Besides the constant maintenance problems you at times have to consider what happens when the ref goes out for a few days and spoils the tenants food.  There can be a cost to that as well.  Also, new appliances are a great selling point.  

  • Investor · Austell, FL · Member since 2014 · 110 posts · 19 votes
    6y
    Originally posted by @Kyle Mccaw:

    We never purchase used dishwashers any more. They never last. Ranges we are open to purchasing used if the property is not class A. But even then the prices for new are so close to used, it is hard to justify used now.

    I find myself thinking that it is probably good to do some appliances used and some new depending on the type of appliance. A used fridge vs a new fridge seems to have the biggest gap from what I've seen. At what price differential would you pull the trigger on doing new instead of used? 

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    6y

    typically we do not provide frigs. sometimes in low income properties we have to. in that case used is 100% the way to go. the water and ice makers are the major issue we have with frigs. so try not to have those if at all possible.

    McCaw Property Management4.4900 Reviews
  • Investor · Austell, FL · Member since 2014 · 110 posts · 19 votes
    6y
    Originally posted by @Michael Jones:

    I have units in B areas. I place only used and would never pay for a new stove or refrigerator.

    I simply keep my eyes out for good working stoves and fridges and usually have a couple spares on hand and if something goes down that is not an easy fix I just grab the trailer and dolly and exchange it.

    And in my area you can find working white stoves and single fridges for $100.00 each if you pick it up yourself.

    Wow, that is cheap. That seems like a pretty significant time commitment to shop around, pick up machines, drop them off, etc. Do you have system in place that allows you to do those things quickly?

  • Michael CrossPro Member
    Rental Property Investor · Smithsburg, MD · Member since 2016 · 58 posts · 41 votes
    6y

    I have done both used and new. We have a few local used appliance shops around that work with our property managers to deliver and remove. They also warranty their appliances for 1 year. If they have something nice in stock, we purchase from them but otherwise we will grab something new. I would try not to overthink this too much and would easily go with new appliances for all of the reasons mentioned above.

    I want to avoid as many problems with tenants as possible to increase their satisfaction.

  • Member since 2010 · 210 posts · 158 votes
    6y

    I do new. I am open to the scratch and dent sales at the big box stores though.

  • Rental Property Investor · Orchard Park NY · Member since 2018 · 17 posts · 3 votes
    6y

    I purchase stainless stoves and refrigerators. But they are on loan and if they break tenants are responsible to get them fixed. You can get higher rents when things are updated and newer.

  • Member since 2020 · 5 posts · 3 votes
    6y

    We've had terrible, terrible luck with new fridges. Warranty work is horrible, have to get so many call outs to get to just replace one that's a lemon. The old ones with old refrigerant systems fail practically never. That said it's hard to find an attractive one. But some of my houses I would if I could. Def buy used otr microwaves all the time. Bought a used stove recently bc the tenant's kid kept breaking the plastic handle on hers and the metal handle ones are way more expensive. 

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    6y

    We go scratch & dent but rarely get 5 years out of the new appliances. Just removed an 800 series Bosch dishwasher I got for $296 with a side dent & broken/bent hinges. New hinges were $12 on Amazon & it ran for 5 years. Just had an E01 code so time to toss it.

  • Rental Property Investor · Richmond, VA · Member since 2014 · 100 posts · 50 votes
    6y

    @Bobby Valcin

    I have come to the realization that new appliances are the only way to go. I go to Lowe's, pick out what I want, and have them delivered. It's very convenient. All I have to do is haul the old appliances to the scrap metal yard (or sell them for a few bucks if I can).

    I used to install used appliances, but found that the effort of finding them and hauling them, combined with the frustration of them not always working right wasn't worth my time.

    If you only own one or two houses and are just getting started, used appliances are fine. But if you have 10 houses, it may not be worth your effort.

  • Investor · Louisville, KY · Member since 2017 · 199 posts · 253 votes
    6y
    Originally posted by @Bobby Valcin:
    Originally posted by @Michael Jones:

    I have units in B areas. I place only used and would never pay for a new stove or refrigerator.

    I simply keep my eyes out for good working stoves and fridges and usually have a couple spares on hand and if something goes down that is not an easy fix I just grab the trailer and dolly and exchange it.

    And in my area you can find working white stoves and single fridges for $100.00 each if you pick it up yourself.

    Wow, that is cheap. That seems like a pretty significant time commitment to shop around, pick up machines, drop them off, etc. Do you have system in place that allows you to do those things quickly?

    I don’t wait until I need the used fridge or stove. I just keep an eye out on used ones on Facebook that are priced low and keep two spares in my garage.

    Then if I have an issue I just flip the one in my garage for the one having the issue.

    Then I start looking for another spare to replace the spare I used.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    @Bobby Valcin here is my thoughts:

    Dishwasher: I would never purchase a used dishwasher. They have a limited life and the install cost is the same for new or used. The other risk is dishwashers leak when they are not working, so in the end you are not saving anything. We pay around $350 new for a not lowest end model.

    Range: Used can be ok. Ranges are fairly easy to test and have far less likelihood of hidden problems. They also have the longest life of any kitchen appliance. Usually we end up replacing ranges due to cosmetic issues more than mechanical. Even if a stove goes bad, it is the lease troublesome of all appliances. You can go without a stove (no food spoilage or leaking water). We have chosen to upgrade to flat top stoves and self cleaning ovens that are black. We generally buy new but I would get used if black was easier to find.

    Refrigerator: You can end up with lots of intermittent issues on a refrigerator. Sometimes they can be repaired easily, such as a fan or relay gone bad. Generally speaking we prefer new just because of the cleanliness and appearance. We also don't want the risk of a fridge going bad and causing food to spoil for the tenant. We generally do new, but in a C class or below I would consider used, just because tenants can destroy fridges quickly.

    Microwaves: We do not provide a microwave. They cost under $100 so no reason to ever buy used. 

    Washer and dryer: Possibly the most repair prone of all appliances. They can be damaged quickly with misuse. We no not provide these appliances. If they are in a property, we remove them. A good pair can be purchased used for under $300 and it is the tenants problem if they break.

  • Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Bobby Valcin @Joe Splitrock - I agree with Joe’s assessment. Joe- how do your tenants destroy fridges? Just dirty or actually broken shelves? Why do you remove washers and dryers vs telling them they’re bonus and not included in rent? I know I get at least a $50/mo lift for having an existing washer and dryer in my rentals. (Dryers break a lot less than washers do.)

    Bobby - Do you have any utility company/home warranty packages in your area that might be worth it? In New Jersey pseg will repair appliances if you have a $6-10/mo plan per covered appliance with them. I’ve mostly replaced stuff with new on sale because the included install is valuable to me.

    In 2009, when I bought my first rental property in Virginia that gets heavy use (4-6 adults), I bought a used white ice maker fridge for $300, a used front load washer and dryer pair for $700, used otr microwave for $100 and kept the existing old white dishwasher, oven, furnace, ac, hwh. After 2 years the ice maker / waterline was broken. After 3 years I repaired the dryer thermistor for $50. After 5 years I repaired the oven for $30 and repaired the ac for $400. After 6 years I replaced the washer with new for $700. I replaced the microwave with new for $60 countertop. After 8 years I replaced the dishwasher with new for $450 + (adding a gfci plug in outlet was $200 remotely). So 10 years in original oven, orig furnace (2000), orig air conditioner (2006), orig hot water heater (??), used fridge and used dryer I bought day 1. Replaced microwave, dishwasher, washer for roughly $1450 including electrical work.

    If you’re a property manager, it is not worth your time to have to chase down appliance repairs unnecessarily. The owner doesn’t really get a guarantee either, it could die again tomorrow or next month. The thing that I’ve heard about new appliances though is they’ve been value engineered and are more likely to break within 10 years. Dishwashers, washers and fridges have a high lemon probability of dying within 3-5 years once you’re out of warranty. Check out Samsung fridges they have some terrible reviews.

    I like to buy my appliances on sale with free delivery and hookup. Black Friday usually offers the best deals though other holiday weekends get pretty close. You can make sure to get 10% off coupons from usps moving or buy gift cards at 90 cents on the dollar (I get them as credit card rewards) to stack up the best discounts.

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    6y

    Only new anymore. The old appliance were bulletproof but now used are of the newer variety and are junk. Replacing appliances just a cost of doing business.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Natalie Schanne:

    @Bobby Valcin @Joe Splitrock - I agree with Joe’s assessment. Joe- how do your tenants destroy fridges? Just dirty or actually broken shelves? Why do you remove washers and dryers vs telling them they’re bonus and not included in rent? I know I get at least a $50/mo lift for having an existing washer and dryer in my rentals. (Dryers break a lot less than washers do.)

    Bobby - Do you have any utility company/home warranty packages in your area that might be worth it? In New Jersey pseg will repair appliances if you have a $6-10/mo plan per covered appliance with them. I’ve mostly replaced stuff with new on sale because the included install is valuable to me.

    In 2009, when I bought my first rental property in Virginia that gets heavy use (4-6 adults), I bought a used white ice maker fridge for $300, a used front load washer and dryer pair for $700, used otr microwave for $100 and kept the existing old white dishwasher, oven, furnace, ac, hwh. After 2 years the ice maker / waterline was broken. After 3 years I repaired the dryer thermistor for $50. After 5 years I repaired the oven for $30 and repaired the ac for $400. After 6 years I replaced the washer with new for $700. I replaced the microwave with new for $60 countertop. After 8 years I replaced the dishwasher with new for $450 + (adding a gfci plug in outlet was $200 remotely). So 10 years in original oven, orig furnace (2000), orig air conditioner (2006), orig hot water heater (??), used fridge and used dryer I bought day 1. Replaced microwave, dishwasher, washer for roughly $1450 including electrical work.

    If you’re a property manager, it is not worth your time to have to chase down appliance repairs unnecessarily. The owner doesn’t really get a guarantee either, it could die again tomorrow or next month. The thing that I’ve heard about new appliances though is they’ve been value engineered and are more likely to break within 10 years. Dishwashers, washers and fridges have a high lemon probability of dying within 3-5 years once you’re out of warranty. Check out Samsung fridges they have some terrible reviews.

    I like to buy my appliances on sale with free delivery and hookup. Black Friday usually offers the best deals though other holiday weekends get pretty close. You can make sure to get 10% off coupons from usps moving or buy gift cards at 90 cents on the dollar (I get them as credit card rewards) to stack up the best discounts.

     I have moved out of my C rentals, but when I had them, tenants would break shelves or dent doors. Sometimes shelves or door trays were just missing (assume they broke them). Sometimes they would be so dirty it would take hours to clean. 

    The reason we remove the washers and dryers is so we deliver the property without them. I have tried the "bonus" route and had people expect me to either repair or remove the appliances, even though I said I would not. Or they just leave the broken appliance there when they leave. For me it is just easier to sell them and be rid of them. 

    As far as $50 per month extra for the washer / dryer, that seems worth it as long as you are not paying utilities for them. In my market, you can buy a used washer / dryer combo for $200 and the used appliance store has a payment plan. It is easy for tenants, so I just stay out of it. I try to avoid anything that will generate tenant calls. Call me lazy, haha.

  • Member since 2019 · 226 posts · 107 votes
    6y
    I stopped providing stoves.  They are never even close to clean when someone moves out and the need for repair is usually hidden until the next tenant comes in. The straw that broke the back was the tenant that destroyed a glass top stove that was part of a set and wanted me to fix it.  More trouble than they're worth.  I now let tenants know they can provide their own gas stove, or I'll pull one from 'storage' and they take what they get.  Most have opted for their own.  The refer, d/w, dryer and washer are on loan and another posted, repair replace is on the tenant.
  • Member since 2024 · 2 posts · 0 votes
    2y

    From my experience, it really depends on your situation. When I was outfitting my rental property, I opted for new appliances to attract tenants with the promise of reliability. However, I've also had success with quality used appliances from trusted sources. It's all about balancing cost and longevity.

  • Member since 2024 · 2 posts · 0 votes
    2y
    Quote from @Gagroot Alex:

    From my experience, it really depends on your situation. When I was outfitting my rental property, I opted for new appliances to attract tenants with the promise of reliability. However, I've also had success with quality used appliances from trusted sources. It's all about balancing cost and longevity.

    And hey, if you ever need advice or repairs for your washing machine, I've had great experiences with Washing Machine Repair. They're a lifesaver when it comes to keeping things running smoothly!
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