VIC External Hot Water Systems - Proactive Repair and Cost to Replace

Discussion in 'Property Management' started by JustAMan, 16th Dec, 2021.

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  1. JustAMan

    JustAMan Member

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    Hi,

    I have a unit with a 33 year old Rheem external hot water system (i.e. its in the backyard under an eave). The ignitor failed so had to pay $300 to relight it (it was an emergency call by the tenant).

    A few questions:

    a) Does one proactively repair these systems or just wait for them to fail. Inherent in the question is whether one gets a better price by planning ahead vs just waiting to replace.

    b) The company who did the call out quoted $1550 (after subtracting the $300 call out fee) to replace the hot water system. Does that seem reasonable? (It's a Everhot 4 Star 135L Natural Gas Hot Water)

    Thanks.
     
  2. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    Yes that price is ok, and with HWS's you can do proactive maintenance by getting the sacrificial anode replaced to get more life out of them but if it's already started to rust and it's old just replace.
     
    Last edited: 16th Dec, 2021
  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That seems like quite a small system, is it a small villa?

    Generally if I'm replacing any hot water systems I change over to instantaneous gas hot water systems instead of tank/storage systems.
     
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  4. JustAMan

    JustAMan Member

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    Why? Does it offer the landlord any benefit?
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I find them to be lower maintenance as they have no tank to cause any issues, they can cope with increased loads (ie family of 5 or a couple living in the dwelling) and they are better for the environment as they only heat the water required
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    Can depend on the property. We thought of changing over for our PPOR when the old boiler died, but the cost was huge as our pipes need to be changed for higher volume needed for the instant units....

    The Y-man
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Distances and plumbing influence suitability for instananeous systems. Proximity to gas and plumbing distances may make it inefficient esp a larger dwelling.

    $1500 is pretty normal for most gas or electric systems that are common models. 10 yr warranty. Plus temp valve if needed.