Yes it’s that time of year again when everyone starts to put on their heating systems and complains about it getting too cold. As the heating systems have not been in use throughout the summer, now that they are being tested faults with the system are occurring some problems which could have been resolved earlier if tested rather than now when it’s unbearable to go a day without heating.
I spoke to a landlord just this week who owns a property in the derby city centre, she was upset at the fact that she had to find cash for a new boiler as the engineer who she normally uses advised her that it would be more cost effective for her to replace the boiler which is approximately y 14 years old.
She emailed me after following the derby city blog in recent weeks, and asked for my advice as to when it’s the right time to reinvest into a new boiler and is it worth repairing the old one. With all my experience in Property Management in Derby I can honestly say it varies boiler to boiler but usually after 13 years its best to replace a boiler that has a significant fault.
The reason for this is old boilers will develop problems almost every year, on average if it’s costing you £150-£200 to repair every year or needs a one off £350+ repair once a major component goes or when 2 components go, is it really worth it?
On average it costs approx £1100-£1200 to change a boiler. A boiler at this price should be good for 10 years without developing any problems, so on average if a landlord puts away £100 a year towards the cost of a new boiler after 11 years you will have the money to change it without feeling the pinch.
Now in the long run comparing £100 a year towards saving for a new boiler vs. £150 every year on average repairs is a no brainer. Not only is it cost effective but it leaves you with the peace of mind that for 10 years you don’t have to worry about this problem. The £100 a year saving is better option even when comparing to taking out a insurance policy which will cost you around the same on yearly policies but once you need a call out the excess charges will hurt your pocket more so. Insurance companies are there to make a profit so it is common sense to know in the long run it costs you more.
After seeing the calculations we both agreed that if she spent £400 to repair her boiler and there was no guarantee that another part would go, it’s not worth the risk. As you could imagine spending £400 one year if the following year it developed another £200 fault you could have been half way through a new boiler. Some repairs are worth the risk others not so, it’s best to take the advice of your gas engineer, if in doubt get another quote as it is probably one of the biggest one off costs in a buy to let property it is good to be sure.
If you have any property related issues please feel free to message me and hopefully we could go through your costings.