Do you replace 13 year HVAC system with R22 refrigerant?

[David Shapiro]

Hi All, I have a 13 year old rental property in Austin that needs 4 lbs. of R22 refrigerant. I'm being told by the HVAC contractor that because of the phase-out R22 is $125/lb. If I'd like to find the leak that will cost another $275, and likely the coil in the air handler will need to be replaced. They're saying $1900 - $2500 to repair. A new system with R-410A is $5780. I could probably get that price down a bit, but this is a vendor that's been fair with me and services all of my properties so I'm not concerned about the $5780 (unless someone in central Texas has a vendor that can handle for under $4k :)

If R22 wasn't so expensive it would be an easier decision as I have other systems that are 20+ years old... I'm just concerned about needing to add more refrigerant down the road especially if R22 gets even more expensive. The repair has a 1 year warranty vs 10 year parts/5 year labor warranty on the replacement.

Has anybody else faced this decision?

Any thoughts or feedback would be appreciated. Thanks!

[Mike Dymski]

Consider calling apartment complexes in your area and get referrals and additional quotes.  Finding good HVAC contractors that are willing to repair systems is not easy but can save you a ton of money.  HVAC equipment is also a lot easier to fix and replace parts than most contractors will admit (or are willing or able to fix).  We have a bunch of 26 year old interior units and our maintenance guys fix them and replace parts because we do not want to convert the full system to 410 until the outside units fail.  Having a maintenance guy that does not do new installs is another good way to keep costs down because that guy is willing to try and fix it and get paid; otherwise, the new install goes to someone else.

I pay $1600 for 2 ton heat pumps with matching interior air handler (plus the auxiliary heat strip) from Chadwell Supply and then $1000 to the maintenance guy to install them (he's EPA certified).  Been quoted by others in the $3500 range installed, similar to what @Greg H. above pays.  Hard to make money as an investor paying homeowner and fancy wrapped van rates for repairs.  There are also ways to deduct these costs rather than capitalize them for tax purposes on multi-unit properties, which lowers the after-tax cost even more.

This is the kind of stuff that gets chalked up to "efficiency" on BP and that word does not do justice to the cost savings with certain vendors and investing strategies.  Good luck with this project.