water heater rental - contract

[GreyGhost]

When my tank goes I'll replace with an electric for a number of reasons due to the location in the house. There's just the two of us so a decent electric shouldn't have recovery problems. Once the old gas one is out I can replace the electric myself. Payback should be about two years. I will look at the heat pump ones but I think the location will be an issue as well.

A buddy is trying to get a contract broken on a tankless system. Once the heater was installed they informed him that to maintain the warranty he needed to put in a water softener on a 15 year contract as well.

I currently have power vent NG so if the power goes out, I only have the hot water in the tank (but could easily fire it up with any generator). I plan on staying in this house for a long time. Mechanical room has enough volume for heat pump hot water but I plan on ducting it after install. Repurpose an existing duct from furnace to spare bedroom in basement to provide cool dry air there. Y with a damper lets me dump into mech room for additional flow or if the room is too cold. Duct intake air from main basement to keep air circulating and dry air in basement. Should improve comfort and cut down on a/c Bills in summer. Gas bill in winter may go up slightly but not necessarily. Heat for water heat comes from 97% efficient furnace instead of 80% efficient water heater. May actually save energy costs all year long.

 

[PrivatePilot]

Once the old gas one is out I can replace the electric myself. Payback should be about two years

Why go from gas to electric if you already have the gas there? Electric tanks cost a lot more to run comparatively.

When we bought our house in Y2K the first thing I did was refuse the rental agreement (that the previous owner had been paying for 13 years since the house was new) and a few months after we moved in I called them to come remove the thing. I bought an exact replacement at Canadian Tire off the floor for $500 or something like that and it's been there ever since.

The thermostat failed once and I replaced it myself for $100 or something like that. There's nothing particularly complicated about a hot water tank, any handyman with some moderate skills can fix or repair any issues themselves for waaaaaaaay less than the monthly rental cost with any associated "maintenance" plan.

In related news, it's probably end of life and needs to be replaced again. I'll do the exact same thing again, although I don't think I'll find one for $500 now, but no way in hell I'd every pay monthly for a water heater. I'm up literally tens of thousands of dollars at this point owning vs renting.

 

[mimico_polak]

Tell them to stuff their disposal fee and just plunk it at the curb. The scrap hawks will pick that up in about 90 seconds flat.

I just want to be sure I don’t keep getting charged. If they say scrap it it’s a done deal.

 

[crankcall]

I just want to be sure I don’t keep getting charged. If they say scrap it it’s a done deal.

exactly , if you dont return it or have them sign off on the scraping, in the paperwork , you still are renting it. Or you can pay the buyout fee, for the heater you plunked on the curb.
They have a whole room full of folks at the collections dept to bother you night and day on this .

 

[jeff96]

You don't want to pay enercare 1000 for a scrap water heater. Hold your nose, deal with them, then get on with your life

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[FullMotoJacket]

The thermostat failed once and I replaced it myself for $100 or something like that. There's nothing particularly complicated about a hot water tank, any handyman with some moderate skills can fix or repair any issues themselves for waaaaaaaay less than the monthly rental cost with any associated "maintenance" plan.

In related news, it's probably end of life and needs to be replaced again. I'll do the exact same thing again, although I don't think I'll find one for $500 now, but no way in hell I'd every pay monthly for a water heater. I'm up literally tens of thousands of dollars at this point owning vs renting.

^------ This. There's sale every week on water heaters. Knew my last one was on it's last legs so keep an eye on all the flyers and bought one that suited my needs for 30% off. Installed that myself and the aged OG one I replaced not that long after moving in (1st one on sale as well). Amortized out I've spent $3.83/month on hard goods.

 

[backmarkerducati]

Thanks for the responses.

The place is 2 years old. We are the third owners.

My lawyer didn't mention anything about a water heater rental and to this day I have never personally received a bill.

I've heard from others in the complex that the WH is a rental under contract.

I hate surprises. And I don't feel I should have to pay for something I didn't agree to.

When I bought the place it had brand new appliances. Heating, ac and furniture. Will I get a rental bill for this too?

If there is a rental WH and you were not told about it your Real Estate agent AND you Lawyer were incompetent.

You don't typically get an extra bill, it will just be a line item on your gas bill. Enbridge will collect every month for Enercare, etc. Usually marked rental equipment.
*****
What I really hate about the rental guys is the technicians are looking to rent you more equipment and will find a silly reason to shut off your gas as an aggressive sales technique. Oh, blah, blah, blah on your old furnace, it is winter I need to red tag you and shut off your heat. House came with a rental water heater, I had to physically stand between them and my boiler and repeatedly tell them to stay in their lane.....

 

[jc100]

Why go from gas to electric if you already have the gas there? Electric tanks cost a lot more to run comparatively.

When we bought our house in Y2K the first thing I did was refuse the rental agreement (that the previous owner had been paying for 13 years since the house was new) and a few months after we moved in I called them to come remove the thing. I bought an exact replacement at Canadian Tire off the floor for $500 or something like that and it's been there ever since.

The thermostat failed once and I replaced it myself for $100 or something like that. There's nothing particularly complicated about a hot water tank, any handyman with some moderate skills can fix or repair any issues themselves for waaaaaaaay less than the monthly rental cost with any associated "maintenance" plan.

In related news, it's probably end of life and needs to be replaced again. I'll do the exact same thing again, although I don't think I'll find one for $500 now, but no way in hell I'd every pay monthly for a water heater. I'm up literally tens of thousands of dollars at this point owning vs renting.

There’s one on sale in Cambodian Tire this week for $449 I think!

 

[bitzz]

The thermostat failed once and I replaced it myself for $100 or something like that. There's nothing particularly complicated about a hot water tank, any handyman with some moderate skills can fix or repair any issues themselves for waaaaaaaay less than the monthly rental cost with any associated "maintenance" plan.

In related news, it's probably end of life and needs to be replaced again. I'll do the exact same thing again, although I don't think I'll find one for $500 now, but no way in hell I'd every pay monthly for a water heater. I'm up literally tens of thousands of dollars at this point owning vs renting.

Electric water heaters are pretty simple things, that haven't got any new technology... EVER. A 2021 water heater might have a bit more insulation than a 1980 model, but that is the only difference.
The only thing that goes wrong is the elements and the anode... all easily replaceable. These parts cost about $20-25 each and are replaced by removing 4 bolts.
If you replace the elements and anode you might as well replace the blow off valve... another $25.
Now you, effectively, have a new water heater for $100
If you have city water a hot water tank SHOULD last forever. If you're on well water with a REAL HIGH iron content, like me, a hot water tank lasts about 4, maybe 5 yrs (I have a spare that I paid $20 for). The heater still works after 5 yrs, but the water smells like a wet dog.

Renting a hot water heater is financially stupid.
How we got "rentals" was we used to get a Flat Rate water heater, where you paid a monthly fee for the water heater AND the energy it used. The water heater was wired in BEFORE your electric meter, and the tank had a switch that would turn it off at peak hydro usage times. When I bought a house with one of these heaters in 1989, the monthly fee was $5.50. Mississauga Hydro cancelled that program in the '90's. I replaced the water heater... and found out the heater was NOT wired in before the meter like it was supposed to be, it WAS metered, so I got to sue Mississauga Hydro for 7 yr of payment... but I kept the electrical box on the fuse panel that WAS wired in before the meter... that I wired a grow op to... a win for me.
When I contacted Mississauga Hydro to tell them my flat rate water heater was metered, the nice lady on the phone tells me there is a BUNCH of flat rate water heaters wired like that, like ripping off their customers is a normal thing. I hate Mississauga Hydro!
Today a rental water heater is just a cash cow for whoever is renting it.

 

[Mad Mike]

I have a rental unit, cost me $9/mo in 2000 and approx $18/mo now. In 2010 Enercare replaced the unit at no charge and upped the unit tfrom 40 to 65 gallons to meet my then current needs (3 teens). They replaced the unit again in 2021. I pay about $18/mo which includes a full service contract and lifetime warranty.

I could have purchased 2 units of the same and had them installed for about $1200each. Over 20 years that would be about $10/mo -- I figure my average was about $15/mo. The $5 buys me peace of mind.

I figure we burned about 200 gallons of hot water a day when all the kids were here, that represents $60/mo in gas or $180/mo if we used electricity -- so gas is a no brainer even with the expensive tank and or rental.

 

[mimico_polak]

Only time I’ve ever seen electric water heaters was in my buddys 3-plex. Each tenant had an electric water tank that was wired into their separate hydro meters.

Our building had 2 water tanks that were both on gas and with radiators for a 6-plex would run a max of 800/month during winter.

 

[timtune]

I’ll be Devil’s advocate. We had a rental heater through the utility company here in Kingston. One night, late on the wife noticed a trickle of water in the cupboard where the heater was. Determined it was from the heater. Quick call to the utilities emergency number, then a transfer and 30 mins later a plumber turns up, removed the old heater, installed a new one shipped in that evening from a depot. Didn’t finish until really late on that night. No charge to us.

Charge isn’t outrageous but that’s maybe because the local utilities company sources these things. The plumber said the heater was close to completely failing and if it had we would have had serious water damage.

Similar story here too. I've had 2 tanks changed out at no cost (other than goofy high rental fee). I would ditch these guys in a heartbeat except my heater is gas and I'm not keen to muck with that. I own the one in my condo. It's electric and I've changed it once so far.

 

[bakaboy]

Weekend place had a rental heater for years.

I finally bought it out.

Just took them 2 years

2 years of me not making any payments and a manager who finally wanted it off their monthly no payment list.

Bought it out for far less than the 2 year rental fee that they were looking for.

 

[GVH]

Moms got the rentals with regular maintenance. One on demand for the furnace other regular on for the house water. The regular one crapped out and flooded the finished basement. Insurance fixed it and then sued the rental company for not doing regular maintenance. They won some money because she got her deductible back. The on demand kept failing do to crap install. Finally fixed.

 

[backmarkerducati]

During a friends rewire the tank said 240V so it got wired to 240V, kept tripping the breaker.... Someone put 120V elements in it....

 

[nobbie48]

Why go from gas to electric if you already have the gas there? Electric tanks cost a lot more to run comparatively.

When we bought our house in Y2K the first thing I did was refuse the rental agreement (that the previous owner had been paying for 13 years since the house was new) and a few months after we moved in I called them to come remove the thing. I bought an exact replacement at Canadian Tire off the floor for $500 or something like that and it's been there ever since.

The thermostat failed once and I replaced it myself for $100 or something like that. There's nothing particularly complicated about a hot water tank, any handyman with some moderate skills can fix or repair any issues themselves for waaaaaaaay less than the monthly rental cost with any associated "maintenance" plan.

In related news, it's probably end of life and needs to be replaced again. I'll do the exact same thing again, although I don't think I'll find one for $500 now, but no way in hell I'd every pay monthly for a water heater. I'm up literally tens of thousands of dollars at this point owning vs renting.

The design of the house means the gas heater is in my shop and subject to sawdust issues. The location also means a long run to the major taps, waiting for hot water.

 

[PrivatePilot]

2 years of me not making any payments and a manager who finally wanted it off their monthly no payment list.

Seemed like a risky game to play given they could have sent it off to collections or something and caused you a significant dent in your credit history as a result?

 

[bakaboy]

Seemed like a risky game to play given they could have sent it off to collections or something and caused you a significant dent in your credit history as a result?

If I cared about my credit history I guess that would have been a factor.

 

[SVeezy]

If I cared about my credit history I guess that would have been a factor.

Valid point.

Regardless rental fees on these items needs to be disclosed in the sale agreement and it’s on the lawyer to bring it to the buyer’s attention (assuming a lawyer was used). If they didn’t mention it that should be your first route to resolution.


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[PrivatePilot]

If I cared about my credit history I guess that would have been a factor.

If you don't care about it now, trust me, there will be some point in the future you wish you had.

Anyhoo....