What the water heater rental companies don’t want you to know:
Estimated Reading Time: 5.5 minutes
Readers Note: This article speaks on broad information regarding rental contracts, the specific details can differ greatly depending on the product, company, and service. One section may not apply to all companies or products. The intention of this article is to make the consumer aware of their own situation and to consider their options going forward when it comes to rental contracts.
A hot water heater is a very important appliance in your home
It delivers hot water so you can take a shower, wash dishes, or do laundry. It is used regularly in our daily lives, and a staple in our modern world. Renting a water heater may seem like an easy solution to the problem of not having one at your place, but there are many more benefits to owning your water heater.
Most aspects of this article can apply to all HVAC rental equipment including furnaces, air conditioners, water softeners, air purifiers, and anything else we have seen as rentals in the homes of consumers. We will specifically use water heaters as the example term because it is the most common home rental equipment in Ontario.
It is time that you know the truth
The water heater rental services are not the best option for the environment, your home, or your pocket. Many companies prefer to rent out hot water tanks because it is easier for them to keep track of the maintenance schedule and they will not have to carry any responsibility if anything happens. But there are many disadvantages to this service, which may include:
Higher Energy Costs - (This includes gas bills and utility bills)
Unreliable Hot Water Supply
Secretive Contracts - (Which can include a lien on your home)
“Fully covered” is not fully covered - (Many customers still end up paying for repairs, even while under a rental contract)
Another unknown fact is that water heater rental companies are not always what they seem to be. Many of these companies are actually running on a commission-only basis. This means that they make money by selling hot water tank rental contracts, but do not earn money through the rent generated over time (because another company handles the upfront cost to the small business by providing them with the equipment, and collects the rent).
This can lead to high-quality equipment being unavailable for customers because of the lack of profit motive. Only the large well-known water heater companies profit from the rental payment process; not the individual contractor or “the small guy” who might be offering it to you. This is exactly why Platinum Air Care is also able to offer rental contracts to our customers if specifically requested.
Auto sign-up and auto-renewal contract nightmares
Fortunately, our government has reduced the ridiculous laws and lock-ins regarding contracts; this includes garbage disposal, water heaters, HVAC equipment, and even cellular phone plans, but it is still something consumers should be aware of.
Auto-sign up is primarily noticed with new homeowners when purchasing their home. New homeowners are not aware that their home hosted a rental water heater before the purchase and that it is automatically transferred to the new homeowner as soon as they move in. Without even realizing it, you have already signed a long-term commitment and were not aware of your options.
When it comes to auto-renewal, companies expect customers to contact them typically within 6-months of the contract expiry. These details are usually not easily found unless you specifically read the fine-print or call to specifically inquire about this to the company directly. After all, when was the last time you were made aware that your water heater rental contract was close to finishing and up for renewal?
Auto-renewal is renewed when you simply did not cancel it. This is usually the time when the rental company also starts to increase the monthly payment as well, and the worst part about it; you start to pay more money for the same old equipment. Paying more for old, outdated, and inefficient equipment just doesn’t make sense.
Things to consider when renewing your water heater rental contract:
How much did the rental contract cost you during it’s entire commitment?
Did you benefit from the included services (such as repair or maintenance) and were you satisfied with these services?
Is there an incentive to renewing the contract? (Such as substantial discounted rental fees for keeping old equipment, or a new piece of equipment upon renewal)
Many companies are now more up front in this regard, but it is still not common knowledge to see the break down of what you paid over the course of your contract without doing the calculations yourself.
Consider the long-term cost of renting your water heater
It’s easy to sign up for a new water heater, it’s only $35.95 a month! (actual price varies) But for how many months? In 10 years that $35.95 payment became $4,314.00; and that doesn’t include sales tax or increased rental fees over time.
The actual cost is likely to be over $5,000 in 10 years’ time when you consider the above.
Note: The renting calculator does not compensate for gradually increased rental fees; therefore your actual result may be higher than shown!
(If the calculator does not load, please refresh your webpage)
The appeal of renting your water heater
A hot water tank rental company provides the tank, which usually comes with all needed components, so there's no need to buy anything else. You won’t have to find a contractor or install the water heater yourself. With one call the water heater company can have installed and everything done in close to an hour with no payments upfront (but proper financing to purchase your water heater is similar).
One of the biggest advantages of a rental hot water heater is that you don’t have to worry about buying one or replacing it when it starts breaking down. If anything happens to your hot water heater they will replace it for free. So you don’t have to worry about repairing or replacing it yourself.
Some property owners and landlords prefer rental tanks because they feel it is less of a hassle to their renting business and simply make the tenant pay for it. The same goes for businesses and franchises.
Platinum Air Care offers a wide range of services for your home
From tank to tankless water heaters, we provide you with a high-quality, energy-efficient water heater, we'll also change or clean the filter (yes, even water heaters have filters!).
If you have questions about your current water heater rental contract, we can help! When you’re ready to make the switch to own we will go through the hassle of returning your old rental water heater back to the rental company on your behalf so you don’t have to.
Our experts can also help you with heating and cooling, furnace inspections, air purification, water filtration, and more! Our goal is to give you the same peace of mind you would get from renting, except the benefit of owning your new energy saving equipment.
