Want to cancel your rental water heater contract?
Use the information below to get help.
The average water heater rental contract is paid for 15 years. This cost is more than double the value of purchasing a new water heater. The suggested useful life of a water heater tank is 10-15 years, as well most home insurance policies do not cover damage from floods caused by tanks older than 10 years.
Learn the truth about rental furnace and air conditoner contracts. Click here for details.
The main reason to own your water heater:
Parts and labour warranties offer the same coverage as rental contracts.
If you have rental equipment installed before 2015, you should consider getting out of your contract immediately. Understand that paying any buyout fees, or penalties, is less than the cost of renting. Then when your tank does decide to fail, you can purchase a new one then.
Use this information to help guide you on your options. It clearly explains how to proceed with getting out of your rental contract.
Always consult with legal counsel before entering into contracts. This prevents you from falling victim to unfair practices.
Are you sure your existing water heater is even yours?
A rental water heater is typical for most homeowners in the Greater Toronto Area. Most homeowners purchase their home with a rental product and assume it’s a normal thing to do.
Unfortunately, many consumers are unaware of the legal terms of these contracts and enter into lease agreements. Also, many sales reps are not informing their clients that rental contracts include liens against their property. A lien against your property hinders your ability to sell or refinance.
Did you inherit your rental water heater from the purchase agreement of your home?
So, maybe you purchased a home, and the previous owners included the rental contract in the purchase agreement. Most realtors label it as standard practice, and its easily overlooked. You should request a buyout from the previous owners before completing the sale.
New owners often take over rental equipment as standard practice. Builders have benefited from these contracts for decades as part of new home construction. The new homeowner will be locked into that contract and must pay a higher buyout than retail value. On top of that, when you buy out a rental contract, the equipment comes with no warranty.
Are you paying for protection plans?
Many companies that offer rental water heaters also suggest customers pay monthly for protection plans. These plans range from $10 – $50 per month. They are usually for heating equipment and cooling equipment. These are sold in case there is a breakdown, and the company would come out to fix them at no cost. These plans are sold to customers and billed with the water heater rental contract.
We do not recommend these plans for older equipment that is at the end of its life. Since investing in older, inefficient equipment is not an intelligent investment. Instead, you could save money for eventually buying a new upgraded model when the old equipment needs to be replaced.
How is owning better than renting?
City Home Comfort provides comprehensive warranties and low-interest financing options. These are provided for all types of water heaters.
A well-known “reliable” HVAC contractor in Ontario may offer a rental contract claiming to be 84 months. However, with a closer inspection of the terms and conditions of the contract, it is a minimum of 84 months.
These rental contracts are for 15 years (the average life span of the equipment). This is common, especially for tankless water heater equipment.
Thankfully Consumer Protection Ontario has enforced some mandatory regulations for Leasing or Renting HVAC equipment. Consumer Protection Ontario allows you a 20-day Cooling Off Period and shows the exact Total Payable amount of the agreement. It also shows the equipment’s actual retail value.
For an example of a tankless water heater rental actual cost, see the image below:
City Home Comfort provides expert advice to all our clients. We will explain the exact process and possible cost for you to cancel your contract and schedule a pick-up. Follow the steps in this guide to help cancel your rental contract:
2 Steps to getting out of your contract.
First step: Who is your current Provider
Determine which company you are currently renting your water heater from.
The information will be on the bill you are paying. Many homes pay for their rental charges in the “Other Companies Section,” 3rd page, of their Enbridge Gas Utility bill.
Take a picture of your Water Heater data plate for your call to have that information on hand. For an example, see the image.
Second step: Contacting Your Current Provider
Reach out to your existing rental water heater provider. This call aims to schedule a pickup of your rental equipment. These calls can take up to an hour, so have some time. You should contact the billing department of your existing supplier. Call the billing department, and ask to schedule a curbside pickup of your rental water heater.
After you’ve connected to a Contract Specialist, inform them you are purchasing a new water heater. Then tell them you are requesting a pick-up of their rental equipment. Consequently, this pick-up cost is usually in the $75 to $200 range, depending on the company you have rented from.
After installing your new equipment, we will leave the old equipment in an easily accessible area for them to pick up.
Phone Call Tip:
If the phone call representative states, you cannot return the equipment. Immediately demand a copy of your agreement to verify your terms. If they cannot provide this, it may be a tactic to keep you locked in. Most of the employees have titles labelled “Customer Retention Specialist”.
Some More Useful Tips:
It’s always good to know that you can get out of your rental contract and purchase a new water heater. Even if it’s a few years old, we can help you learn about the terms of your contract.
Locate a copy of your current rental contract or lease agreement.
To sum up, read the terms and conditions to find out precisely what your termination rights are.
What year was your current unit installed?
Find the date of installation: which can be on the gas pressure tag, equipment label, or rental agreement. If there’s no tag, find the serial number. Then use Google to search “serial number decoder” for your brand water heater.
Contact us now to help get you started
Speaking with our team ensures a fair discussion with the goal of creating a long-term relationship. We offer industry-leading warranties, the highest-rated equipment, and the best installation procedures. So, we will always consult you on the most cost-effective and efficient solution for your home.
