How to Cancel Your Water Heater Rental Contract in Ontario
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.
Why Should You Cancel Your Water Heater Rental Contract?
- High Costs: The average water heater rental contract lasts 15 years—more than double the cost of purchasing a new water heater outright.
- Limited Coverage: Most home insurance policies do not cover damage caused by tanks older than 10 years.
- Short Lifespan: Water heater tanks typically last 10–15 years, meaning many rental units may already be at the end of their useful life.
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?
Did You Inherit Your Water Heater Rental Contract?
If you purchased a home with a rental water heater, check your purchase agreement. Many new homeowners unknowingly inherit these contracts, which often include:
- Higher buyout fees than the equipment’s retail value.
- Equipment that comes with no warranty after buyout.
💡 Pro Tip: Builders often include rental contracts in new home construction. Be vigilant when signing agreements during home purchases.
Are you paying for protection plans?
Many rental companies offer optional protection plans, costing $10–$50 per month, for heating and cooling equipment.
These plans often cover older equipment that may no longer be efficient or reliable.
Instead of investing in these plans, save for a replacement and upgrade to a more efficient model when needed.
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, a closer inspection of the terms and conditions of the contract reveals that 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.
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 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.
Take a picture of your Water Heater data plate for your call to have that information on hand.
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 your existing supplier’s billing department. Call the billing department and ask to schedule a curbside pickup of your rental water heater or an outright buyout, whichever is cheaper.
After connecting with 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. Depending on the company you have rented from, this pick-up cost is usually in the $75 to $200 range.
If you replace your equipment, we will leave the old equipment in an easily accessible area for them to pick up or dispose of it for you depending on the situation.
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 installation date, 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 to create 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.
