In Ontario, most homeowners rent a water heater, but in Alberta virtually nobody does.
It’s hard to explain the difference other than habit. Whether one or the other is a better deal depends on how you look at it. In straight cost terms, over time buying is a better deal. When you factor in convenience and hassle-free service for many people renting may be worth the extra cost.
The cost of renting in Ontario is between $13 and $26 a month from Direct Energy or Reliance Home Comfort depending on the size of the heater. You don’t have to worry about maintenance or replacement. When you buy you’re on the hook for any issues that arise after the warranty expires.
The heaters cost between $800 to $1,300 depending on the size, plus $400 to $500 to have them installed. Since a typical heater lasts about 15 years, owning trumps renting after six or seven years, assuming no maintenance is required over that time.
Take the time to read through the document, have a friend or neighbor read it, and ask questions to ensure you understand what you are signing
Be particularly cautious with companies that sell and rent water heaters door-to-door. Contact a qualified contractor instead.
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Two visits over the typical lifespan of 15 years may cost a homeowner $1,000 out of pocket,
Direct Energy and Reliance have a shopping list of reasons why you should rent: An affordable monthly rate, convenient billing, same-day service if you have problems, no charge for parts and labor, and the peace of mind.
In 2012, the federal Competition Bureau took action against both Direct Energy and Reliance, seeking penalties of $15 million and $10 million respectively for water heater return policies that were nearly impossible to break with aggressive retention tactics and stiff penalties.
The case is before the Competition Tribunal with hearings scheduled for January 2015.
Direct Energy has more than 1 million rental customers in Ontario, but none in Alberta. One of the reasons is ahabit. Renting is rarely done.
“Ontarians have been renting water heaters for close to 50 years and are comfortable doing so but Albertans have not,
The Larsens own the water heater that came with the house they bought in Lethbridge in 2011. If a rental option became available, they’d probably stick with ownership.
When their water heater eventually packs it in they’d like to try a tankless, or “on-demand” heater which is much smaller and can save on energy costs. Tankless heaters provide an infinite supply of hot water for as long as it’s needed. The system can cost twice as much to purchase and install as a tank-heater, but the lifespan is twice as long and you’ll save up to 50 percent on your energy bills.
“We need all of the storage space we can get and like the environmental benefits of the on-demand system,”