Home & Garden

The Great Water Heater Rental Scam

  • Last Updated:
  • Dec 15th, 2017 8:30 pm
Jr. Member
Apr 23, 2010
196 posts
41 upvotes
Pickering
Hey Guys,

Need some help before I make any mistakes tho i fear i may have already. Purchased a 3/4 year old home at the end of september. I haven't paid the enbrigde bill yet which includes a section "charges from other companys".

My WH is from enercare at about 30$ taxes in. How do i go about canceling this rental without having to buyout. I had read a few times not to pay any WH fees and to call enercare to pick up their heater.

Will this do? if i haven't paid anything to them then I haven't agreed to their terms and agreement is what i understand the logic to be.

I don't mind buying a new water heater which is significantly better then this 30$ a month.

are my steps:
1. ask enbrigde to block third party charges. (pay my enbrigde bill)
2. Call enercare and tell them to pick up their WH.

What can i expect?

Thanks,
Mike
Deal Addict
User avatar
Oct 15, 2007
2761 posts
229 upvotes
mike1232 wrote:
Nov 11th, 2017 1:22 pm
Hey Guys,

Need some help before I make any mistakes tho i fear i may have already. Purchased a 3/4 year old home at the end of september. I haven't paid the enbrigde bill yet which includes a section "charges from other companys".

My WH is from enercare at about 30$ taxes in. How do i go about canceling this rental without having to buyout. I had read a few times not to pay any WH fees and to call enercare to pick up their heater.

Will this do? if i haven't paid anything to them then I haven't agreed to their terms and agreement is what i understand the logic to be.

I don't mind buying a new water heater which is significantly better then this 30$ a month.

are my steps:
1. ask enbrigde to block third party charges. (pay my enbrigde bill)
2. Call enercare and tell them to pick up their WH.

What can i expect?

Thanks,
Mike
What does it say about rental equipment in your purchase agreement?
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
Jr. Member
Apr 23, 2010
196 posts
41 upvotes
Pickering
Red_Army wrote:
Nov 11th, 2017 7:03 pm
What does it say about rental equipment in your purchase agreement?
I don't really have a copy of the rental agreement. I know its with Enercare, i've serached online and found this agreement and think my house falls under these terms.

https://www.enercare.ca/sites/default/f ... de_506.pdf

Sale of your Home -If you sell the premises, the Agreement shall
be transferred to the purchaser, and we will permit the purchaser to
assume your rights and obligations under the Agreement, effective from
the date of sale, provided that:
a. the purchaser is notified in the agreement of purchase and sale that
the Water Heater is rented and is subject to the terms and conditions
of the Agreement;
b. you advise us in advance of the purchaser’s name and the intended
date of sale;
c. the purchaser agrees in writing or by conduct to rent the Water
Heater in accordance with this Agreement; and
d. you have paid us all other amounts owing under this Agreement.
You hereby authorize us to respond to information requests relating to
your account made by or on behalf of the purchaser

I guess my loophole is C)? by not paying i am not agreeing to the agreement assuming I ask them to pick it up?
Newbie
User avatar
Nov 5, 2012
13 posts
Toronto
So I have taken possision of my new home for about six months, and I noticed that every month on my enbridge bill I have this water heater rental for 50+tax=57

I though a new unit would only cost 1500 so why pay almost 700 a year in rental, so I called Enercare and I was told this unit is requested by the builder and is an efficient one, if I were to cancel since this is pretty new I would have to pay a 'ransom' buy out fee at 4600 tax included as it has a life of 14 years left

I asked why I can not just ask them to remove this and install my own $1500 prefectly woring water heater, they told me when I took possion of the house from the builder I took over the rental contract as well, so I have no option other than to pay this 4600 to buy it out if I no longer wish to pay the monthly rent, and any dispute I have to settle with the builder(I am sure the builder has put all the legal words in those docs that I signed so there is nothing I can do with the builder)

Any one know if what Enercare told me was right? I have 2 option, either pay $57 a month for this water heater for the nexr 14 years or to pay $4600 to buy it out?
Deal Addict
Jan 25, 2007
2980 posts
821 upvotes
Paris
Correct. Your only option you could have done was never pay them in the first place. As soon as you paid them once, you have agreed to their terms and conditions. There is a very very long thread on this very topic.
Gbill2004: Thanks but I'll just smell the couch before/if I buy it.

jonnyb: I go in there like PICASSO and toss the glue everywhere, I don't care what house I'm on.
Deal Addict
User avatar
Mar 23, 2008
4977 posts
2472 upvotes
Edmonton
It's not a scam. I'd be willing to bet a nice dinner somewhere that it was in the documentation your builder provided, and that you agreed to.

You could try the HWT rental thread to see if there's something useful in there. But I suspect you're screwed.

C
Penalty Box
Dec 19, 2009
2556 posts
922 upvotes
mike1232 wrote:
Nov 13th, 2017 12:32 pm
I don't really have a copy of the rental agreement. I know its with Enercare, i've serached online and found this agreement and think my house falls under these terms.
He never asked if you read your rental agreement, he asked if you read your purchase agreement (for your house).
Jr. Member
Aug 23, 2017
101 posts
58 upvotes
hgs168174239 wrote:
Nov 13th, 2017 12:43 pm
So I have taken possision of my new home for about six months, and I noticed that every month on my enbridge bill I have this water heater rental for 50+tax=57

I though a new unit would only cost 1500 so why pay almost 700 a year in rental, so I called Enercare and I was told this unit is requested by the builder and is an efficient one, if I were to cancel since this is pretty new I would have to pay a 'ransom' buy out fee at 4600 tax included as it has a life of 14 years left

I asked why I can not just ask them to remove this and install my own $1500 prefectly woring water heater, they told me when I took possion of the house from the builder I took over the rental contract as well, so I have no option other than to pay this 4600 to buy it out if I no longer wish to pay the monthly rent, and any dispute I have to settle with the builder(I am sure the builder has put all the legal words in those docs that I signed so there is nothing I can do with the builder)

Any one know if what Enercare told me was right? I have 2 option, either pay $57 a month for this water heater for the nexr 14 years or to pay $4600 to buy it out?
I'm on the same boat with Powerstream as well. Last year I checked, it was 4K to buy it out.
Jr. Member
Apr 23, 2010
196 posts
41 upvotes
Pickering
pootza wrote:
Nov 13th, 2017 3:08 pm
He never asked if you read your rental agreement, he asked if you read your purchase agreement (for your house).
Oh yea, it does say its a rental, i know that, but my goal here is to get out of it if i can.
Deal Addict
User avatar
Oct 15, 2007
2761 posts
229 upvotes
mike1232 wrote:
Nov 13th, 2017 4:11 pm
Oh yea, it does say its a rental, i know that, but my goal here is to get out of it if i can.
The point is that if it’s in your purchase agreement that you take over any rental equipment then you assume the contract and would have to pay a penalty to get out
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
Deal Addict
User avatar
Feb 11, 2007
4754 posts
3306 upvotes
GTA
Enercare/Reliance/Powerstream all pay the home builders to install their tanks. You can't buy a house from most builders without being stuck into this ridiculous contract. You can guarantee that the gov't is getting a lot of kickbacks from them to allow this to continue.
Jr. Member
Aug 28, 2017
119 posts
156 upvotes
You 100% signed the agreement in your contract of your new home....and in there, it said it would cost $50 + tax.....how is this a scam? Why did you sign the document?
Deal Addict
User avatar
Feb 11, 2007
4754 posts
3306 upvotes
GTA
Rocko24 wrote:
Nov 15th, 2017 8:52 am
You 100% signed the agreement in your contract of your new home....and in there, it said it would cost $50 + tax.....how is this a scam? Why did you sign the document?
It is an incredibly bad deal, but it is not an illegal scam. It is very shady though, which makes it feel like a scam.
Sr. Member
Aug 16, 2009
718 posts
63 upvotes
Toronto
I think there's already big thread on this topic. Anyways, I'd buy it out if it cost less over a lifetime.
Newbie
Sep 10, 2017
15 posts
1 upvote
Hello Guys,

Need some input. I recently bought a house in Mississauga(2006 built) with 11 year old HWT(11 years old). The buyout comes around 380$ + tax. Monthly rental is 30$.
Is it a good option to buy now? If so, can I call them for service first and then buy it.

Thanks

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