Home & Garden

The Great Water Heater Rental Scam

  • Last Updated:
  • Oct 22nd, 2018 9:59 am
Member
Apr 23, 2010
224 posts
44 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.
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Oct 15, 2007
3552 posts
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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 Fanatic
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Feb 11, 2007
7611 posts
5937 upvotes
Oakville
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.
Banned
Aug 28, 2017
301 posts
357 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?
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Feb 11, 2007
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Oakville
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
874 posts
125 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
Sr. Member
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Aug 22, 2007
756 posts
107 upvotes
Markham
I recently bought a house with a 14 yr old HWT rental but it doesn't close until next month. Trying to prepare myself to not get scammed into another contract.

Lets assume the rental agreement ends in early 2018 based on assumption that it's a 15 yr contract.
1) Does that mean I now own the hot water tank or will the company take it back?
2) I'll assume at this point they'll try to convince me to sign up a new water tank rental with them? At this point this is when I deny them.
a) Will they then attempt to take back the old water tank or am I now free to take my sweet time to buy a new water tank?

Thanks!
Deal Addict
Dec 19, 2009
2878 posts
1175 upvotes
xdragus wrote:
Nov 20th, 2017 9:58 pm
I recently bought a house with a 14 yr old HWT rental but it doesn't close until next month. Trying to prepare myself to not get scammed into another contract.

Lets assume the rental agreement ends in early 2018 based on assumption that it's a 15 yr contract.
1) Does that mean I now own the hot water tank or will the company take it back?
2) I'll assume at this point they'll try to convince me to sign up a new water tank rental with them? At this point this is when I deny them.
a) Will they then attempt to take back the old water tank or am I now free to take my sweet time to buy a new water tank?

Thanks!
You will assume the terms of the existing contract when you purchase the house if it's listed in the purchase agreement and you have to pay monthly rent to the end of the contract in 2018. If you don't like those terms then talk to the rental agent or don't buy the house ... very simple.
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Oct 13, 2014
1396 posts
716 upvotes
Just Moved To Somewh…
^^^^^ +1

Specifically:

1 - Read the contract, is this a rental or rent to own. You are assuming a rent to own in your question.

2 - You will assume correctly.

3 - They will continue to charge you rent at the existing rate, until such time as you tell them to pick up their tank. Buy first then call for the pickup otherwise you may be without hot water until a new tank is installed.
“Before one can have a Clue they must first accumulate 10 Inklings. That said, all it takes is one bad post and you erase all Clues accumulated'"
Sr. Member
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Aug 22, 2007
756 posts
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Markham
Thanks for the replies. Yes it's listed in my purchase agreement.

Just making sure I don't fall for this scummy money grab for when I try to get a new one.
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Jan 25, 2007
4863 posts
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Paris
pootza wrote:
Nov 21st, 2017 5:03 am
You will assume the terms of the existing contract when you purchase the house if it's listed in the purchase agreement and you have to pay monthly rent to the end of the contract in 2018. If you don't like those terms then talk to the rental agent or don't buy the house ... very simple.
Reliance told me when I bought my house I could have told them to pound salt and come pick up their water heater. The minute I paid them I was agreeing to their terms and conditions (that I had never seen... what kind of bullcrap scam is that??). I am 99% sure on a resale that the water heater contract terms are not forced on you to buy the house but my experience is now 4ish years old.

Having said that, and thinking about it, I don't know who is responsible for fulfilling the contract if its a RENTAL. If its rent to own I would imagine a different set of conversations would need to occur about payouts and so on.
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
Dec 19, 2009
2878 posts
1175 upvotes
Jerico wrote:
Nov 21st, 2017 3:17 pm
Reliance told me when I bought my house I could have told them to pound salt and come pick up their water heater. The minute I paid them I was agreeing to their terms and conditions (that I had never seen... what kind of bullcrap scam is that??). I am 99% sure on a resale that the water heater contract terms are not forced on you to buy the house but my experience is now 4ish years old.

Having said that, and thinking about it, I don't know who is responsible for fulfilling the contract if its a RENTAL. If its rent to own I would imagine a different set of conversations would need to occur about payouts and so on.
I'm just a little confused on what these scumbag lawyers job is. Don't they run a search to see if there's anything owing on the house? It's pretty obvious when it's in the purchase agreement so shouldn't they be able to obtain the rental contract for you to review and find out what's owing ... or is that above their competence?
Deal Addict
Jan 25, 2007
4863 posts
1615 upvotes
Paris
pootza wrote:
Nov 21st, 2017 5:38 pm
I'm just a little confused on what these scumbag lawyers job is. Don't they run a search to see if there's anything owing on the house? It's pretty obvious when it's in the purchase agreement so shouldn't they be able to obtain the rental contract for you to review and find out what's owing ... or is that above their competence?
RELIANCE couldn't provide me the terms and conditions in force when I "rented" the water heater. How do you expect some poor lawyer to get them?
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
Dec 19, 2009
2878 posts
1175 upvotes
Jerico wrote:
Nov 21st, 2017 7:16 pm
RELIANCE couldn't provide me the terms and conditions in force when I "rented" the water heater. How do you expect some poor lawyer to get them?
Lawyers have a way of getting things ... and your trying to tell us you actually believed what Reliance told you .. lol. You must be the only one on RFD that believes anything that Reliance says.

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