Home & Garden

The Great Water Heater Rental Scam

  • Last Updated:
  • Dec 15th, 2017 8:30 pm
Deal Fanatic
Apr 20, 2011
7607 posts
2520 upvotes
ON
No, it is not the same as you stated. There is a very real difference, not all direct vent are powered by an electric motor. There are direct vent models with no motor at all.

What you said would only confuse him more as direct vent does not mean power vent. It could, but it could also not.
It means exactly that - power used to vent. Power vent informs the vent direction (only available in direct vent), but the vent direction does not inform the method.
In a simpler logic scenario: pregnant, therefore woman. But you can't say woman, therefore pregnant.
Newbie
Oct 23, 2017
59 posts
14 upvotes
Burlington ON
The poster is not confused - my heater connects to a vertical chimney (B-Vent). I wanted to make clear for purposes of this discussion that my rental rate is not for a power vent model. The discussions in this thread seem to involve higher rental amounts and perhaps I am the only one with the $15 model. I know they do try to upsell to higher efficiency appliances. AT $25 I would not be renting.

BTW I have done 15 real estate transactions and have never seen a rental water heater become a significant impediment - $15 a month just aint gonna make a difference in the scheme of things IMHO. (Unlike say, a rental furnace, another area where people get in trouble).

But thanks for your wisdom OP. I can see that many folks have learned from this thread.
Deal Addict
Jan 25, 2007
2980 posts
822 upvotes
Paris
Dealmaker1945 wrote:
Nov 22nd, 2017 4:35 pm
. If it cost me $1200 before tax to have my own unit installed, the payback would be about 7 years!
The model you have costs about $400 at a store plus $200ish to put it in. Your calculation is double the most likely cost. So 3.5 years.
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.
Penalty Box
Dec 19, 2009
2556 posts
922 upvotes
Dealmaker1945 wrote:
Nov 22nd, 2017 11:08 pm
BTW I have done 15 real estate transactions and have never seen a rental water heater become a significant impediment - $15 a month just aint gonna make a difference in the scheme of things IMHO. (Unlike say, a rental furnace, another area where people get in trouble).
aqnd wrote:
Oct 15th, 2017 2:47 pm
The last 4 people I spoke to who bought homes this year all said they made sure there was no rental water tank. Most are starting to wake up to the water tank scam.
And I didn't say anything about it, they mentioned it to me. And 50/50 male/female at that.
So please, don't make generalizations that you can't possibly know are true for everyone.
I guess my generalizations came true.
I would put my faith in what Dealmaker 1945 is saying and don't believe a bit what aqnd spewed out.
Newbie
Nov 25, 2017
1 posts
1 upvote
We regret that we stayed with Reliance renting the water heater for almost 8 1/2 Yrs. We called for service the moment we noticed leak from the heater and was set up for the nxt evening. The technician from one of their contractors showed up last minute of appt window which is 11 pm just to say that there is nothing wrong with it, as for some reason, the heater stopped leaking, inspite of telling him what happened about leaking and it making noise, he did not nothing and just left. The next morning, the heater stopped wd working and spilled too much water. I called Reliance again, i’ve mentioned about what happened with the technician the night before. The customer service was so comforting enough and even managed to tell me that someone from the same contractor but differeny technician would call me in an hour or so and was told to call back if we do not get a call after 2 hrs and so I did. It turned out that the booking was made for the a day after. I got so upset and insisted that it’s emergency, we do not hot water and heat. The lady managed to send in their in-house technician after i asked and insisted that. But when the guy came (at the last minute of appt window again (10-2pm), he told us that the heater has to be replaced. But he told us that Reliance does not have the same water heater anymore and that if new type will be installed, we ahve to get a contractor to do the drilling and evrything doe them to install. What! We’re not supposed to shoulder that! And so I called Reliance again and told them what we were told. The lady told me that that should not be the way. So I was like, what is happening? Y Is Reliance not consistent. So the lady confirmed to me that she set us up for Nov 25th 8-1pm to have the unit replaced. So the day came. At around 12:30 i called areliance again to confirm if someone is really coming as it’s already running and i was told that someone is, but 1:30 came and no onw showed up. I called again and was told that there’s a note saying that appointment has to be re-booked as there is no replacement service on a weekend. Like what! Again! I still have to deal with it! So i insisted for a Supervisor and was told that there is nothing they can do but to re-book. I was like, what the hell! You guys keep on pulling our legs, you would say one thing but will do another thing! They do not care about the customer’s sufferings and so easy for them to say re-book! So we decided to not continue the rental anymore. I told the lady that Reliance should change their name! It’s not speaking for itself. They should be called Unreliable! So we cancelled their service. Enough with this hell with them! And their not done with ripping us off, we have to pay $40 for cancelling the service and if we choose to have the unit picked-up, another. $65.
So stay away from Reliance! They’re only reliable when taking your quarterly payment but so UNRELIABLE when it comes to service.
Deal Fanatic
Feb 14, 2006
8484 posts
452 upvotes
Toronto
Thanks RFD for this informative thread.

We bought a new house and the previous owner had a new water tank installed in 2014 ... some PowerVent PV60 60gal .

Read this thread, did some math, and made the decision to purchase it outright from enercare. It was painful though - $1185 + HST. But renting it each month would've cost $34.19!

Cheers! Rental free. Encouraging my parents to do the same now.
[OP]
Deal Addict
User avatar
Jan 2, 2012
1838 posts
760 upvotes
KINGSTON,ON
mcg wrote:
Dec 5th, 2017 12:36 pm
Thanks RFD for this informative thread.

We bought a new house and the previous owner had a new water tank installed in 2014 ... some PowerVent PV60 60gal .

Read this thread, did some math, and made the decision to purchase it outright from enercare. It was painful though - $1185 + HST. But renting it each month would've cost $34.19!

Cheers! Rental free. Encouraging my parents to do the same now.
Excellent! Thats for posting your experience.
I know it's tough to swallow that amount, especially when you have all the other expenses associated with a new home. That is one of the reasons, I'm sure, that keeps the rental tank industry running.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
guys need some advice

I'm purchasing a home and in the agreement it indicates that i will be assuming the HWT for $34.18 a month.

I called to inquire about cancelling it and returning the tank

So I called to inquire about a buyout and here are my options -> My tank is since Jan 2013 and the previous owner is paying $34.18 a month including taxes (which I find a lot)


Before the 5 year mark -> buy out -> 1405.80 + HST

• $1072.50 + HST – Drain, disconnect and removal from the home.

• $1072.50 + HST Pickup from the first floor from home or garage/outside.

• $600 + HST Dropped off to our nearest drop off location.



After 5 years (Feb 2018) -> 1306.65 + HST

-$472.50 +HST Drain, disconnect and removal from home

- $472.50 +HST Pickup

- $0 to Drop off


Is there a way to forcefully not pay it at all ? I'm just concerned that I would get in trouble for this.

When speaking to Reliance, I had shown the customer representative my purchase agreement section only the part that contained "buyer assumes HWT contract", upon their request as they would not disclosure the previous contract for privacy reasons since they did not know who they were talking to -> made the mistake here perhaps ?

Or is my best option is to wait until Feb 2018, and disconnect it myself (or have someone install a new one and disconnect the old one for me) and then drop it off myself so I would be charged $0

any advice would be appreciated.

Thanks
Deal Addict
User avatar
Jan 6, 2002
4972 posts
4900 upvotes
Toronto
Sounds like the Feb 2018 target date, if accurate, is the best option. Just get someone to install something and drop of their tank somewhere.
I've got a pretty good friend who's seen me at my worst.
He don't care if I'm a blessing or a curse,
But he always shows up when the chips are down.
That's the kind of friend I like to be around.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
hoob wrote:
Dec 6th, 2017 7:28 pm
Sounds like the Feb 2018 target date, if accurate, is the best option. Just get someone to install something and drop of their tank somewhere.
Thanks for your advice, that’s what I also thought and was suggested by others on this forum
Deal Addict
User avatar
Jul 15, 2003
2677 posts
448 upvotes
Ontario, Canada
Ffffff**%@$*%@#*$%@#k!

My parents decided to buy a house in a new development in Stratford ontario. I cautioned them about reliance and rental heaters. I even emailed the developer myself to see wether they allow people to purchase a tank from the builder instead of signing a rental agreement. The developer said that yes it was an option. I told my parents to make sure they did this.

Visited the house for the first time and what's in the basement? Water heater with a big Reliance sticker on it. BAH!

Next time i visit i'm going to try to find their paperwork and/or account number and find out exactly what costs reliance will quote me on a 7 DAY old tank for buyout, them removing, or us dropping off the tank back to them.

i'm guessing buyout around $4000. Them removing around $2000. Dropoff around $1600. <sigh>
Deal Fanatic
User avatar
May 17, 2006
5042 posts
807 upvotes
GTA
You did your part, your parents did not follow through by ensuring it was not a rental.
Kevinck wrote:
Dec 7th, 2017 11:16 am
Ffffff**%@$*%@#*$%@#k!

My parents decided to buy a house in a new development in Stratford ontario. I cautioned them about reliance and rental heaters. I even emailed the developer myself to see wether they allow people to purchase a tank from the builder instead of signing a rental agreement. The developer said that yes it was an option. I told my parents to make sure they did this.

Visited the house for the first time and what's in the basement? Water heater with a big Reliance sticker on it. BAH!

Next time i visit i'm going to try to find their paperwork and/or account number and find out exactly what costs reliance will quote me on a 7 DAY old tank for buyout, them removing, or us dropping off the tank back to them.

i'm guessing buyout around $4000. Them removing around $2000. Dropoff around $1600. <sigh>
.

We Shall Never Forget 7/08 '14
We Shall Never Forget 8/19 '11

Toilet Paper Calculations Thread
Newbie
Nov 22, 2011
55 posts
19 upvotes
Paradise
Lowes prices $1500 for hot water tank installation and vent replacement. On top of that, the GSW 50 tank costs $850. Totally, the final cost to replace a new tank is around $2350.

Is it normal nowadays?
Lowes's contractor said the new code is white tube while mine is black, so it costs more than normal.
In addition, $1500 is the price after tax and $15% off for Lowe's installation service.
[OP]
Deal Addict
User avatar
Jan 2, 2012
1838 posts
760 upvotes
KINGSTON,ON
sthence wrote:
Dec 7th, 2017 6:42 pm
Lowes prices $1500 for hot water tank installation and vent replacement. On top of that, the GSW 50 tank costs $850. Totally, the final cost to replace a new tank is around $2350.

Is it normal nowadays?
Lowes's contractor said the new code is white tube while mine is black, so it costs more than normal.
In addition, $1500 is the price after tax and $15% off for Lowe's installation service.
I put a 40 gal PV tank in my Mum's place last summer. It was around $2300. There was no piping in place, so the installer had to run about 3 metres worth, plus drill the hole yin the block wall. Gas line may or may not have needed tweaking (I didn't see the final install in other than a photo sent to me.)
Deal Addict
User avatar
Jul 15, 2003
2677 posts
448 upvotes
Ontario, Canada
sthence wrote:
Dec 7th, 2017 6:42 pm
Lowes prices $1500 for hot water tank installation and vent replacement. On top of that, the GSW 50 tank costs $850. Totally, the final cost to replace a new tank is around $2350.

Is it normal nowadays?
Lowes's contractor said the new code is white tube while mine is black, so it costs more than normal.
In addition, $1500 is the price after tax and $15% off for Lowe's installation service.
That price sounds more like an initial install, and not a replacement.

In 2003 i had a contractor replace my rental heater with one bought from him. $1500+tax included disconnecting and returning the reliance tank to reliance, purchasing the $900 50 gallon powervent new tank, and replacing black pipe with white pipe.

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