Home & Garden

The Great Water Heater Rental Scam

Deal Fanatic
Apr 20, 2011
7747 posts
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ON
950/17.5 = 55. Lets say 5 years break even.
You can probably expect at least 12 years out of it, hopefully a couple years more.
Lets say 15.
So you have 8 years of tank life for $950 = $118.75/yr

If you return it and buy a new one, you're looking at $375 + $800 or so (depends on model, area, install requirements, etc - based on your rate it sounds like a cheaper chimney model. Powervent are typically 1.5x that monthly rate, but also 1.5x the purchase price)
But you'd get a full 15 years, assuming it lasts the same as your current one (which is an assumption even that one lasts 15)
1175/15 = $78/yr
Switch to powervent for 1575/15 = $105/yr

If you're in it for long term, return and buy a new one seems the better choice financially.
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Oct 24, 2008
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We just bought our house in June which came with a rented water heater. Now that we've stabilized our finances, I want to finish with renting.

Here is my situation:

I called Enercare (our provider) and they told us that our water heater is a 50 Gal unit installed in 2003.
I told them that we noticed a little bit of odd behavior, that we had to turn the water heat up a little higher than normal to get hot water. Though on the hot setting it still comes out super hot. Not sure if this is in our imagination or signs that the water heater is going.
Enercare said because the unit is so old, they won't send someone to inspect it, they would just send someone to exchange it for a new one - I declined.

Here are my options (from Enercare)
1) Take a new water heater rental plus they offered me 6-months free (I won't go this route)
2) Buy a new water heater through Enercare
- They told me it would be a similar 50-gallon unit
- Brand could either be "Reem, GSW or Giant"
- Enercare warranty would be for 1-year but she did not know what the manufacturer warranties were
- Cost would be $1,830.60 (including HST) installed. +$75 to remove the old tank (or I do it myself). + any additional (I believe my vents will need to be replaced as they are the "black plastic" ones. My basement is unfinished currently so it would be easy to get to.

3) Buy the existing water heater for $193.23 (including HST). Cheap, but a bit of a roll of the dice. We are starting to finished our basement and the last thing I want is for a leaky water heater to do damage. The tank might be fine for years for all we know.

What do you think of these options (Excluding #1)? And How does Enercare's new tank quote compare?
Deal Fanatic
Apr 20, 2011
7747 posts
2750 upvotes
ON
Buy it out.
If it lasts 4-5 months you break even. Depending on the rate. You'd have to pay $75 to return it anyway, so it's really costing 193-75=118.

Then you're free to start shopping for the best option. I would see if you could get someone in to change the piping and also give it a quick inspection and let you know if it needs replacing sooner rather than later.
13yrs isn't necessarily end of life. My parents have one that's coming up 20 this year.
Deal Expert
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Oct 6, 2010
15881 posts
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Toronto
bpcrally wrote: We just bought our house in June which came with a rented water heater. Now that we've stabilized our finances, I want to finish with renting.

Here is my situation:

I called Enercare (our provider) and they told us that our water heater is a 50 Gal unit installed in 2003.
I told them that we noticed a little bit of odd behavior, that we had to turn the water heat up a little higher than normal to get hot water. Though on the hot setting it still comes out super hot. Not sure if this is in our imagination or signs that the water heater is going.
Enercare said because the unit is so old, they won't send someone to inspect it, they would just send someone to exchange it for a new one - I declined.

Here are my options (from Enercare)
1) Take a new water heater rental plus they offered me 6-months free (I won't go this route)
2) Buy a new water heater through Enercare
- They told me it would be a similar 50-gallon unit
- Brand could either be "Reem, GSW or Giant"
- Enercare warranty would be for 1-year but she did not know what the manufacturer warranties were
- Cost would be $1,830.60 (including HST) installed. +$75 to remove the old tank (or I do it myself). + any additional (I believe my vents will need to be replaced as they are the "black plastic" ones. My basement is unfinished currently so it would be easy to get to.

3) Buy the existing water heater for $193.23 (including HST). Cheap, but a bit of a roll of the dice. We are starting to finished our basement and the last thing I want is for a leaky water heater to do damage. The tank might be fine for years for all we know.

What do you think of these options (Excluding #1)? And How does Enercare's new tank quote compare?
Maybe you should start reading from this post out to see what happened:

great-water-heater-rental-scam-1126945/29/#p27089426

There are many examples in this thread.
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Deal Addict
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Oct 24, 2008
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koffey wrote: Maybe you should start reading from this post out to see what happened:

http://forums.redflagdeals.com/great-wa ... #p27089426

There are many examples in this thread.
Thanks for your feedback. My wife and I discussed it and I think we've decided to simply buy a new water heater. I'm going to call around over the next few days and get some estimates.
I was thinking of buying ours out, then we're in for another ~$200 for buying the unit (which seems to be acting funny). Currently our basement is finished and in the we're in the process of finishing it. So rather than risk damage or having to haul water heaters through our new finished basement we'd just rather get it over with. Plus then piece of mind too, I don't want to be without hot water.

Any current water heater deals I should be looking at? Current is a powervented 50Gal. From this thread it looks like Lowes is popular, I'll give them a call.
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Oct 6, 2010
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Toronto
bpcrally wrote: Thanks for your feedback. My wife and I discussed it and I think we've decided to simply buy a new water heater. I'm going to call around over the next few days and get some estimates.
I was thinking of buying ours out, then we're in for another ~$200 for buying the unit (which seems to be acting funny). Currently our basement is finished and in the we're in the process of finishing it. So rather than risk damage or having to haul water heaters through our new finished basement we'd just rather get it over with. Plus then piece of mind too, I don't want to be without hot water.

Any current water heater deals I should be looking at? Current is a powervented 50Gal. From this thread it looks like Lowes is popular, I'll give them a call.
Lowes does have sales on their 50G power vented unit from time to time. If I were in your shoes, I would buy this out and start putting money aside for a replacement that you can purchase on your own. Keeping in mind that you may need to upgrade your pipes when the time comes for a new install. I really wouldn't be concerned about this tank leaking, but there are options if you think this might happen. For example, you can get a little base catch pan that the tank will sit in, if the tank leaks, the water is confined to the pan and they are cheap.

Catch basin from Rona

Image
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Newbie
Jan 2, 2017
20 posts
12 upvotes
Ottawa
Guys,

I am going to buy a townhouse and asked them about the hot water rental. They showed me the price which I would pay and was about $47 including taxes. This was from Reliance. I asked them (the builder) if there is a buyout option and they said after 1 year and the price was about $3500 (ooooooh painful). I have not yet signed anything yet because I want to be sure that is a way out of this scam before putting my signature in an agreement. Most of the people in this thread are here for the same reason. Sorry, if my question has been asked in the past, I was not able to read all of the 82 pages.

-Is there any option to buy a smaller less expensive water heater and after one year the price for the buyout is less than $3500? (I asked the builder and she said no, but was not very convincing)
-Is there any option to buy the house and the first day/week/month to cancel the agreement with Reliance and buy my own water heater? (I didn't ask the builder for this)
-Any other options?
Deal Fanatic
Dec 19, 2009
6197 posts
4451 upvotes
astro313 wrote: Guys,

I am going to buy a townhouse and asked them about the hot water rental. They showed me the price which I would pay and was about $47 including taxes. This was from Reliance. I asked them (the builder) if there is a buyout option and they said after 1 year and the price was about $3500 (ooooooh painful). I have not yet signed anything yet because I want to be sure that is a way out of this scam before putting my signature in an agreement. Most of the people in this thread are here for the same reason. Sorry, if my question has been asked in the past, I was not able to read all of the 82 pages.

-Is there any option to buy a smaller less expensive water heater and after one year the price for the buyout is less than $3500? (I asked the builder and she said no, but was not very convincing)
-Is there any option to buy the house and the first day/week/month to cancel the agreement with Reliance and buy my own water heater? (I didn't ask the builder for this)
-Any other options?
The first day you have control of the house, drain the water heater and take it back to Reliance, give them the middle finger and walk away. Either that or talk to your lawyer.
Newbie
Jan 2, 2017
20 posts
12 upvotes
Ottawa
pootza wrote: The first day you have control of the house, drain the water heater and take it back to Reliance, give them the middle finger and walk away. Either that or talk to your lawyer.
I can do that, but only if it's legal. I read in a Reddit post that you cannot cancel it, there is no option for that.
Deal Fanatic
Dec 19, 2009
6197 posts
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astro313 wrote: I can do that, but only if it's legal. I read in a Reddit post that you cannot cancel it, there is no option for that.
That's why I mentioned ... talk to your lawyer!
Deal Guru
Jan 25, 2007
12695 posts
7861 upvotes
Paris
astro313 wrote: I can do that, but only if it's legal. I read in a Reddit post that you cannot cancel it, there is no option for that.
I believe close to zero of reddit.
Deal Expert
User avatar
Oct 6, 2010
15881 posts
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Toronto
bpcrally wrote: Thanks for your feedback. My wife and I discussed it and I think we've decided to simply buy a new water heater. I'm going to call around over the next few days and get some estimates.
I was thinking of buying ours out, then we're in for another ~$200 for buying the unit (which seems to be acting funny). Currently our basement is finished and in the we're in the process of finishing it. So rather than risk damage or having to haul water heaters through our new finished basement we'd just rather get it over with. Plus then piece of mind too, I don't want to be without hot water.

Any current water heater deals I should be looking at? Current is a powervented 50Gal. From this thread it looks like Lowes is popular, I'll give them a call.
On sale now:
http://forums.redflagdeals.com/lowes-gs ... 0-2073287/

http://www.anrdoezrs.net/click-749547-1 ... &sid=rfdcb
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Member
Sep 1, 2015
217 posts
159 upvotes
Niagara Falls, ON
thanks for this great thread, I'm about to own my first detached home will stay away from these rentals as far as I can
Deal Addict
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Jan 2, 2012
4682 posts
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KINGSTON,ON
finnoob wrote: thanks for this great thread, I'm about to own my first detached home will stay away from these rentals as far as I can
Knowledge is power, my friend.

Best of luck with new home ownership.
Sr. Member
Jan 10, 2005
530 posts
254 upvotes
Cruzzco wrote: Mangler... You are very welcome... I`ll give you a tip for checking the anode without actually removing the rod itself..
If you are comfortable with tinkering with tools and such... 1st... Turn off water that feeds the tank.. 2nd... Drain a fair amount of water from the top of the tank to just below the high pressure valve... You might have to open a hot water tap at a sink to aid in water flow for draining... Then close the water heater drain tap... 3rd.. Use a fairly large pipe wrench to remove high pressure valve from tank... Remember brass is soft metal... so go slow but hard... No hammering on wrench...
Insulate the jaws to keep from damaging valve... 4th... Use small flashlight and look inside and find your anode rod... Look to see what shape your anode is... If still fairly thick with lots of material... Just reinstall the high pressure valve... If not ..replace anode... When replacing high pressure valve and/or anode... Use fresh plumbers tape on threads of each... Then close off tank drain valve and refill tank... Bleed the air completely out of hot water side pipes. Watching the "still opened" hot water tap... Once you see solid water flow from tap... Turn off tap... You are done... Hope this helps.... Cruzzco
Thanks for that tip. Must say I did not think of that. Mostly because I "need" the large impact socket set ;)

Kidding aside, I expect to see the worst corrosion on the bottom end of the anode rod, if corrosion theory holds true. Even GSW tells you to replace the rod if you see more than 4 inches of exposed steel wire, and they provide a picture! in my manual, with the lower part of the rod showing the bare wire...
Deal Addict
May 5, 2007
1212 posts
581 upvotes
North York
I just move into a new detached home built in the 1950's. I called Enercare and turns out the water tank is out of life. They are offering the folowing:

1) New 50 G tank rental for $21 (including HST)
2) New 60 G tank rental for $23 (including HST)
3) They take it away for free and I buy a new one...

Since I have the opportunity to just install a new one, is it really worth the upfront cost to buy and new one vs renting ?
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Jun 25, 2004
4249 posts
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Pickering, ON
afshaikh wrote: I just move into a new detached home built in the 1950's. I called Enercare and turns out the water tank is out of life. They are offering the folowing:

1) New 50 G tank rental for $21 (including HST)
2) New 60 G tank rental for $23 (including HST)
3) They take it away for free and I buy a new one...

Since I have the opportunity to just install a new one, is it really worth the upfront cost to buy and new one vs renting ?
Given that hot water tanks can easily last 15 years, yes. Just do the math.
Deal Expert
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Oct 6, 2010
15881 posts
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Toronto
afshaikh wrote: I just move into a new detached home built in the 1950's. I called Enercare and turns out the water tank is out of life. They are offering the folowing:

1) New 50 G tank rental for $21 (including HST)
2) New 60 G tank rental for $23 (including HST)
3) They take it away for free and I buy a new one...

Since I have the opportunity to just install a new one, is it really worth the upfront cost to buy and new one vs renting ?
Read the thread. There's valid arguments for renting and owning.
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Deal Guru
Jan 25, 2007
12695 posts
7861 upvotes
Paris
koffey wrote: Read the thread. There's valid arguments for renting and owning.
There are very very situtational and thin arguments for renting, and 99% of the comments are for owning.

Which rental place do you work for/own/have a financial stake in?

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