Home & Garden

The Great Water Heater Rental Scam

Deal Addict
User avatar
Jan 2, 2012
4682 posts
3973 upvotes
KINGSTON,ON
nesburf wrote: Thanks, Have emailed my lawyer on how to proceed
Please post what your lawyer's response is. It would be helpful to others who are in a similar situation.
Cheers.
Deal Addict
Dec 19, 2009
1955 posts
2985 upvotes
Ottawa
nesburf wrote: I just bought a house that closes May 15 and currently has a rental water heater through Enercare. I believe its a standard 50 gallon vented tank. House was built in 2010.

What is my best course of action to get out of the contract with minimal fees and purchase a new tank and have it installed without any disruption so I have hot water from day one?
I'd like an answer to this as well.

I'm already living in my home but want out of our HWT rental contract (w/ Reliance) but want to minimize the disruption with access to hot water. Seems like you really have to be on the ball with timing for all of this.

Also, how much are people paying to have a new HWT installed? Our current HWT is being vented through the chimney (which apparently is an older practice) so we would need a hole drilled into the side of our house to vent out that way...which I assume will add to the complexity of the install. Just trying to get an idea for what this is all going to cost us.

Thanks!
Jr. Member
Feb 26, 2012
173 posts
17 upvotes
mikek33 wrote: I'd like an answer to this as well.

I'm already living in my home but want out of our HWT rental contract (w/ Reliance) but want to minimize the disruption with access to hot water. Seems like you really have to be on the ball with timing for all of this.

Also, how much are people paying to have a new HWT installed? Our current HWT is being vented through the chimney (which apparently is an older practice) so we would need a hole drilled into the side of our house to vent out that way...which I assume will add to the complexity of the install. Just trying to get an idea for what this is all going to cost us.

Thanks!
So I spoke with my lawyer and he basically said because I signed the purchase agreement knowing that the Water Heater was a rental (it was written in it), I automatically assume the contract. I would have had to make a deal with the previous owners to get them to terminate the contract, but they would have no incentive to do that and would likely want to be compensated for it.

Basically my only options now are to fight with the rental company and try to not have to pay the full buyout fee.
Deal Addict
Dec 19, 2009
1955 posts
2985 upvotes
Ottawa
nesburf wrote: So I spoke with my lawyer and he basically said because I signed the purchase agreement knowing that the Water Heater was a rental (it was written in it), I automatically assume the contract. I would have had to make a deal with the previous owners to get them to terminate the contract, but they would have no incentive to do that and would likely want to be compensated for it.

Basically my only options now are to fight with the rental company and try to not have to pay the full buyout fee.
I read somewhere in all of these threads on HWTs that if you don’t pay the first bill you aren’t opting into the contract. I don’t know he legal validity to those statements but may be worth investigating.
Newbie
Oct 28, 2011
67 posts
48 upvotes
Aurora, Ontario
Enercare contract 50 gal power vent HWT. I moved into a house that has 7 yr old with $33/month charge. I called to find out the contract duration, and the rep said the contract terminated when the tank is unrepairable. So I asked whether can decrease the monthly rental charge as it is 7 yr old. The rep's supervisor passed the message that they can't reduce it, but can provides me other rental equipments and gives me discount on those. Lastly, the buyout price is the only option and cost ~ $800, which is about the buyout schedule price of a 6 yr old, so I asked why. The rep replied that they calculate up to the exact date of the tank, which installed in Oct.

This is the first time I heard that a contract doesn't has fix duration. The options is only when the tank is broken and totally unrepairable. I failed a complaint with Competition Bureau (http://www.competitionbureau.gc.ca/eic/ ... 89T-7TDNA5) with file # R685921
Deal Addict
Sep 22, 2011
1906 posts
707 upvotes
GTA
Crooks (Reliance) asking me for $400 early cancellation + $75 return fee
Deal Addict
Apr 18, 2013
4313 posts
2738 upvotes
Canada
crystallight wrote: She also teaches business and didn't know about water heater contracts?
How do you know she teaches business?
Deal Expert
Mar 22, 2004
16012 posts
7474 upvotes
RFD
justanu wrote: Turns out that Better Business Bureau is as bad as Home Reliance Comfort - a bunch of crooks.
I have asked many times BBB to post my complaint and my review online, but the denied every time. BBB is hiding complaints and reviews on purpose.Even online and wikipedia states BBB is a scam too... Is there any justice in this story. Is there a class action suit against Reliance?
I have dealt with BBB a few years ago, they are indeed useless and a joke mediator between two parties. If no one is able to come to a solution they just close the case. BBB has been linked to corruption throughout the years if you Google it, basically the companies will pay them for a better rating.
Member
User avatar
Jan 13, 2017
477 posts
314 upvotes
Toronto
Guys, any advice how to get out of my rental water heater with Reliance? I never signed any contracts with them when I purchased my 2 month old (resale) home... apparently the original owners signed paper work when they took possession of the new home, which they sold the home to me 2 months later, but they didn't have any paperwork from reliance.... Not sure how to get out of this one without paying a penalty?
Deal Addict
Apr 24, 2007
2712 posts
1058 upvotes
When you bought your home, did you tell the seller you didn't want it or did you agree to assume the rental as would be stated in your purchase agreement?
Member
User avatar
Jan 13, 2017
477 posts
314 upvotes
Toronto
jrees wrote: When you bought your home, did you tell the seller you didn't want it or did you agree to assume the rental as would be stated in your purchase agreement?
No It didn't even come up to be honest. I didn't think of it when we were negotiating.
Deal Addict
Apr 24, 2007
2712 posts
1058 upvotes
rendered22 wrote: No It didn't even come up to be honest. I didn't think of it when we were negotiating.
That's what the seller was counting on, and it's probably included in the purchase agreement.
Deal Fanatic
Feb 4, 2010
7156 posts
7138 upvotes
rendered22 wrote: No It didn't even come up to be honest. I didn't think of it when we were negotiating.
As already noted, it's probably in the purchase agreement, which your lawyer (and RE agent if you used one) should have gone over with you. All you can do is find out how long the contract is, how old the tank is and how much the buy out it is ....they have a tendency to over-inflate the price, and charge all sorts of fees.
Deal Addict
User avatar
Dec 18, 2004
3352 posts
245 upvotes
Mississauga
I've got a Rheem Fury D RP50-45FV1 which I'm paying Enbridge (at least on my invoice) $19.20/month for. I'm pretty sure it's a direct vent.

The lease was entered into 2006 so I think it's ended.

What would you guys suggest? It's been perfectly fine except in the last six months, we've run out of hot water about a dozen times. We're a family of five with three kids who are under 10 years old. I just don't want to run out of hot water!
Deal Addict
Jan 21, 2009
2507 posts
551 upvotes
TO
I’m getting quotes for a hot water tank (power vent) for $2300 including installation. Anyone else getting quoted for less? This is a 50 gallon tank but I think this is outrageous!
Deal Fanatic
Feb 4, 2010
7156 posts
7138 upvotes
Ohboiya wrote: I've got a Rheem Fury D RP50-45FV1 which I'm paying Enbridge (at least on my invoice) $19.20/month for. I'm pretty sure it's a direct vent.

The lease was entered into 2006 so I think it's ended.

What would you guys suggest? It's been perfectly fine except in the last six months, we've run out of hot water about a dozen times. We're a family of five with three kids who are under 10 years old. I just don't want to run out of hot water!
My 2 cents - since you're renting and not bound to a contract, I would find a new water heater that meets your needs, buy it outright and have someone install it for you - they may even return the old one to Reliance. That's pretty much what I did. I bought the WH from HVAC company who installed - they also updated the piping and return the old one to reliance "free of charge" (thought I'm sure they factored into the price). I would suggest not buying a cheaper one from a big box stores, they SEEM to have more issues.
Deal Fanatic
Feb 4, 2010
7156 posts
7138 upvotes
tcharged wrote: I’m getting quotes for a hot water tank (power vent) for $2300 including installation. Anyone else getting quoted for less? This is a 50 gallon tank but I think this is outrageous!
And why do you think it's outrageous? Not sure how you can expect compare prices with others when there are other determining factors to consider.

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