Home & Garden

The Great Water Heater Rental Scam

  • Last Updated:
  • Aug 17th, 2017 7:43 pm
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Oct 20, 2004
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I am buying a home in Windsor (not sure whether the water is hard) and the current owners are rented a Power vented 60 gallon water tank from Reliance for $30 (+taxes) per month since Mar 2011. My options other than continuing the rental includes buyout for $870 + taxes, or get it removed for $205 after the contract ends next year. Does it seem fair to buy out a 6 year Power vented 60 gallon water tank for $870?
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Sr. Member
Apr 26, 2003
742 posts
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Hold out and remove it and buy a new one. Not worth paying that kind of rental money on a 6-7 year old tank.
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Jan 25, 2007
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Paris
dinesh_zee wrote:
Jun 27th, 2017 8:43 am
I am buying a home in Windsor (not sure whether the water is hard) and the current owners are rented a Power vented 60 gallon water tank from Reliance for $30 (+taxes) per month since Mar 2011. My options other than continuing the rental includes buyout for $870 + taxes, or get it removed for $205 after the contract ends next year. Does it seem fair to buy out a 6 year Power vented 60 gallon water tank for $870?
When is "next year"? If it's 18 months at 30 bucks +$205 =$750 that would be cheaper than the $870 but then you would own the tank for a measly $120 which should last you 2-3 years more. To me its a crap shoot... Maybe the tank buyout will be less after the contract expires?

60 gallon tanks are usually a little more than a big box standard 50 gallon.
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.
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Buying it out right now makes sense economically but is it worth the gamble that the 6 yr old tank will last another 3 years?
Jerico wrote:
Jun 27th, 2017 4:13 pm
When is "next year"? If it's 18 months at 30 bucks +$205 =$750 that would be cheaper than the $870 but then you would own the tank for a measly $120 which should last you 2-3 years more. To me its a crap shoot... Maybe the tank buyout will be less after the contract expires?

60 gallon tanks are usually a little more than a big box standard 50 gallon.
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Sr. Member
Aug 18, 2009
523 posts
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Toronto
I recently moved into a home (resale) but have not yet contacted the hot water tank rental company. What would happen if I never contacted them to transfer the rental? I've already received my Enbridge bill but there's no mention of a water tank rental fee.
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Jan 25, 2007
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Paris
dinesh_zee wrote:
Jun 28th, 2017 12:28 pm
Buying it out right now makes sense economically but is it worth the gamble that the 6 yr old tank will last another 3 years?
What's the exact break even though? If he buys it, how much longer MUST it last to not be out of pocket? That's all I did on my current one... payback is 4 years so as long as it lasts that long I am ahead.

If he buys it out and it lasts him a month longer than if he paid to rent it saving $30, it was worth it
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.
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Jerico wrote:
Jun 28th, 2017 2:35 pm
What's the exact break even though? If he buys it, how much longer MUST it last to not be out of pocket? That's all I did on my current one... payback is 4 years so as long as it lasts that long I am ahead.

If he buys it out and it lasts him a month longer than if he paid to rent it saving $30, it was worth it
After buying out the 6.25yr old power vent tank, it needs to last another 2.5yrs to break even...

870 buyout / 30 rent = 29 months ownership to break even...
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Jan 25, 2007
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Paris
dinesh_zee wrote:
Jun 28th, 2017 4:26 pm
After buying out the 6.25yr old power vent tank, it needs to last another 2.5yrs to break even...

870 buyout / 30 rent = 29 months ownership to break even...

Not quite, as he is already locked in until "next year" how ever many months that is. Depends on the buyout after contract expires if it will go down or not.

Plus there is a $205 removal fee so it's 870-205/30=22.5 months and most likely it will last.

Edit: I just realized it was you that asked so how many months are left in contract?
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.
Newbie
Jan 13, 2009
36 posts
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I bought a house and I didn't notice that it had a water heater rented from Reliance. only realized that I will be scammed after I took possession. for some idiotic reason the seller just put a new heater less than a month ago. i already have a water heater that I bought on kijiji, and I have no interest in renting one. it's like a fridge or a stove, why would you ever want to rent a fridge?? so my handyman will take it out for me, and I can bring them the damn thing if they refuse to pick it up at their expense...but they want me to pay 200 dollars cancellation fee (!!!) this is a total scam and I never saw these terms and conditions (but apparently among a billion papers I had to sign when I bought the house there was something about rental contracts), and this is a complete rip off. so what happens if I simply don't pay the 200 dollars? are they going to send collectors after me? can I dispute this charge in court or somewhere else? is my credit score going to be ruined?
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Feb 4, 2010
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elfion wrote:
Jun 28th, 2017 7:30 pm
I bought a house and I didn't notice that it had a water heater rented from Reliance. only realized that I will be scammed after I took possession. for some idiotic reason the seller just put a new heater less than a month ago. i already have a water heater that I bought on kijiji, and I have no interest in renting one. it's like a fridge or a stove, why would you ever want to rent a fridge?? so my handyman will take it out for me, and I can bring them the damn thing if they refuse to pick it up at their expense...but they want me to pay 200 dollars cancellation fee (!!!) this is a total scam and I never saw these terms and conditions (but apparently among a billion papers I had to sign when I bought the house there was something about rental contracts), and this is a complete rip off. so what happens if I simply don't pay the 200 dollars? are they going to send collectors after me? can I dispute this charge in court or somewhere else? is my credit score going to be ruined?
They definitely will threaten you with going to the collection agency (speaking from experience). Whether they do or not for such a piddly amount, I'm not sure. For me, it was only $60 which I was able to get waived but it took months and talking to a lot of stupid people at Reliance. You can try that route if you don't mind the hassle and headache otherwise better just to pay the $200. And yes it will affect your credit score if it goes to collections...not worth it. BTW the rental should have been on the first document you sign with the house price and what's all included (e.g appliances, etc.) - I forget the name of the document.
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Jerico wrote:
Jun 28th, 2017 5:07 pm
Not quite, as he is already locked in until "next year" how ever many months that is. Depends on the buyout after contract expires if it will go down or not.

Plus there is a $205 removal fee so it's 870-205/30=22.5 months and most likely it will last.

Edit: I just realized it was you that asked so how many months are left in contract?
9 months left on current rental contract that I would take over...
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Newbie
May 1, 2012
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Markham
Hello
My water tank was rent by previous owner 6 years ago before I moved in from enercare. Days ago I called to have it downgrade from 60 Gallen to 50 or 40, this morning the tech came in and told me there was a contract for ten years, they can not have it replaced for free.
Is there any thing wrong? What should I do to now?


Thanks
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Oct 2, 2005
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Any opinions on this one: http://www.sears.ca/en/water-heaters/50 ... 568_I.html

Seems like a good price. Looking at replacing the heater in the attached images. I cant find any information on that model as i assume its something made up just for the rental company. Not sure if anyone knows if the sears on is roughly equivalent or better.

Thanks.
Images
  • waterheater2.JPG
  • waterheater1.JPG
Sr. Member
Oct 13, 2014
916 posts
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Somewhere, ON
Are you specifically asking about the Sears (Kenmore) or the rental (GSW). In both the makes are very clear and the information on the GSW is online and easily found as the model number is noted in your photos.
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Feb 9, 2006
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Brampton
RAINMAN0 wrote:
Jul 5th, 2017 9:57 am
Any opinions on this one: http://www.sears.ca/en/water-heaters/50 ... 568_I.html

Seems like a good price. Looking at replacing the heater in the attached images. I cant find any information on that model as i assume its something made up just for the rental company. Not sure if anyone knows if the sears on is roughly equivalent or better.

Thanks.
Honestly the Kenmore looks like a rebranded GSW. The specs even match the one sold at lowes.

However your old tank is a power vent. Then Kenmore is not. You need a powervent.

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