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Hot water tank rental

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  • Jun 25th, 2019 2:01 pm
[OP]
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Jan 16, 2019
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Toronto

Hot water tank rental

Hi all, I'm buying a new construction. It's signed but not closed yet.

I'm surprised to know that hot water tank is rental. I was told it's common and so I signed.

They didn't share any details about company or contract. I did research and information I find is alarming. Making me nervous.
Screenshot_20190622-174244_Drive.jpg
Wondering what are options. What will be the typical installation cost and plus equipment? May be I should purchase outright?

Model they installing is 6g-5076nv-c02 120. Envirosense® Power Vent Water Heater

https://www.gsw-wh.com/en/products/envirosense-pv
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Oct 15, 2007
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everydaydealer wrote: Hi all, I'm buying a new construction. It's signed but not closed yet.

I'm surprised to know that hot water tank is rental. I was told it's common and so I signed.

They didn't share any details about company or contract. I did research and information I find is alarming. Making me nervous. Screenshot_20190622-174244_Drive.jpg

Wondering what are options. What will be the typical installation cost and plus equipment? May be I should purchase outright?

Model they installing is 6g-5076nv-c02 120. Envirosense® Power Vent Water Heater

https://www.gsw-wh.com/en/products/envirosense-pv
There are no options you have no choice but to buy out from them.
This is very common for new builds.
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
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Feb 11, 2007
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everydaydealer wrote: Hi all, I'm buying a new construction. It's signed but not closed yet.

I'm surprised to know that hot water tank is rental. I was told it's common and so I signed.

They didn't share any details about company or contract. I did research and information I find is alarming. Making me nervous. Screenshot_20190622-174244_Drive.jpg

Wondering what are options. What will be the typical installation cost and plus equipment? May be I should purchase outright?

Model they installing is 6g-5076nv-c02 120. Envirosense® Power Vent Water Heater

https://www.gsw-wh.com/en/products/envirosense-pv
Your only option is to not buy from a builder who forces you into a terrible rental agreement.
If the women don't find you handsome, they should at least find you handy.
Deal Addict
Jan 28, 2007
2312 posts
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SW Ontario
BTW,

That WH is $3200+tax on it's own before install ... so even if there was a buyout option, it would be expensive.
I'd rather be outdoors camping, kayaking, and mountain biking ...
[OP]
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Jan 16, 2019
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Toronto
engineered wrote: Your only option is to not buy from a builder who forces you into a terrible rental agreement.
Jojo_Madman wrote: BTW,

That WH is $3200+tax on it's own before install ... so even if there was a buyout option, it would be expensive.
I didn't know that builders will be so cruel. This is Brookfield residential. I heard few saying good things about them.

I contacted the customer service to give an exception. Waiting for response. But so far I didn't get any contract details. Can I say I won't sign the rental contract. Will they be cruel to stop the deal?

Can I my lawyer help.
[OP]
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Jan 16, 2019
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Toronto
Jojo_Madman wrote: BTW,

That WH is $3200+tax on it's own before install ... so even if there was a buyout option, it would be expensive.
Where did you get this price. I searched everywhere for this model price and couldn't get. Looks like most of the new construction installs this specific model.
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Oct 15, 2007
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everydaydealer wrote: I didn't know that builders will be so cruel. This is Brookfield residential. I heard few saying good things about them.

I contacted the customer service to give an exception. Waiting for response. But so far I didn't get any contract details. Can I say I won't sign the rental contract. Will they be cruel to stop the deal?

Can I my lawyer help.
This is common for new construction. You have no choice as the builders have agreements with rental companies. Well you do have a choice, you can not buy the house altogether
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
[OP]
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Jan 16, 2019
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Toronto
Red_Army wrote: This is common for new construction. You have no choice as the builders have agreements with rental companies. Well you do have a choice, you can not buy the house altogether
No believe me. It's firm deal. I might loose deposit or fight to get the deposit back.

Can I fight to not get in to agreement. No one succeeded?
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everydaydealer wrote: No believe me. It's firm deal. I might loose deposit or fight to get the deposit back.

Can I fight to not get in to agreement. No one succeeded?
You are not the first. There are many articles and threads about this. You’re SOL.
Let this be a lesson to read contracts before you sign
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
[OP]
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Jan 16, 2019
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Thanks. Lesson learned. I read the purchase agreement but sales person told its common in Ontario or Canada. I never thought it's a bigger scam.

I'm going to try my luck with builder to get exception and not sign the contract for water tank rental.
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Oct 15, 2007
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everydaydealer wrote: Thanks. Lesson learned. I read the purchase agreement but sales person told its common in Ontario or Canada. I never thought it's a bigger scam.

I'm going to try my luck with builder to get exception and not sign the contract for water tank rental.
You’ve already signed it by signing the purchase agreement . There will be no separate contract for the rental


The agent told you it’s common because it is. With many new construction builders you have no choice but to accept the rental agreement (without buyout) or they won’t sell you the property
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
Deal Addict
Jan 28, 2007
2312 posts
1661 upvotes
SW Ontario
everydaydealer wrote: Where did you get this price. I searched everywhere for this model price and couldn't get. Looks like most of the new construction installs this specific model.
In the industry and that's the price at one of the wholesalers for walk ins ... and I have two of those in my rental properties
I'd rather be outdoors camping, kayaking, and mountain biking ...
[OP]
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Jan 16, 2019
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Toronto
Jojo_Madman wrote: In the industry and that's the price at one of the wholesalers for walk ins ... and I have two of those in my rental properties
Thank you. What might be the best buyout price from builder if I'm left with no choice. I'm still going to fight till death kind.

Unit plus installation.
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Oct 15, 2007
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everydaydealer wrote: Thank you. What might be the best buyout price from builder if I'm left with no choice. I'm still going to fight till death kind.

Unit plus installation.
You’re probably looking at a few thousand on top of what the tank is worth

Good luck, you’ll be fighting till you die
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
Deal Expert
User avatar
Feb 11, 2007
18698 posts
21372 upvotes
GTA
Jojo_Madman wrote: In the industry and that's the price at one of the wholesalers for walk ins ... and I have two of those in my rental properties
Is there any payback for the high price of those units? Or do you have them on the rentals for high capacity/recharge?
If the women don't find you handsome, they should at least find you handy.
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Jan 28, 2007
2312 posts
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SW Ontario
engineered wrote: Is there any payback for the high price of those units? Or do you have them on the rentals for high capacity/recharge?
Given that my tenants pay for NG, the only payback is the savings they reap from use, as the rental rate is almost double that of a standard Power-vent unit. They are an EF of 0.96 due to being condensing, versus that of a Power-Vent EF of 0.81

It's not by my choice but our lovely Ontario Energy Code requirements on new buildings ... and the savings IMHO don't make the costs worth while.

I'm told that it's illegal to remove them and replace them with a lower EF unit, such as a Power-Vent ... I'll let you know in 2 years time when I am eligible to turf the rental agreement in place from the builder.
I'd rather be outdoors camping, kayaking, and mountain biking ...
Deal Addict
Jan 28, 2007
2312 posts
1661 upvotes
SW Ontario
everydaydealer wrote: Thank you. What might be the best buyout price from builder if I'm left with no choice. I'm still going to fight till death kind.

Unit plus installation.
My best guess is your looking at a minimum of $6000 to get out if their isnt a exit provision in the agreement. It's not as simple as unit plus installation, and they generally want to not only recoup any monies paid, such as incentives to the builder, but also part of the lost revenue stream.
I'd rather be outdoors camping, kayaking, and mountain biking ...
[OP]
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Jan 16, 2019
39 posts
3 upvotes
Toronto
Jojo_Madman wrote: My best guess is your looking at a minimum of $6000 to get out if their isnt a exit provision in the agreement. It's not as simple as unit plus installation, and they generally want to not only recoup any monies paid, such as incentives to the builder, but also part of the lost revenue stream.
Feeling helpless. Will post update after they share the contract details.
[OP]
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Jan 16, 2019
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Red_Army wrote: You’re probably looking at a few thousand on top of what the tank is worth

Good luck, you’ll be fighting till you die
Your words not encouraging at all. Guess you seen enoughSmiling Face With Smiling Eyes
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Feb 11, 2007
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GTA
Jojo_Madman wrote: Given that my tenants pay for NG, the only payback is the savings they reap from use, as the rental rate is almost double that of a standard Power-vent unit. They are an EF of 0.96 due to being condensing, versus that of a Power-Vent EF of 0.81

It's not by my choice but our lovely Ontario Energy Code requirements on new buildings ... and the savings IMHO don't make the costs worth while.

I'm told that it's illegal to remove them and replace them with a lower EF unit, such as a Power-Vent ... I'll let you know in 2 years time when I am eligible to turf the rental agreement in place from the builder.
OK, I was wondering why anyone would buy such a unit, especially for a rental property.
If the women don't find you handsome, they should at least find you handy.

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