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Should I buyout the rented water heater?

  • Last Updated:
  • Apr 17th, 2020 12:28 pm
[OP]
Newbie
Nov 22, 2016
54 posts
31 upvotes

Should I buyout the rented water heater?

Purchased a new home and the water heater is rented from Reliance.
Now I'm considering a few options: rent, buyout or replace new one
It is a 6 year old 40 gallon gas water heater and they told me buyout price is 1078+hst=1218.14
Cost to have it removed is 165+hst=186.45
Cost of rental per month is approx $33
Buyout price is around 36 month of rental cost.
It does feel a bit expensive to buy a 6 year old water heater for 1218.14 but since there is extra 186.45 cost to have it removed should I just buy it out in this case?
Or could I be better off getting a new one and pay them to have it removed?
21 replies
Member
Sep 15, 2017
301 posts
262 upvotes
Saskatoon
Aren't they like ~1000$ new installed?
Deal Addict
Aug 16, 2009
1209 posts
361 upvotes
Toronto
I would buy it out. Water heaters are known to have quite a long life if you do some basic maintenance. Assume the heater lasts you 10 years, your rental for the next 4 years is almost $1800. A brand new water heater is probably not that expensive. I bought my heater out immediately for my own place. I think the break even point was 3-4 years and I'm already past that mark. However if you do keep on renting, then your service calls (whenever that is) should be covered and not out of pocket.
Deal Addict
Nov 17, 2012
2637 posts
1624 upvotes
Toronto
Get rid of it now. $33 is way too much for a rental. Pay the $186 and get out of it.

Then get yourself a mid-efficiency atmospheric vented 40 gallon tank installed. It will run during a power outage, requires minimal maintenance etc.

Check your home insurance policy - after 12 years of age they likely don't cover any damage from the water heater.

Full disclosure - I rent. I pay $17 a month for my simple 40 gallon tank. But if I was paying 2x the rate, I'd be ditching it.
Sr. Member
Feb 11, 2018
867 posts
755 upvotes
Buy it!!! Your $33/month will certainly keep on increasing. Install a Leakbreaker and use the tank as long as it will work. Renting seldom pays off for the homeowners.

After buying the tank you should check its condition. It most likely needs a new anode rod. Doing regular maintenance wouldn't hurt either, unless it is already quite rusted inside.
The spiritual gave birth to the physical.
Deal Addict
Mar 3, 2018
1439 posts
1375 upvotes
GTA
Buy it out and keep it for now. After three years you will have recovered your outlay and never have to deal with Reliance again. Bought mine out after 9 years and just replaced it after 17 years. My thinking is the rental units are better built to reduce maintenance calls.
Deal Expert
Aug 2, 2004
31864 posts
5907 upvotes
East Gwillimbury
If you plan to live in this house for more than 5 years, I would listen to @torontotim and return it. Get a new one

Check with your insurance. Some companies will not cover if the tank is over 10 years old. Effectively, you only have 4 - 6 years life before you need to get a new one.

Spending 186$ to reset the clock is better deal
Sr. Member
User avatar
Nov 1, 2001
758 posts
245 upvotes
Toronto
If you can pay to have them take it back, do it. I didn't have that option and I bought out my 10 yr old heater and was best decision ever.
****!!! Enercare
Deal Fanatic
May 1, 2012
9243 posts
7928 upvotes
Markham
DO NOT BUY IT OUT

Pay to have it removed and install a new one. A new one will come with its own labour and parts warranty, and it should last you > 10 years.
Deal Addict
Mar 3, 2018
1439 posts
1375 upvotes
GTA
Anikiri wrote: DO NOT BUY IT OUT

Pay to have it removed and install a new one. A new one will come with its own labour and parts warranty, and it should last you > 10 years.
I think he has to pay $1218 buyout + $186 removal + the cost of a new water heater $1000?. Wouldn't it makes sense then just to keep the original water heater he has to buy out anyways and use it for a few more years. Save the cost of a new one for now.
Deal Fanatic
May 1, 2012
9243 posts
7928 upvotes
Markham
DaveTheDude wrote: I think he has to pay $1218 buyout + $186 removal + the cost of a new water heater $1000?. Wouldn't it makes sense then just to keep the original water heater he has to buy out anyways and use it for a few more years. Save the cost of a new one for now.
My understanding was that he could have it removed or bought out. Why would you remove it if you already bought it out?

But if he cannot just remove it then yes you’re right best to just buy it and use it to the ground.
Deal Fanatic
Jul 3, 2011
5708 posts
2887 upvotes
Thornhill
When does the lease agreement end?

What are the stated terms of the tank's value at end of lease?
[OP]
Newbie
Nov 22, 2016
54 posts
31 upvotes
So i can either buy it out for 1218 or remove it for 186 and buy a new one myself.

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