We often have several questions when it comes to water heaters. Which is better buying VS renting? This weeks blog posting we had a guest blogger, Chris Bruer from Priority Mechanical Services Ltd. He came up with great valid tips and points to help you decide what the best decision is for you.
Water Heaters – Rent vs Own (the pros and cons)
When it comes to water heaters, home owners often ask us the question, “which is better, rent or own?”. This question is tough to answer definitively as there are valid arguments on both sides. However, as we install and service both, we can outline the pros and cons to help prospective buyers make their decision.
First, let’s look at renting.
The main reason most people go with a rental unit is to avoid paying the entire cost of the water heater and install up front. Instead, the cost gets spread out over years. The second reason people rent is because if there are issues with the unit, in most cases there are no charges for service calls.
However, many home owners have had very bad experiences with other water heater rental companies for some of the following reasons. Firstly, and most commonly, many people do not like being locked in to the “lifetime” contract that requires monthly payments that increase 6-8%/year. These contracts can be difficult to get out of, and if you do, the price is often so high that it makes more sense to stay with the rental. Although recent actions by Canada’s Competition Bureau may have changed some of these companies’ practices, their history of making it difficult to exit contracts has included:
- a requirement to call to obtain authorization to return a rented water heater;
- aggressive retention tactics during these calls;
- restrictions on when and where water heaters can be returned; and
- unwarranted fees and charges.
Add to this that purchasing a home with a rented water heater assumes the new home owner has agreed to the contract upon payment of the first bill, and, overseas call centres, and you have some unhappy customers.
On average, the cost of renting a water heater over its’ lifetime is 33% more than owning.
Now let’s look at owning.
The cost of purchasing and installing a new water heater with a licensed professional, ranges from approximately $1,000 (electric) through $2,500 (high-efficiency, power-vented gas), to $3,500 (high-efficiency tankless). The home owner has the option to shop around for the lowest unit and install price.
In many cases, the break-even point, in comparison with rental units, is around 6 years. Assuming there are no issues during this time, the purchase and install cost would equal what would have been paid for a rental unit. Since the average lifespan of a water heater is around 10 years (though they can sometimes last as long as 20), at this point home owners could consider themselves “home free”.
The down side, of course, is that on top of the unit and install cost, should anything go wrong with the water heater, the home owner is now responsible for paying to fix it. In general, most water heaters have a six-year limited warranty that covers parts. This does not, however, cover the $100-$300 (min.) labour that the average service call costs.
The bottom line is that there will always be people who prefer one method over the other. Either way, be sure you have done your due diligence and researched your options fully. Whichever way you decide to go, Rent, Own, Tank, Tankless, Gas, Electric, you can be sure that Priority Mechanical Services will be there to help you.
Water Heaters – Rent vs Own (Pros/Cons)
When it comes to water heaters, home owners often ask us the question, “which is better, rent or own?”. This question is tough to answer definitively as there are valid arguments on both sides. However, as we install and service both, we can outline the pros and cons to help prospective buyers make their decision.
Renting
Pros
- No up-front costs (Low Monthly charges)
- Rental company responsible to cover most maintenance and repair costs
Cons
- Locked in to contract
- Monthly payments increase yearly
- Difficult to break out of contract
- 33% more than owning over water heater life
Owning
Pros
- No contract
- No monthly charges
- Greater choice of units and service providers
- 33% less than renting over water heater life
Cons
- High up-front cost for unit and install
- Owner responsible to cover all maintenance and repair costs
The bottom line is that there will always be people who prefer one method over the other. Either way, be sure you have done your due diligence and researched your options fully. Whichever way you decide to go, Rent, Own, Tank, Tankless, Gas, Electric, you can be sure that Priority Mechanical Services will be there to help you.
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