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Pros & Cons of Owning versus Renting a Water Heater

When making a significant purchase the decision to rent or to own can be an easy one. Own or rent your house? If you live in Canada, most people would say it’s better to own. How about a car? Again, many would say owning is the better option, unless, of course, you use your vehicle for work. You may want to lease it then.

In Ontario, most of us rent our water heaters, paying in the neighbourhood of $15 to $30 per month. According to Rob Engen of the Toronto Star, most Ontarians rent their water heaters, while most Albertans buy theirs. Why? It’s force of habit.

The top argument for buying your own water heater is that over time you end up paying less than if you rent yours indefinitely. Let’s say you spend $1600 to buy and install your own water heater. The average lifespan is about 15 years, so providing nothing goes wrong with the water heater, you are paying $8.88 per month to own that appliance.

According to Direct Energy, a water heater requires servicing every five years.  And parts and labour can escalate, costing several hundred dollars. But know what repairs and breakdowns to water heaters aren’t all that commonplace.

Even if your water heater leaks and creates damage to your home, rest assured that your house insurance policy will cover the repairs.

According to Hoerner Heating & Plumbing, the beauty of owning your own heater means you can make the switch to a tankless water heater, which thanks to its on-demand system, will save you money in energy costs. At $4000 to $45000, they are at least double the cost of conventional tanks, yet they are more efficient as they provide households with an infinite supply of hot water.

The other benefit is that a tankless heater has about double the lifespan of a conventional one. Finally, a tankless system means more space in your home as these heaters are tiny compared to the tank size of a standard hot water heater.

Companies that are in the business of renting water heaters naturally offer numerous arguments in their favour. They say the advantages range from a rental fee that is affordable, same-day service, no charge for parts and labour and peace of mind.

What you decide on will depend also on how long you plan to live in your home. If it’s only for a few years, renting your heater might be a better choice. If you intend to stay longer, you can finance the appliance so your payments are the same as a rental fee.  Either way, be sure to take the time to read rental plans and compare contracts. If you’re thinking of buying, talk to an experience plumber.

Sources: www.torontostar.com, www.hoerner.ca, www.yellowpages.ca

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Toronto Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.