I’m not sure how the rental business evolved here. Other parts of the country seem to be less affected by this blatant money grab. One theory is, local utilities, in an attempt at conservation, (natural gas vs. electric), offered rental units to homeowners as a way to conserve, and offset the cost of a new install by offering a rental program. Many of them had a pay-to-own option. Another theory is that new home builders could drop their price slightly by including a rental w/h unit in their homes.
Then, at some point, a bean counter realised this was a huge profit centre. Thus the scam began.

Let’s do the numbers. Even a poorly maintained W/H will last 8-12 years. For example, a new power vent water heater costs about $900. The current rental rate from Reliance, one of the many companies offering rentals, is $25 per month, as of January 2012. Do the math. Where else, in this economy, can you double your investment in six years. 

Some background on my situation: We moved into our house 4 1/2 years ago, and, at the time, had a number of large expenses, and typically, didn’t want to shell out for a water heater. 
After reading about some companies allowing customers a buy out option, I contacted Reliance and was told that the buy out would be $800. I almost choked. “$800 for a six year old tank?” “Well”, the man said, “It’s a heavy duty tank, you know. We can’t just rent out ordinary tanks. These are special.” I asked if he thought I fell off a turnip truck the previous night, and told him I’d get back to him on the details in regards to the removal process. 
Weeks turned into months, and I ignored that bloody rental water heater, that money vacuum in my basement, as much as I could. A home mortgage is one thing, but getting it in the ear for a friggin’ home appliance was another. I’m not renting my stove, my dish washer, nor my fridge…Grrr…

Finally, it was Reliance’s rate increase, starting January 2012, that broke the camel’s back.

I found someone on Kijiji that was selling a used power vent tank, and I offered buddy $50 for it. When I got it home and started doing the ‘requisite check up’, I found that the anode was mostly gone, and the dip tube had rotted off and fallen into the tank. I managed to fish all the plastic tubing bits out, and replaced the leaking drain valve. I also cleaned out as much of the sediment as possible.

Today I pulled out the Reliance rental unit, and installed my refurb. After mucking with the vacuum switch tube, which had gotten knocked off in transit, it fired up no problem. I will now buy a new anode for it, now that I know that it’s working properly.

Now, I’m not suggesting that people currently renting a water heater go hunt down a used unit as I did, but simply GO BUY A NEW ONE, THEN LOOK AFTER IT. Change the anode as required, especially if you use a water softener. Don’t get shafted by these rental companies, and definitely DO NOT sign a long term rental contract.

I have talked to many people this past while, who have rental units. There seem to be many misconceptions about water heaters. For example:

i) They are VERY expensive to buy.
Uh.,.what? Most cost less than that plasma TV you recently purchased. And probably will last longer too, if you maintain it. Now, a new hot water heater isn’t nearly as sexy as a new 55″ TV, but I guarantee, after five days of abstinence from both, and a choice was offered between the two, priorities would become crystal clear…. I digress. 
ii) They are expensive to service, and the Rental Company pays for the service.
Again,..Uh, duh, what ? No, YOU are paying for the service. You just don’t want to acknowledge it. Think about it. Even if you hired a plumber annually for $80 to inspect the water heater you own, you’d still be coming out ahead.
iii) The Rental Company will insure against damages caused by their tank leaking.
Are you kidding?? They cover nothing aside from keeping the tank limping along. You had better make sure your insurance policy is updated and includes water damage. 

As a final note, my ‘Reliance Notice Of Rate Increase’ states some lovely double-speak gems such as: 

“Free replacement should it be un-repairable as a result of normal use”
Really? You mean it if it pisses water all over my possessions and causes thousands of dollars in damages because you don’t maintain your water heaters in any way, shape, or form, you are still willing to give me a new water heater? How charitable.

“Guaranteed service – our large network of qualified, licensed technicians provided gauranteed support.” 
Now that’s a doubly-duty gaurantee, if I ever read one. Whatever it means. 

“All repair, parts, and labour, as a result of normal use, are included through the life of the equipment”.
Once more, uh, duh… It’s a rental, NOT a lease. It’s their equipment. If you rent a house, do you need to pay to have it re-shingled?

As a final insult, the Reliance letter states that “1.2 million homeowners…trust us…and why we’ve saved our customers over $80 million on water heater repairs last year alone.” 

Holy Crap! $80 million dollars! It costs $80 million dollars to repair water heaters! 
I want to save $80 million dollars! I want to rent one now! I’m going to save enough for me, my wife, and my child’s retirement just by renting from your company!

An update:

I just called Reliance Home Comfort, the company which has been renting me the water heater. It turns out that they have a $40 contract cancellation fee, and want me pay and additional $65 to pick up their tank unless I drop it off at their depot. I got a bit angry, and told the CSR that they could pick it up, or i’d call a scrap guy to take it away. She said I’d be charged $730, the “buy out price” for the tank if I did that. I told her, “It’s a 2004 model, how in the hell is it worth that much? I can go buy a new one for $900″, to which she replied the same old “These are Special Heavy Duty models, build just for Reliance” 
Ya right. 
So now I need to somehow get that friggin’ tank back to them in my Ford Focus. I told the CSR that Reliance Home Comfort just bought $105 of serious bad publicity. 

This is just another reason to NEVER rent a water heater.

I’m so tired of lies and deception at the door it makes me ill. Do they think everyone is a fool? I feel so sorry for anyone who’s been conned into believing they have to change their heater or gas company or furnace not knowing that they’re just getting you to switch to their company so they can make a buck.

Tell the truth, say who you really are and why you’re really at the door. Man up. Have some integrity.

Live Clean Home Services is just another opportunist hoping to make a buck off anyone that’s unfortunate enough not to know better.

If it really is time for you to change your heater, call your current company and then call around and get the best deal you can – become an informed consumer and help make it impossible for these guys to continue their deceptive ways.

Mike G
Toronto

How to buy your rental water heater

Please join: DE SUCKS!!!!!!!!

http://www.facebook.com/home.php?sk=group_123449771075952

I foolishly thought that since I was such a good customers, paying for a rental for almost 6 consecutive years without ever calling for anything at all, I would have not a problem: WRONG!!!!!!!! I found out that the tank was over 16 years old. The 1st tech showed up only to confirm the leak and dis not bring a replacement tank. They said they’d return to exchange the tank, I waited and waited . . . The 2nd tech didn’t even show up at all. I called DE to advised them that no one showed up and they said I’d have to wait until tomorrow. So at this point, I still have no hot water in the house.

I am just so upset about the extremely poor customer service that I am DONE with DE. I read this and other sites and I have come to my senses. I am too wired to sleep, plus I haven’t showered today becuase I have no hot water.

Nina (another poster — near the top) is right, renting a HWT is just weird. It’s a direct parallel to the days when people used to rent their home phones from Bell Canada. I thought about that and just laughed, ridiculous!!!!!

Tomorrow morning, I’m going to Home Depot. After 6 years of renting the HWT, I could have bought one with that money. DE is not getting another penny from me.

PS. I found out from their Customer Care Dept. (which is totally uncaring) that the HWT is 16 years old, past it’s shelf life. So, DE left an old, rusty, defective product in my house past its lifespan yet I am responsible for the damage it caused. Claiming, I should use my home insurance and pay the deductible and fight them teeth and nail for the uncovered portion, NO THANKS. I have wasted enough time waiting on hold while they come up with reasons why this malfunction is somehow my fault: GOOD RIDDANCE DE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Currently live in Winnipeg and replaced my 40 gallon gas water tank to a 60 gallon electric. Since electricity rates are regulated and the gas is not, this was a better cost savings in the long run. Neither was a rental. If I was still living in Ontario, without question would own and have a gas hot water tank. Manitoba enjoys the lowest rates for electricity in North America. After dealing with the fiasco of Ontario Hydro’s complete malfeasance and over double the cost for electricity within a year of there “Restructuring” for bilking the customer, can’t say I Miss Ontario any more. Thanks to Queens Park and Toronto in general for the mess you made of a good province.