SCAM!Anyone renting their water heater tank?

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This is mostly aimed at BITOGers living in Ontario, but maybe water heater tank rental scam is also gaining traction in other provinces or in US. For some reason it's huge here to the point where you cannot buy a brand new house from a builder without an assumed hot water tank rental agreement.

Anyways, last months I finally had enough and cancelled the rental of the water heater tank. My house came with an assumed water heater contract. I'm not exactly sure how one can get out of these scams without paying them all sorts of "fees", but for the first 5 years the cost of getting out is outrageous.

Since I was over 5 years it was reasonable, but still, I had to pay ~$120 for them to come in and take out their property out of my own house. And here is the kicker, before I asked them to come and remove it, I inquired about buying the tank out, as it is one of the options. This is an over 5 year old unit with no warranty whosoever. They quoted me $1200 + taxes. I picked up an identical brand new unit, with 6 year warranty from HD for $950+ taxes. Even the guy working for the rental company (a technician and not a salesman), that came in to pick up the tank admitted that it's basically a scam.

Who else got out of this scam?
 
Quebec has had it's share of water heater rental scams... Like disgruntled crew showing up MIDNIGHT to take back their water heater.

Can't name any names of the company, but chances are if you aren't a Landlord that has the Tenant pay the rental on the water heater (Landlords love this, free service, not responsible for the heater at all, and the Tenant pays).

Anyway, once I moved into an apartment and the former Tenant was 6 months behind in her payments.

Boy, did they ever try hard to get me to pay for her back payments.

They tacked on 6 months use right on my first bill for 6 months that I wasn't even on the lease. I didn't even know the woman.

Steer clear of renting hot water heaters in Quebec anyway.
 
Wow, I hear that. My parents moved into their house 25 years ago and the tank has always been rented. Personally, this is nothing but robbery and extortion. They havent tried to escape, but I imagine it would not be easy. In that 25 years the tank has been changed once, shortly after they moved in. Every month for 25+yrs they have handed over 15ish dollars to the parasitic middleman known as Direct Energy/Enercare. The company name keeps changing for some reason.... these guys are real crooks they're the type to instruct their servicemen to sabotage parts on benign/routine visits. They will take a pliers to a high limit switch, they will bogusly diagnose problems and convince you to do service. The nickel and diming is a real part of their business model. The extortion surrounding water tank rentals is one of their oldest scams.

Look you're real lucky to have gotten out, there is nothing having a company steal your lunch money and then hold you hostage to random fees when you speak up against it.
 
Originally Posted By: Falken
Quebec has had it's share of water heater rental scams... Like disgruntled crew showing up MIDNIGHT to take back their water heater.


Are these the guys coming up to your door, flashing dubious if not fraudulent credentials, demanding entrance to the property to "verify government eligibility" to rebate programs and next thing you know you're renting equipment from some parasitic entity??

I've got zero tolerance and zero patience for these people. I tell them to get off the property as soon as I open the door (sorry guys) and they try to prolong the interaction with every trick in the book (so, I'm not sorry guys).
 
I thought only US has such scam, Canadian isn't known to play this kind of game.

I bought 40 gallon gas water heater for my previous house 1 year after I moved in 1997. I bought that house knowing the water heater was very old about 16-17 years. I paid less than $400 installed from Sears(floor model but got brand new one in box) and haul away the old tank.

That water heater worked very well for 17 years, when I sold the house in 2014 it was working as new.

Renting water heater is very unusual, the rental company is making a killer with month fees.
 
Wow...I never heard of renting your hot water heater.

Places like HH Gregg and Rent-a-Center will rent you just about any household device but this is the first time I've heard of water heaters.

Can you not just buy your own at Home Depot (or the Canadian equivalent) or is rental something mandated by the gummint?
 
I've never heard of such a thing, very strange.

It sounds illegal that you would be forced to buy some kind of water heater rental agreement when BUYING your new home...Sounds like a gypsy scam to me.
 
I remember this being the case at a home I looked at purchasing a few years ago, although I didn't buy it and have no personal experience.

Still, a hot water heater is easy to install.

DIY and save your money.
 
Wow Crazy
They are so cheap why would people rent them- well now we know.
It took 4 years but I won buying my 1000 gallon propane tank.
It came with the house and the $4-$7 per gallon propane.

Well I was persistent and beat the game. Last fill I got was 67 cents a gallon........
 
Trust me guys, it's very real, I'm not a lawyer, but they are obviously using some sort of a loop hole. What's sad though, is that most people treat it as normal when buying a new or used house that has one of these rentals. That's what's insane.

Also, I'm starting to see these companies advertising renting the entire HVAC systems. From what I've read so far it costs about $7000 to buy the system out, there is no cancellation option and they put a lien on the property! Stay clear!
 
The electric utility I work for has a water heater lease program. You can lease an 80 gallon heater for $12.50/month or a 120 gallon for $15/month.
 
Originally Posted By: PeterPolyol
Wow, I hear that. My parents moved into their house 25 years ago and the tank has always been rented. Personally, this is nothing but robbery and extortion. They havent tried to escape, but I imagine it would not be easy. In that 25 years the tank has been changed once, shortly after they moved in. Every month for 25+yrs they have handed over 15ish dollars to the parasitic middleman known as Direct Energy/Enercare. The company name keeps changing for some reason.... these guys are real crooks they're the type to instruct their servicemen to sabotage parts on benign/routine visits. They will take a pliers to a high limit switch, they will bogusly diagnose problems and convince you to do service. The nickel and diming is a real part of their business model. The extortion surrounding water tank rentals is one of their oldest scams.

Look you're real lucky to have gotten out, there is nothing having a company steal your lunch money and then hold you hostage to random fees when you speak up against it.


I don't get this. If it's rented, then repairs are free.
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Why rent if you're on the hook for the repairs? Might as well buy in the first place.
 
Originally Posted By: KrisZ
My house came with an assumed water heater contract.


Who "assumes" anything when purchasing a home? Either there is or is not a contract-there should never be any assumptions made.

But then I have to also ask who would be crazy enough to "rent" a water heater or HVAC system?
 
What in the actual [censored] is renting a hot water heater? This is the first time I have heard of such a scheme. Here a hot water heater is treated like any other commodity appliance.

I could see a leasing/rent to own thing for cases where someone cannot afford a $1000 appliance, but needs hot water...but for that sort of thing to be standard procedure sounds crazy to me.
 
Eight years ago I got rid of my rental water heater.I heard you could buy it out.
It was 14 yrs old and they said to buy was $40.00. I said sold. It lasted anther
6 yrs and I am 2yrs into a new water heater. Payback on the new water heater is 48 months
and it has full all perils warranty for six years.
 
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