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  #1  
Old 2013-03-09, 12:06 AM
jebise101 jebise101 is offline
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Default DONT RENT the Hot Water Tank

I'm sure you are all aware about the rental agreement imposed by the builder with a company that rents its water heater.

I would like to let you know its utter BS and a total scam, please call the company and buy your tank right from the start or have them take there POS and install your own or even get a tankless one.

My parents bought a house 3 years ago from a builder and signed up with Reliance @ $24.99/mth fast forward 3 years and they would have almost paid off the asking buyout price of $1165, so they wasted 3 years paying rent and not a single issue. They charge $165 for pick up of THERE OWN PROPERTY or force you to buy it out.

I have already been getting quotes and you can get a 50 gallon power vent installed for $1300 - $1500, if you go to home depot it cost about a grand plus tax, $830 tank + $200 install + tax.

I got some contractors that do "group buy" and if I can get enough people interested then I hoping they will set up a Group Buy event and will be able to provide a much better price and a much better tank (John Wood/GSW).

Anyone interested?
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Old 2013-03-11, 12:17 PM
wilkie wilkie is offline
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I rent my hot water tank and have had it serviced 3 times already (in 2 1/2) years. each time was what would be considered off hours stat holiday, saturday or Sunday once was a cheap sensor part but the labour for the repair on Canada day would have been costly. The other 2 times were for the temp control computer what ever it's called and the service guy told me to be thankfull I wasn't paying the bill.
So for me renting has been well worth it!!
BTW from reliance I only pay $24.95 per 3 months.
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Old 2013-03-11, 04:31 PM
kei78 kei78 is offline
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wilkie, how are you getting your rental for $24.95 per 3 months? Which builder was your house?
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Old 2013-03-11, 05:49 PM
BartBandy BartBandy is offline
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I don't think Reliance would rent me a kettle for $24.95 per 3 months.
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Old 2013-03-11, 07:40 PM
TKG26 TKG26 is offline
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Just because you don't like something does not really make it a scam..

Some FACTS:
-Builders own your home till closing day
-when you sign your purchase agreement you agree to many things that the builder will not negotiate.. including such things as including a furnace and in some cases a rental water heater
-your new home is only yours when you close and take possession.
-once you own the home you assume the rental of the tank as per your purchase agreement.

These things are important to understand before you go off half cocked on the phone and forum complaining about getting scammed.

Its the builder who builds the homes and arranges for all the parts of the home including a water heater. IT is the builder that requests the rental tank. Yes they have agreements with the rental company. ITs a win win situation. But its the builder who is not giving you the option to buy the tank. Not the rental company, the builder is the rental companies customer during the construction phase not the new home buyer.. Why they dont offer it as an option is beyond me. The could totally mark that up double and make a bundle and we would just nod and buy it It also shocks me that builders request 70$ high effecient rental tanks for a 1300sq/ft town house yet dont offer radiant floors and upgrade to someone justify such a beast of a tank. AGain its the builder making these arrangements..

Read your purchase agreement, read your rental water heater contract. There are ways out of the rental agreement. Including buying out the tank.

As to the quality of the rental tank. I cannot speak for Reliance but from what i have seen in the field they use a range of brands similar to Direct Energy(giant,rheem,gsw,johnwood,bradfordwhite,AOSM ITH ect ect)... Believe me the tanks used are not POS... Remember rental companies dont want junk. Junk means service calls and those cost money and eat into profits. So again because you don't want to rent your tank does not mean the tanks used are inferior to what you can get at home depot.

Yep i service rental water heaters, rent or own does not really concern me, at the end of the day the tanks will still require repairs. Just like anything rent vs owning has its pros and cons... As wilkie points out he has had a range of issues with his tank. Ruff estimate he has saved about 300-400$ in labor and probably close to 600-800$ in parts.. I know of many tanks that have gone 10-15 years without any issues at all... pro vs con for sure.... The latest generation of Powervented tanks have been problematic. ALL BRANDS have had issues. 4 of them share the same thermostat. many other parts are interchangeable. I spend half my days work on tanks under the age of 10. MAny service calls in new construction areas under 5 years old.

Anyway yes if you rent your tank you will pay for it over a few times during the life of the tank. This is not a secret. ITs not a scam. ITs a appliance that includes free(included) service and all the overhead that goes with that. Sometimes you come out ahead some times you dont... But the rental company is going to make a profit. many appreciate the peace of mind of rental knowing all costs are covered and if the tank expires it gets replaced asap. You can not think of a rental tank like a rental tv receiver. A tank will need repair and you can not swap it your self at the local cable companies store.


Regarding the 165$ removal fee. That is pretty cheap considering they broke a rental agreement after 3 years. And as you point out they only broke even at that point. Those tanks do not just disconnect themselves from the vent,gas and water lines and walk up the stairs to the end of the driveway themselves. I bet 2 installers showed up to remove that tank.. they dont work for free.


Wilkie: That rental rate is sweet. Looks like a promo that never expired. 9$ a month is great... The lowest rental i know of today is around 14$ a month for a natural draft tank(older homes)

My 2cents worth...

UPDATE:
Some interesting documents for new home buyers and DE rental tanks... Buyouts are very attractive.

http://residential.directenergy.com/...ooklet_Web.pdf

Last edited by TKG26; 2013-03-11 at 10:45 PM.
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  #6  
Old 2013-03-15, 01:02 PM
wilkie wilkie is offline
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My builder was Crystal homes.
And sorry was my mistake it's actually about $48 every 3 months but even still thats only $16 per month. The other was a promo just for the first year.
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Old 2013-03-22, 12:46 PM
SoNgMaN SoNgMaN is offline
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I have tankless with Storage tank, I think it is $45/mth. glad to pay it for piece of mind. I've had it serviced twice in 2.5 years. a solenoid the first time and a leaky seal the second.
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Old 2013-03-22, 12:57 PM
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good2know good2know is offline
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your tankless has a tank?
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Old 2013-03-22, 01:36 PM
TKG26 TKG26 is offline
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Its an add on that prevents the "cold water" sandwich effect and gives a more instantaneous feed of hot water.. I know it's backwards eh? Its only a small storage tank. Helpfully with low flow front load washers and dishwashers
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Old 2013-10-18, 12:44 PM
cdndsi cdndsi is offline
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Quote:
Originally Posted by SoNgMaN View Post
I have tankless with Storage tank, I think it is $45/mth. glad to pay it for piece of mind. I've had it serviced twice in 2.5 years. a solenoid the first time and a leaky seal the second.

How is that working for you are you seeing any savings in gas charges.
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