Moving to a new place. What would be a better option? Planning on being there long term. Or are there better options to Reliance?
Buy or Rent Water Heater?
- Thread starter Brookstone
- Start date
Just replaced my water heater, furnace and A/C with rentals... Fixed monthly cost, one phone call and no charge if anything goes wrong, servicing included. Direct Energy are cheaper than Reliance, and based on industry reviews they install better quality equipment.
Buy. I purchased a 9-year tank for about $500. 14 years later it's still going strong. No repairs have been required. Probably took 6 years to "pay off", given the rental rates of the day (which I'm sure have increased significantly since). The money I've saved over the years would easily cover any repair costs.
Would purchase again in a heartbeat.
Would purchase again in a heartbeat.
I bought my system 7 years ago. My water heater was 900. I've had one repair for 150(happened on a holiday weeking so they dinged me). I'm not sure what the rates are 25-30 a month? Math says at 300 rental per year that's 2100 dollars I would have spent vs 1050. So double my money. Triple if I get 3 more years out of it.
Just get a good guy to do your install.
Just get a good guy to do your install.
I agree, you really should buy your own tank. My math, as a couple of posters have indicated, suggests that over time it can be half of the cost of renting. When I decided to get rid of the rental unit, I was shocked at how much he rate had increased over time - on the very same tank! When I lease a car, they can't hike the monthly payment whenever they want, it stays the same until I get a new car. Whatever today's rates might be, you're guaranteed that it will go higher on a regular basis, making the math on rentals look even worse.
Also, if I wake up one day and my current tanks craps out on me, one call to Direct Energy has a new installation on a rental the same day if I decide to go back to renting. I bought my tank 9 years ago and have had no problems, so I've been cash positive for a long time...
Ditto. My tankless also heats the house, and the gas bills are way down. It is a finicky device with sophisticated and pricey parts that have needed more expert (and expensive) service than expected, but even so we're still ahead of the service contract fees, and pocketing the rental we are not paying.
I hope it works out for you, but I'd be interested in seeing the monthly rates that you end up paying in the next 5 years or more. As I said in my earlier post, they continually increase the rates over time, even though it's the same equipment...
Better yet: Compare his total paid—gas bills aside—with the total paid up front and as you go buy a purchaser over the same period. Short term rental wins, long term owners win (which is how they have machines to rent to you)
If convenience is what yo want, you pay for it. Every month. Whether the machines were paid for long ago, are brand new, or now on their last legs.
What is the warranty like on these things if buying? Did you all just buy from home depot? So if it runs into a problem would you call home depot or have to find an independent to check and fix?
Your plumber will likely offer to sell you one if you ask, with the manufacturer's warranty. And she'll certainly install, as will Home Despot/Lowes/Rona. Or you could call a manufacturer, or Hydro or Enbridge for a referral. Likewise they'll probably all repair, but in the days of Google repair and purchaseshould be no harder to find than using Yellow Pages was.
You should note that connecting (and most definitely running new) gas lines is for licensed gas-fitters (which many plumbers are) although that doesn't mean other folks can't safely screw the connections together and test them. Also note that if the thing leaks, even if someone else pays for your new carpet (or the tenant's on the floor below) it's still a pain for you. Put a water-heater pan under it running to a floor drain, if that would be a problem.
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Usually 3 year warrentee. So about the price of the rental for 3 years on average. Every year after the warrentee ends is a free-bee.
I think I bought mine from the gas company. They came and took out the rental I had and installed the new one.
I bought the rental that was in my new house from Direct Energy. The house was also a new build, so I used their tank for 3-4 months to test it and make sure it had enough capacity etc. 75 gallons power vented is NOT cheap. Then I called Direct Energy and offered to buy their tank from them... it was already installed and in my house, i thought i could get a bargain.
Unfortunately, they wouldn't sell me that tank at a discounted rate until 12 months had passed, and then the amortized value of the tank would drop. So I had to rent for a total of 12 months before buying, and i'm still ahead, since it has lasted three years now. I think that was the break-even point for me.
Most tanks break down because there is some platinum plate or something that helps prevent corrosion... am I right on this? any plumbers care to chime in? Hopefully i can replace that plate before it cannibalizes the tank. I can tell in my humidifier some of the same process is happening, there is a metal plate that is getting sacrificed inside it.
Unfortunately, they wouldn't sell me that tank at a discounted rate until 12 months had passed, and then the amortized value of the tank would drop. So I had to rent for a total of 12 months before buying, and i'm still ahead, since it has lasted three years now. I think that was the break-even point for me.
Most tanks break down because there is some platinum plate or something that helps prevent corrosion... am I right on this? any plumbers care to chime in? Hopefully i can replace that plate before it cannibalizes the tank. I can tell in my humidifier some of the same process is happening, there is a metal plate that is getting sacrificed inside it.
