From the Archive: Hot Water Money
Rented Water Heaters: Keep, Buy Out or Replace
Many Ontario homes have a water heater they do not own. Whether to keep renting, buy it out or replace it depends on a few facts in your paperwork.
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The basics
Water heater rentals are typical over Ontario. You pay a monthly charge, and the rental company owns and services the tank. When the tank fails, they replace it. The catch is that rental contracts can carry buyout schedules, removal fees and terms that make switching costly if you do not read them first.

Working through the decision
- Find your contract. Look for the company name on a sticker on the tank, then request your agreement and account history.
- Check the buyout terms. Many contracts include a buyout price that changes with the age of the tank.
- Note the tank's age. The serial number typically encodes the manufacture date.
- Compare. Weigh ongoing rent against buying out the existing unit or replacing it with one you own.
- Plan the return. If replacing, the rental company usually expects its tank back. Ask how removal and return work and any fees involved.
Ontario introduced consumer protections around door-to-door water heater rental sales in 2018. If you were signed up at the door, check your rights with Ontario's consumer protection office.
Keep this kit by the main shut-off
- Flashlight or headlamp
- Bucket and old towels
- Adjustable wrench and slip-joint pliers
- Flange plunger for toilets, cup plunger for sinks
- Label on the main valve so anyone can find it
Traps to avoid
- Signing a fresh rental at the door without reading it.
- Throwing away the rental tank. It belongs to someone else.
- Assuming the monthly fee includes everything. Check what is covered.
- Replacing a tank without checking venting and gas line sizing for the new unit.
Stop and phone a plumber when
- 1A ceiling or wall starts dripping
- 2More than one drain backs up at once
- 3You smell gas or sewage indoors
- 4A valve will not turn or drips when touched
When to bring us in
Call when you have decided to own. We can install a new gas tank, an electric unit or a tankless heater, and leave the old rental tank ready for return. Our tank versus tankless guide helps with the choice.
Straight answers to common calls
Can I just stop paying the rental?
No. The contract terms apply until you buy out or return the tank as the agreement specifies.
Who removes the rental tank?
Arrangements vary by company. Ask the rental provider how they want it returned.
Keep reading
- Gas Water Heater Replacement in Oakville
The tank is rusting at the base, the water runs lukewarm, or a puddle has appeared.
- Tankless Water Heater Installation in Oakville
No tank in the corner, heat only when a tap opens.
- Tank vs Tankless Water Heaters
Two machines, one job.
- Water Heater Repair in Oakville
The shower runs cold.
Ready when you are
One call books the visit. Tell us what you are seeing and we will tell you straight what it likely is.