Are there advantages to leasing a water heater?
A water heater has a lifecycle of somewhere between 10 and 15 years (around 12 years on average). If you notice that your hot water isn’t as warm as usual, has a yellowish tinge (indicating the presence of rust) or runs out quickly, these are signs that it’s time to repair or replace your water heater.
If you decide to replace your water heater, you have two options: leasing or purchasing. Each of these solutions presents certain advantages and disadvantages. To make an informed choice, there are various factors to take into consideration, depending on your particular situation.
Leasing a water heater
A number of companies, including Gaz Métro Plus, Norco and the most well-known one, HydroSolution, offer water heaters for lease.
- The cost per month ranges from $14 to $25. This includes installation, maintenance and repair work. In general, no deposit is required.
- In the event of a problem, you have access to free 24/7 emergency repair services.
- Once your water heater reaches the end of its lifecycle (a maximum of 15 years), a new one will be provided and installed at no extra charge. The companies will generally haul away your old water heater, as well.
- Some lease agreements include an upgrade clause allowing you to change the size of your water heater.
- The long-term costs are high. For example, if you lease a water heater at $14 per month for 10 years, you’ll end up paying a total of $1,680.
- There’s a limited choice of models, so you need to make sure you verify the energy efficiency of the proposed equipment.
- Most lease agreements stipulate that the leasing company will not be held liable for any damage stemming from problems with the water heater.
- Lease agreements contain numerous clauses related to maintenance frequency, repairs, emergency response times, etc., so you must pay careful attention to make sure you know what you’re committing to.
Purchasing a water heater
- This is the most economical solution in the long run. The price of a standard water heater, including installation, ranges from $500 to $1,000.
- You have a vast selection of models to choose from with various options in terms of capacity and energy efficiency.
- You have an ample choice of providers, from plumbers and major home improvement stores to specialized companies.
- Some providers offer financing.
- Financial aid is available when you exchange your natural gas or propane powered water heater for an energy-efficient model.
- There’s a fee for installation. Even if you install your water heater yourself, a certified plumber has to come and verify the installation.
- You are responsible for maintenance and repair costs. However, you should be aware that typical water heater repairs are fairly inexpensive ($35 on average).
- The warranty on parts and installation is for a limited time only, usually between 6 and 12 months.
- A number of insurance companies refuse to cover damage caused by water heaters more than 10 years old.
Final thoughts on leasing vs purchasing a water heater
Leasing a water heater could be an advantageous solution for rental property owners who aren’t concerned with management and who will pass on the cost of the water heater lease to the tenant through the rent. Otherwise, purchasing a water heater will be your best option, as it’s more economical and won’t require you to enter into a contract with a service provider.
For the purchase and installation of a water heater in the Montreal area, you can count on the team of experts at Plomberie Roger Chayer.