Water Heaters - rental vs owned. What is the payback timeframe?

[92redragtop]

For the folks who converted from rental to owned Water Heater tanks - what was your payback timeframe (including buyout of rental if any, water heater tank cost, and installation)?

(tank version only not tankless)


Tanks!

[Gabe]

I can only speak of tankless, but mine was (based on my quick math of purchase price of the unit and parts/ labour to install the new system with a different exhaust system) around 4 1/2 years.

[ZR]

Said fawk the rental and went with an owned tank.

[FoxRod]

Will need to look into this too, subbin...

[5.4MarkVIII]

Really depends on what type. And size.

[USAWIT2]

For mine, my tank is older style with the draft hood, my rental is $15+hst a month so roughly $200 yr, cost of tank is about $600 + say $150 install, so payback is just shy of 4yrs

Sent from my ONEPLUS A6013 using Tapatalk

[hammerhead]

Bought a house brand new in Brampton about 12 years ago it had an endbridge direct vent rental p.o.s. constantly throwing codes the first year and never worked - bought an electric water heater and installed it myself - never had an issue until it came time to sell the house - funny thing nobody new what the electric water heater was and where afraid of it - still had the endbridge rental in the basement and never moved it as it was tied into the gas line - this is the beauty of rental - removed me electric heater and called enbridge to replace their p.o.s. and it took a bit of arm bending but the new owners of the house got a brand new gas rental no charge to me or them...lol hopefully it was better than the p.o.s I had...

edit. redid the math on this - was 2005 when we moved into the bran new home and by 2006 switched back to electric...time flies when ur constantly replacing shit...lol

[hsousa88]

I rent.. Never put much though into it, just seems easier. When it goes (they all do) they gimme a new one.

I’m now thinking about the episode of the sopranos when Tony’s tank blows up. Thanks.

[ZR]

Ours was poochy for years Hugo, they flat out refused to do anything about it until it leaked. Bought my own n told em to take a flippin hike.

[True Blue]

Depending on the age of your current tank, could be cheaper to just buy it out and run it to the ground. That's the route I took.

[RedSN]

Yep, my last house had a tank rental. I called them to offer to buy it out, and THAT’S when they said: “oh, that’s a very old tank, we should replace it”. Yeah right. They would of left the tank there until it burst. Scam artists IMO. Tank rentals are archaic. Just like phone rentals. (who here is old enough to remember renting a phone? Seems ridiculous now).

Bite the bullet. Buy the tank.

We bought a closed-combustion gas water heater when we did the basement reno. Couldn’t be happier.
Picked it up from Lowe’s. I hooked up the water, USAWIT hooked up the gas and piped the intake and exhaust.

[83 5.0]

I bundle a service contract for my furnace with the water heater rental, since I travel, keeps the Supreme commander happy if anything goes wrong with either one. About $300.00 a year with reliance. Never had a problem getting them out, and about every 4-5 years I get a new dip tube or replacement water tank.
I pay for piece of mind and peace on the home front.

[Snaketamer]

Dumped my rental ~20 yrs ago and never looked back. First gas tank lasted 13 years...cost $500 installed which ended up costing $3.20/month. On my second tank which was installed in 2013.

[IanGTCS]

I own mine, came with the house. I know enough people that I could get one installed quickly for a decent price. My mom has rented for years and it has paid off for her, over the years they have failed on Easter Sunday, Thanksgiving and Christmas Eve among other times.

Unless you live somewhere with hard or acidic water that damages them I'd buy.

[92redragtop]

The replacement for what we have would cost about $930 for the tank based on what Home depot has listed: Power Vent Natural Gas Water Heater, 50 Gallon

https://www.homedepot.ca/product/rheem-power-vent-natural-gas-water-heater-50-gal/1000792787



The new house came with a rental tank back in 2000 but that one broke and flooded part of the basement several years ago (maybe 2012 or 2013? Insurance company tried to collect from them but not sure they were successful) - Enbridge came in during clean-up and swapped it out but then re-started the clock on the rental contract and buy-out (did not advise us until after install) which meant big $$ to buy out early. The one they installed back then now needs repairs and they'll come swap it out but will re-start the contract and buy-out clock - sounds like a scam to keep folks on the tank rental hamster wheel due to high buy-out rates in the first 10 years.

That said, let's say a replacement tank runs $1600 to $1700 (all in) which puts the break-even at 4.5 years.

Does that sound about right in terms of breakeven?

[92redragtop]

Yep, my last house had a tank rental. I called them to offer to buy it out, and THAT’S when they said: “oh, that’s a very old tank, we should replace it”. Yeah right. They would of left the tank there until it burst. Scam artists IMO. Tank rentals are archaic. Just like phone rentals. (who here is old enough to remember renting a phone? Seems ridiculous now).

Bite the bullet. Buy the tank.

We bought a closed-combustion gas water heater when we did the basement reno. Couldn’t be happier.
Picked it up from Lowe’s. I hooked up the water, USAWIT hooked up the gas and piped the intake and exhaust.

Haven't seen closed-combustion gas water heaters in my searches. Downside?

[92redragtop]

For mine, my tank is older style with the draft hood, my rental is $15+hst a month so roughly $200 yr, cost of tank is about $600 + say $150 install, so payback is just shy of 4yrs

Sent from my ONEPLUS A6013 using Tapatalk

Mine is power vent 50 gallon - Home Depot looks like almost $1,000 for replacement tank.

[92redragtop]

Depending on the age of your current tank, could be cheaper to just buy it out and run it to the ground. That's the route I took.

Tank needs to be replaced so it appears the buy-out doesn't apply (lucky for us - as long as it doesn't break in the short term).

[92redragtop]

Really depends on what type. And size.

Power vented natural gas - 50 gallon. Didn't realize they cost this much.

[RedSN]

Haven't seen closed-combustion gas water heaters in my searches. Downside?
The advantage, much like a high-efficiency furnace, is that it uses outside air for combustion, instead of the climatized room air you have paid for.
Also, in our case, we wanted to close off the furnace and HWT room for sound insulation (therefore limited/little combustion air).

https://www.gsw-wh.com/assets/documents/historic/spec-sheets/GPD435N%200316%20rev%201.pdf

[hammerhead]

The electric hot water heater I purchased at Home Depot was a few hundred dollars - when I moved I took it with me - It is now heating the water in the house we are in now almost twenty years later - I hate electrical anything except for the hot water heaters...If your looking to save and still be on gas, it may be wise to look into tankless - I've never experienced one but heard a lot of good things about them....best of luck!

[92redragtop]

The electric hot water heater I purchased at Home Depot was a few hundred dollars - when I moved I took it with me - It is now heating the water in the house we are in now almost twenty years later - I hate electrical anything except for the hot water heaters...If your looking to save and still be on gas, it may be wise to look into tankless - I've never experienced one but heard a lot of good things about them....best of luck!

Thanks - just 2 of us in the house so a tankless is likely overkill for the amount of hot water we use.

[5.4MarkVIII]

tankless can be a PITA depending on location. if its a long run to kitchen from heater it can take awhile for the water to get hot. this can equal poor performance from a DW and just general waiting. I know a few houses that had tankless heaters installed and then ended up putting small boosters under the sink after being tired of waiting all the time.
my go to plumber also warned us that there are a lot of part issues with some of the tankless stuff.

I have always been of the mind to buy vs rent if your situations allows. I under stand seniors and people just starting out the rental buys piece of mind.

the tank was owned when we bought our place but it was a fairly small electric that wasn't really keeping up to the demand we were putting on it. we wanted to go gas but ceiling height was a limiting factor. we went with a GE hybrid., if demand is high it runs the electric for rapid recovery, otherwise it uses a heat pump to maintain water temp. been super happy with it. so far have not had to touch it other than to clean the filter.
pricy option though,

[RedSN]

we went with a GE hybrid., if demand is high it runs the electric for rapid recovery, otherwise it uses a heat pump to maintain water temp.
I’ve never seen or heard of one of these before. So doesn’t the heat pump steal ambient heat from the room, and pump out cold air? Great during the summer, but not so great during the winter. Would be neat if they could create a combo refrigerator/water-heater.

[Screw]

The replacement for what we have would cost about $930 for the tank based on what Home depot has listed: Power Vent Natural Gas Water Heater, 50 Gallon

https://www.homedepot.ca/product/rheem-power-vent-natural-gas-water-heater-50-gal/1000792787



The new house came with a rental tank back in 2000 but that one broke and flooded part of the basement several years ago (maybe 2012 or 2013? Insurance company tried to collect from them but not sure they were successful) - Enbridge came in during clean-up and swapped it out but then re-started the clock on the rental contract and buy-out (did not advise us until after install) which meant big $$ to buy out early. The one they installed back then now needs repairs and they'll come swap it out but will re-start the contract and buy-out clock - sounds like a scam to keep folks on the tank rental hamster wheel due to high buy-out rates in the first 10 years.

That said, let's say a replacement tank runs $1600 to $1700 (all in) which puts the break-even at 4.5 years.

Does that sound about right in terms of breakeven?


Right on ! 4.5 yrs is correct answer , add a drain pan $40 bux and pipe it to your floor drain just as added security

[Screw]

Kinda like the Giant Pv50 out of Quebec

[5.4MarkVIII]

I’ve never seen or heard of one of these before. So doesn’t the heat pump steal ambient heat from the room, and pump out cold air? Great during the summer, but not so great during the winter. Would be neat if they could create a combo refrigerator/water-heater.

Yes exactly.
It’s not as efficient in the winter when the basement is colder. But it is programable so you can change when it will kick in the elements to maximize efficiency if desired. Can even program a vacation mode where it will lower the temp while your away and then ramp back up for the day you get back.

[92redragtop]

Right on ! 4.5 yrs is correct answer , add a drain pan $40 bux and pipe it to your floor drain just as added security

Drain pan is definitely in the plan - wanted one last time around but they swapped out tanks before we could talk to them about it.




Kinda like the Giant Pv50 out of Quebec

Haven't heard of or seen that brand. The GSW and Superflue from the rental company both failed.

[92redragtop]

tankless can be a PITA depending on location. if its a long run to kitchen from heater it can take awhile for the water to get hot. this can equal poor performance from a DW and just general waiting. I know a few houses that had tankless heaters installed and then ended up putting small boosters under the sink after being tired of waiting all the time.
my go to plumber also warned us that there are a lot of part issues with some of the tankless stuff.

I have always been of the mind to buy vs rent if your situations allows. I under stand seniors and people just starting out the rental buys piece of mind.

the tank was owned when we bought our place but it was a fairly small electric that wasn't really keeping up to the demand we were putting on it. we wanted to go gas but ceiling height was a limiting factor. we went with a GE hybrid., if demand is high it runs the electric for rapid recovery, otherwise it uses a heat pump to maintain water temp. been super happy with it. so far have not had to touch it other than to clean the filter.
pricy option though,

When the rental that came with the house was getting old I was thinking about buying at the time but then it failed and they swapped tanks on an emergency call and i didn't realize that re-started the buy-out countdown which was crazy high in the new contract so had to ride it for a few years while it came down - even now after so may years it would probably be close to $1K buyout but since it's defective it voids the buy-out part so I can get out of the contract with no cost.