Should You Rent a Furnace in Canada?
Furnaces are essential for keeping homes warm during Canada’s harsh winter months, especially in colder regions. These days, the need for home heating systems has seen massive growth. 2022 saw the furnace market’s value reach $8.4 billion, and by 2030, predictions indicate a massive spike in the demand.
For those not wanting to put a dent in their funds, might find renting as another potential option. However, before you think of renting a furnace, it’s vital to have a proper understanding of certain facets, such as cost implications, drawbacks, benefits, etc. Keep reading this blog to gain more insights on renting a furnace for your residence.
How Will It Cost to Rent a Furnace?
In Canada, the charge for contracting a home heating system will vary greatly because it’s based on certain aspects, such as:
- The place where you’re located
- The rental firm you choose
- The efficiency and size of the unit
But on average, you have to provide a rental charge of CAD50 to CAD100 every month. This particular includes charges for things like repairs, upkeeping, and installation. Apart from that, you must study the entire rental contract before signing it. Many businesses include extra expenses for repairs that are not mentioned in the contract or for service calls.
All these costs will get added up over time. Here is a small illustration: “When the monthly rental charge of CAD75 becomes CAD1000 every year, in ten years it will become CAD10,000”. You should gain a proper understanding of the costs as it will let you decide whether or not leasing the heating equipment is the right choice for you.
Renting a Furnace: Getting to Know the Benefits
When you opt for the furnace rentals for your home, it will provide you with certain benefits, which are listed below:
Pro: The Presence of Initial Expenses
The coolest part about choosing furnace rentals is that you don’t have to pay the upfront expenses. Buying home heating equipment might be a financial burden for many Canadians, and at times, it can cost thousands of Canadian Dollars. So, by leasing these appliances, you will get access to warm water without making any big investments.
Pro: Upgrading to a Power Efficient Unit
Many furnace-renting businesses will provide you with power-efficient and modern heating models. When you start using these models, it not only offsets some of the rental expenses but also lowers the power bills greatly. Besides that, the latest heating units are a lot more environmentally friendly than old ones.
Pro: Repairs and Upkeeping Included
The majority of the rental businesses include the repair and supervision services of the furnaces. This means homeowners don’t have to spend their funds on such services when the system breaks down or stops operating. In return, you will end up saving plenty of funds, which will also prevent you from finding a professional to fix the unit.
Pro: Provides Flexibility
When you rent a heating system, you will get a lot of flexibility. When you wish to shift to a different location, it will be much better to sign a furnace renting contract than to buy the appliance. This is because the rental company will either terminate the contract or transfer the equipment to the new location.
The Drawbacks of Furnace Rentals
Just like there are some great advantages to contracting a furnace, you will encounter certain drawbacks to furnace rentals as well. These are:
- Limited Ownership: Leasing a furnace doesn’t mean you own the entire system. This will restrict the modification or selling of the unit without obtaining permission from the rental firm. Once the rental contract ends, you have to return the unit to the company. This will leave you without any heating unit, and if you want it back, you must sign or renew the contract.
- Long-Term High Expenses: Even though you don’t have to pay the initial cost when you rent the furnace, in the long run, renting will become pretty costly. It’s because the monthly charges will start to add up, and you might have to pay a lot more.
- Has Limited Choices Available: Depending on the type of rental business you choose, the furnace options might be limited. This means you might not come across the same kind of heating equipment that you want and will normally get when you plan on buying one. This can compromise both on the efficiency and features.
- Contractual Obligations: Every furnace rental contract contains strict obligations. When you terminate the agreement during the early phases, you have to pay a termination fee. The contracts might also contain certain clauses that restrict flexibility when it comes to the servicing and usage of the unit.
Factors You Should Consider When Renting Furnaces
If you have planned to rent a heating system for your residence, you must consider the facets mentioned in this section:
Maintenance and Services
You should check the responsiveness and quality of the maintenance and services of the leasing company. It’s mandatory to choose a company that offers effective and prompt services, especially during the harsh winters in Canada.
The Monetary Situation
Study your present monetary situation and plans. If you have the funds to buy a heating system, it will certainly be a cost-effective option for you. However, when you want manageable and smaller payments every month, leasing is the best choice.
Power Efficiency
It’s important to check the energy efficiency of the rented heating system. These units will help lessen energy bills and operate perfectly without any issues. Before you sign a contract with the leasing company, check to see whether or not they provide such models.
Example: A 10-Year Cost Comparison
In this section, you will get to know about a 10-year cost comparison where an individual is thinking of whether to purchase a renting a heating unit:
Purchasing the Furnace
- Price of High-Efficiency Heating Units: Approximately CAD4,000
- Yearly Servicing Expenses: CAD200 (On an average)
- Occasional Unit Repairs: CAD1000
- Overall Expenses: 4000 + (2000 x 10 years) + 1000 = CAD7,000
Leasing the Furnace
- Monthly Rental Charge: CAD75 (This includes the repairs and servicing)
- Overall Cost in 10 Years: 75 x 10 years x 12 months = CAD9,000
The above-mentioned comparison is a simplified illustration, which shows that purchasing heating equipment will be a much better option during the 10-year period. However, certain contract guidelines and separate situations can have a massive impact on these figures.
Considerations to Make Based on Different Areas of Canada
Some important things need to be evaluated based on the different Canadian regions.
Northern Canada
This region is extremely cold and is a constant challenge for the people here. Leasing a heating system here might be an ideal choice. Since you’re residing in the northern Canadian parts, it would be a good idea to turn it into a practice choice even though the long-term expenses would be much higher.
Ontario
The city has incredibly cold winters, and having a furnace will be extremely crucial. Leasing will give you peace of mind because both the repairs and the unit’s servicing are included in the rental contract.
Atlantic Canada
The maritime regions have mild weather, and your decision to purchase or rent will rely a lot more on monetary considerations than climate needs. If you reside for such reasons, purchasing the heating equipment will be an ideal choice because of the lower heating necessities.
Western Canada
Areas such as Alberta and British Columbia can have different weather conditions. Renting a heating system in these regions will be an immaculate option for people who prioritize both flexibility and amenities, especially in places where the weather changes rapidly.
Conclusion
When you’re thinking about whether to purchase or rent a heating unit in Canada, you will need to assess various factors, such as the local weather, monetary situation, and more. Renting such appliances will provide you with a lower initial cost, which includes flexibility and servicing. You can also speak about such matters with the experts at Smile HVAC, who can offer you great advice and insights when you plan to rent a home heating unit.
Furnace Rental vs. Purchase
FAQ
Can I choose my own service provider when I rent a furnace?
This depends on your rental contract's terms. Some contracts may require you to use the rental company's service providers, while others may allow you to choose your own as long as they meet the contract's conditions.
Are there any hidden fees associated with renting a furnace?
Some rental contracts may include additional fees such as installation, removal, or buyout fees. It's important to read your contract carefully to understand all potential costs.
Can I purchase the furnace at the end of the rental contract?
This depends on your rental contract's terms. Some contracts may allow you to purchase the furnace at the end of the rental period, while others may require you to return the furnace or pay a removal fee.
Can I cancel the rental contract early?
Some rental contracts may allow for early termination with a fee, while others may not provide provisions for early cancellation. It's important to understand your contract's terms to know your options for early cancellation.
Is renting a furnace a good idea?
The decision to rent a furnace depends on your unique needs and financial situation. Renting can be a convenient and affordable short-term solution, but it might be more costly in the long run. It's important to weigh the pros and cons and consider alternatives before deciding.
Can I rent a high-efficiency furnace?
Yes, most rental companies offer a range of furnace models, including high-efficiency units. However, the monthly rental fee might be higher for these models due to their higher upfront costs.
Is a furnace rental contract transferable if I sell my home?
Most rental contracts allow for transfer to a new homeowner. However, some potential buyers may be hesitant to assume a rental contract, which could affect your home's appeal.
Does renting a furnace affect my home equity?
Renting a furnace does not directly affect your home equity. However, the cumulative cost of renting a furnace could potentially impact your financial situation and your ability to build equity through mortgage payments.
Can I rent a furnace if I have bad credit?
Some rental companies do not require credit checks, making it possible for homeowners with bad credit to rent a furnace. However, it's important to understand the long-term costs and contractual obligations associated with renting a furnace.
Are there government rebates available for renting a furnace?
Government rebates are typically available for purchasing energy-efficient appliances, including furnaces. It's advisable to check with your local government or utility company to understand what rebates or incentives might be available.
