Should I Rent or Buy a Water Heater?
Access to hot water is essential for every Canadian home, especially during the winter. Reflecting this necessity, the demand for water heating systems reached $27.9 billion in 2022 and grew to $29.2 billion in 2023.
Yet, many face the dilemma of whether to buy or rent a water heater. This decision depends on assessment of various factors such as long-term benefits, maintenance expenses and the overall costs.
In this blog, we discuss the pros and cons of rent water heater vs buying a water heater, helping you make an informed choice tailored to your specific needs and budget.
Types of Water Heaters: A Quick Insight
Right before you go to the main part, it’s extremely crucial to have a good understanding of the various kinds of water heating systems that are available in the Canadian market. Take a look at the pointers below:
- Tank Water Heating Units: These water heating systems are pretty common, and you will find them in many homes across Canada. The unit comes with a big insulated tank, which stores plenty of warm water. These systems also come in many sizes to match the needs of every home easily and effectively.
- Heat Pump Water Heating Units: These systems operate on electricity, which transmits the warmth from one place to another instead of instantly creating the heat. This makes the heat pump water heating systems much more power efficient.
- Tankless Water Heating Units: These units are also comprehended as the “on-demand” water heating systems, and they will heat the water when demanded. This makes it more energy-efficient and frequently provides warm water.
- Condensing Water Heating Units: The condensing water heaters can use and capture the heat from the exhaust gasses. In return, it will improve efficiency.
- Solar Water Heating Units: These kinds of water heating systems take energy from the sun. By using these units, you can lessen the electricity bills even if they rely heavily on the availability of sunlight and are packed with much higher upfront expenses.
Importance of Renting Water Heaters
When it comes to rent water heater, this option is considered to be extremely important and here are some reasons behind it:
- Repairs and Servicing Included: At times, repair services and periodic maintenance are included in the water heater rental contract. This means it will save you from spending money when unwanted breakdowns take place.
- Offers You Solace: Since the rental organisation will bear the restoration and servicing work, you will be relieved to learn that the water heating systems are supervised by specialists.
- Less Upfront Fees: The biggest reason to rent water heater is because it will deliver you with lower initial expenditures. Rather than a one-time investment fee, as a renter, you will disburse a monthly payment for the unit.
- Flexibility: Renting water heating units will give you flexibility. When you wish to opt for a new unit or shift to a new home, the rental company will provide you with upgrade or transfer options without any monetary penalties.
Purchasing the Water Heaters
If you’re not planning on renting the water heating unit, you can simply buy one. Doing so will deliver you multiple advantages, such as:
- Long-Term Protection: The upfront expenditures for buying the water heater will be high, but this choice can be rather cost-effective in the long run. It’s because you don’t have to spend on rental payments every month.
- Customizing: When you aim to buy a water heating unit, you can pick the specifications and models based on your needs. This is something you will get when you rent the unit, as you have to use a model that the rental company provides you.
- The Ownership: Purchasing a water heating system means you get to own the unit instantly. In other words, you will have complete control over the system’s modifications that you wish to make and also the periodic servicing.
- Increasing the Home’s Value: Buying an energy-efficient and new water heating unit will surely add value to the residential property. In return, it will make the home a lot more appealing to all the home buyers who wish to sell the house.
Buying vs Renting: Cost Comparison
When you wish to compare the expenses between purchasing and rent water heater, it includes many important aspects, such as:
Factor 1: Monthly Charges
In Canada, the monthly charges for renting water heating will range between CAD20 and CAD50. This rental charge will depend heavily on the size and type of the unit you rented. During the span of 10 years, this price will become CAD2400 and CAD6000.
Factor 2: The Longevity
Water heating units will operate for 10 years to 15 years. If you lease the unit during this period, it might cost you more than purchasing one. This is particularly true when the unit doesn’t need any restorations or substitutes.
Factor 3: Upfront Expenses
When you rent the water heating system, you don’t have to pay the initial cost, even though buying the unit requires initial funding. Here is a small illustration to help you understand this properly: “The tankless water heating unit is priced between CAD1000 and CAD3000 and also comes with installation charges”.
Factor 4: Energy Efficiency
Water heating units, which are energy-efficient and completely new, can reduce utility bills and partly compensate for the high initial budget.
Factor 5: Repairs and Servicing
The cost related to unit servicing and repairs is included in the rental contract. Compared to that, homeowners in Canada who want to buy water heating systems have to pay for these expenses on their own, which will surely add up over time.
Buy or Rent Water Heater: Things to Consider When Deciding
Right before you decide to buy or rent water heater, you must take some aspects into consideration. These elements will have a tremendous influence on the decisions you make. Now, let’s find out what things you have to consider so that you can get the best option to fulfil the water heating requirements of your residence.
- The Duration of Use: When you want to reside at the present location for a short time, leasing the water heating unit will be an excellent option. This choice will give you flexibility and help you avoid all the issues of shifting the water heater. On the other hand, when you already have a home, you should buy a system because it will save you funds in the long run.
- Initial Expenses: When compared to renting the water heating unit, you have to pay a high upfront price if you plan to purchase one. You have to assess your monetary situation and budget correctly.
- Long-Term Cost: Leasing the water heating unit sounds like a cost-effective option, but the accumulated rental fees can go beyond the purchase price. You are advised to check the long-term monetary implications before doing anything.
- Obligations and Privilege: When you own a water heating system, you have to take care of its replacements, repairs, and servicing, even though leasing the unit will include maintenance coverage. You should think about it carefully if you’re preparing to bear all these burdens.
When you’re not certain whether to purchase or rent water heater, you should review all the aspects that can have an influence on the judgment you make.
Purchasing or Renting Water Heater: Regional Considerations
In the purchase or renting process, there are some regional considerations that play a massive part. Take a look at these pointers:
- Water Heater Providers: Many Canadian regions have utility providers that have rental programs, which are equipped with extra benefits like “bundled solutions”. This can make water heating rentals a lot more appealing.
- Local Market: The availability and price of the purchase and rental water heating units will surely affect the decision you make. In many Canadian regions, competitive market prices have an impact on your buying/renting decision.
- Energy Expenses: The energy cost differs greatly by region. If you live in an area that has a much higher energy expense, you should opt for an energy-efficient water heating system. It will not only help you save up on funds but also make buying quite attractive.
- Rebates and Incentives: The government offers incentives on all energy-efficient machines, and this can impact your decision to purchase or lease. For example, rebates for buying energy-efficient systems will lower the initial expense.
- The Climate: There are many regions in Canada that are extremely cold, and in those places, the water heating units work a lot harder and also need frequent servicing. It will be an ideal option to lease these appliances as the servicing option is included in the contract.
Conclusion
Deciding whether to purchase or rent a water heater in Canada, requires careful consideration of factors like regional specifics, long-term plans, servicing and cots. If you opt for the renting option, you will be provided with maintenance convenience and less initial expenses.
However, purchasing the water heating unit will give you complete ownership of the system and also become a lot more cost-effective over time. You must assess the local market conditions, future plans and your monetary situation.
That way, you can make the correct decision that will match perfectly with your needs. Whether you’re planning to buy or rent, it’s crucial to opt for the best water heating system for your residence to increase your monetary well-being, efficiency, and comfort.
For expert advice, consider consulting with specialists at Smile HVAC, experts in installing, repairing and servicing for all your water heating needs across Canada, we can help you make the best decision.
