‘It’s ridiculous’: Man must pay $1,000 penalty to cancel water heater rental

‘It’s ridiculous’: Man must pay $1,000 penalty to cancel water heater rental
‘It’s ridiculous’: Man must pay $1,000 penalty to cancel water heater rental

This article was translated from content from CTV News.

“I was shocked to learn that the penalty I had to pay was almost the cost of a brand new water heater,” James Alves of Etobicoke, Ont., told CTV News Toronto.

Mr. Alves, who is on a fixed income, was reviewing his bills when he decided to cancel his water heater rental contract. But he had no idea he would have to pay a penalty.

“I decided the monthly rent was costing me too much and figured after eight years I had paid enough in rental fees for the water heater,” Alves said.

Over the years, Mr. Alves paid approximately $4,144, including taxes, to rent a water heater from Enercare.

When he contacted Enercare to end his contract, he was told there was a buyout cancellation fee of $1,082, including taxes, which Mr Alves was surprised to have to pay.

“For a device that I could buy today for $1,200, they’ve already charged me enough in rental fees that I have to pay this cancellation fee. I find that ridiculous,” Alves said.

When Mr. Alves complained to Enercare, the company reduced the buyout price by $250.

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“We do not typically share details of customer accounts or interactions. However, we can confirm that our rental agreement includes the option for customers to purchase the equipment to end a contract,” an Enercare spokesperson told CTV News.

“In this case, and as Mr. Alves, who is a valued and long-standing customer, pointed out, a goodwill credit has already been applied to his account to reduce the purchase price.”

– Statement from an Enercare spokesperson

“Nevertheless, we always strive to ensure customer satisfaction and we have contacted Mr. Alves,” the spokesperson continued.

Water heaters are generally reliable, require little to no maintenance and last 15 years or more. While the majority of Canadian homeowners in many provinces purchase their water heaters, many people in Ontario continue to rent them.

Bill Adams, who runs Home Depot’s water heater division, says people who still rent a water heater might consider buying one instead.

“A lot of people, after renting, move into a house and continue to pay their monthly payment as if it were another monthly bill, but we have a lot of options when it comes to water heaters,” Adams said.

There are basic electric and natural gas models. Powered-vent and tankless water heater models cost more to purchase and install.

Adams says a standard electric water heater costs about $600 to buy and about the same to install, while a natural gas model costs a little more, about $800 to buy and install.

These water heaters have 40- to 80-gallon tanks and can come with different warranty periods, which Adams describes as a “good, better, best” line of protection, with prices varying on a case-by-case basis.

“For about $1,500 to $2,200, you’ll have your own water heater installed, and we’ll remove the old model and install the new one,” Adams said.

Mr. Alves stressed that in the future he would always own his water tank and would never rent one again.

“They didn’t spend any money on this tank, except to bring it to my house eight years ago. Now they want me to pay practically the cost of another water tank to buy their eight-year-old tank,” Alves said.

Some companies also try to get homeowners to lease their furnaces and air conditioners. While there is no upfront cost, you could end up paying three to four times more for the equipment over the life of the contract.

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