Water Heater Rental Contracts in Ontario
Thousands of Ontario households pay monthly for a tank whose contract they have never read. That is fine until the tank fails, or you want to switch.
- Plain steps you can follow before calling
- What to check, what to leave alone
- When the job needs a plumber
- Milton water, weather and housing in mind
- Licensed plumbing trade
- Booked around your day
- Price agreed before work
- Phone only, no forms
2 minute read
Written for Milton homeowners doing the first look themselves.
Have handy
- Flashlight and a bucket
- Rags or old towels
- Your main shut-off located
Stop and call when
A ceiling is dripping, a drain is pushing sewage back up, or you smell gas.
The short version
A large share of Ontario water heaters are rented, not owned. The rental company owns the tank, bills you monthly, and maintains or replaces it under the contract terms. If you want to replace a rented tank with one you own, or with a different rental, you usually need to deal with the current company first. Buyout and removal terms vary between companies and contracts, so read yours before anything is disconnected.
The routine, in order
- Confirm it is a rental. Look for a sticker on the tank with a company name, and check your utility or rental bills for a monthly water heater charge.
- Find the contract. If you bought the house with the rental in place, the contract may have transferred with it. Ask the company for a copy.
- Ask the right questions. What is the buyout amount today? Are there removal or termination fees? Does the company require their own staff to remove the tank? Is the rate scheduled to rise?
- Get it in writing. Ask for any buyout figure or return instructions by email or letter, not just over the phone.
- Plan the replacement. Decide what you want next: an owned tank, a tankless unit, or another rental. Our choosing a water heater pamphlet helps with that.
- Arrange the return. If the old tank goes back to the rental company, follow their process so the account closes properly.
Mistakes to avoid
- Agreeing to a doorstep rental before comparing anything. Door-to-door water heater sales have drawn consumer protection rules in Ontario for good reason.
- Assuming the rental company will replace the tank automatically. Some contracts cover replacement; others only cover repairs.
- Letting a plumber remove a rented tank before you have spoken to the company.
- Forgetting about the rental when selling your home. Buyers and lawyers will ask.
Ontario's consumer protection rules were tightened on doorstep selling of water heaters and some other home equipment. If someone shows up unannounced offering to replace your tank, you do not have to sign anything on the spot.
When to ring the shop
Call us once you know where you stand on the rental. We can install an owned tank, whether a gas replacement or an electric install, and we will tell you plainly what we find at the old one. If the tank is leaking now, shut the cold valve feeding the tank, turn off the gas or power to it, and call both us and the rental company.
Permits may apply to replacements; see our permits pamphlet for more.
Questions we get asked
Is buying out a rental tank possible?
Many contracts allow a buyout. The amount and process depend on your contract, so ask the rental company for written terms.
Who fixes a rented water heater?
Usually the rental company, under the contract. Check before calling anyone else, or you may pay for work they would have covered.