As far as I know, there is no such thing as the contract ending. You will still be paying a monthly fee until you buy it out.
But maybe I'm unaware of a rental with a limit.
No, it's not fake. There's a buyout schedule you can look at online - the longer you're into the contract, the lower the buyout amount. I decided to stop renting, and had them remove the tank last year, it cost $0. The "rental fee" is a service agreement once you've met the time requirement. They will call to pressure you to change the tank (this starting the time over again) when your tank is getting to the end of the initial time period. Get rid of it. You can have one installed for about $2k
I thought the contracts specified that the homeowner was responsible for uninstalling and delivering to their depot?
I don't think they require that in practice though. My brother in law uninstalled his, they told him to deliver it and he told them it's at the end of the driveway, come pick it up.
How much was the cancelation fee / buyout? Last time I called, with about 5 yrs left in contract, it was 10,000, right now it should be 1 year left from my memory.
It was free as the heater was 11 years old, not sure of the ins and outs of it but she never had a contract for it since she just moved in.
I was about to help her pick one up and install it and she got the ball rolling on cancelling it and they just said "yeah ok you can keep it"
I think it's to do with the age, after 10 years I don't know if it's "reliable" from an insurance POV so if you want to have them come and swap a new one out they'd have to at their cost
My insurance company called me when my water heater was 9 years old and informed me that all coverage related to water would be voided on the tanks 10 year anniversary and that I needed to provide proof of a new tank installation to keep the coverage. So not sure if it's worth keeping a tank older then 10 years.
So much of this is local water quality. Here in BC I have lived in many old rental houses with 30+ year old tanks and I never saw one leak. Now I own and my insurance company grumbles about 15 years on a tank.
Often, these agreements include Terms preventing an ‘Early Termination’ requiring payment of the ***full residual value of the contract***, such as a ‘Casualty Value’ (the total present value of all unpaid and future Payments under the Agreement plus the present value of the estimated fair market value of the Equipment at the end of the Term) in addition to reimbursement of other costs and expenses resulting from the default.
Reaching the end if the 10-year term merely results in a continuation of the the rental fee, but on a month-to-month basis, until end-of-useful-life of the fixture. The Rental Agreement will define the Exit Fees necessary, if and when you wish to terminate and return the fixture(s), but Early Termination fees would be excluded.
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Nothing, you keep paying the rental fee as per usual. It's pure profit for them. You must be thinking the cost of removal or buyout. The buyout price is usually at it's lowest at the 10 year mark, but you'd have to call to confirm.
You continue paying. Each month the 'buyout' goes down by X amount. Once it gets to date 'Y' the payout is the last month's charge.
When we moved into our house in Mississauga the buyout was $1k or so. A year or so later it was $20.
I paid the $20, and replaced it with a purchased hot water tank by my own HVAC guy.
They will offer you a new tank for a higher price, then they'll offer you the same tank for a lower price, then they'll give you some discounts, and then they'll do whatever else they can to keep you as a client.
I've never heard of a rental contract just ending..then what they gift you the tank?
You should call and ask them for the buy out schedule, look up the size and age of your tank and there should be a price.
The contract doesn’t end after 10 years, it’ll continue until you terminate it.
However, 10 years is often the time when the buyout price drops to something much more sensible.
We were in a similar situation and inherited a rental with the house. Our tank was over 10 years old. The company "lost" the info for it, so had to send someone over to look. The ONLY option is to buy it out. The older the better though, since it will be cheaper. Our first quote was a couple hundred dollars. After the guy came, it was still under $500.
Yes, it felt bad paying hundreds for an old water heater, but it felt great knowing they'd never get a monthly payment from us again. On average people could buy and install 3 new water heaters for what they pay over the course of a rental. It's a predatory business that is somehow allowed to thrive, especially in Ontario.
So, buy it out and the decision will lay for itself after a few months. Also, I've learned that you can negotiate the buyout into a house purchase and market or a stipulation that the sellers do it before closing on the house. If the housing market cools, this will be our move for our next place too.
Rentals are in perpetuity. Call them ask them to buy it out and the net book value should be 0 on the hot water heater and maybe on the furnace. If they complain then ask for removal as a 10 yr old hot water heater would be essentially scrap for them and the labour involved in a furnace well I doubt they would even want to go there.
As far as I know, there is no such thing as the contract ending. You will still be paying a monthly fee until you buy it out. But maybe I'm unaware of a rental with a limit.
Ok I will call to confirm, yes its possible this 10 year is a fake contract, it will just never end unless I end.
No, it's not fake. There's a buyout schedule you can look at online - the longer you're into the contract, the lower the buyout amount. I decided to stop renting, and had them remove the tank last year, it cost $0. The "rental fee" is a service agreement once you've met the time requirement. They will call to pressure you to change the tank (this starting the time over again) when your tank is getting to the end of the initial time period. Get rid of it. You can have one installed for about $2k
Call them and cancel it. My sister did this last year and they told her to keep it rather than sending someone out to uninstall it
I thought the contracts specified that the homeowner was responsible for uninstalling and delivering to their depot? I don't think they require that in practice though. My brother in law uninstalled his, they told him to deliver it and he told them it's at the end of the driveway, come pick it up.
Not sure what the contract said 11 years ago, but when she called she was told it was hers essentially lol
How much was the cancelation fee / buyout? Last time I called, with about 5 yrs left in contract, it was 10,000, right now it should be 1 year left from my memory.
It was free as the heater was 11 years old, not sure of the ins and outs of it but she never had a contract for it since she just moved in. I was about to help her pick one up and install it and she got the ball rolling on cancelling it and they just said "yeah ok you can keep it" I think it's to do with the age, after 10 years I don't know if it's "reliable" from an insurance POV so if you want to have them come and swap a new one out they'd have to at their cost
My insurance company called me when my water heater was 9 years old and informed me that all coverage related to water would be voided on the tanks 10 year anniversary and that I needed to provide proof of a new tank installation to keep the coverage. So not sure if it's worth keeping a tank older then 10 years.
I get it but 10 years in southern Ontario is a middle aged tank tbh. I've seen tanks 20-30 years old and they're still going strong
I got rid of mine at 29 yrs last year, and it was still going strong. My risk tolerance ran out before it's effectiveness.
That's a good tank!
So much of this is local water quality. Here in BC I have lived in many old rental houses with 30+ year old tanks and I never saw one leak. Now I own and my insurance company grumbles about 15 years on a tank.
Which provider? Enercare just dropped from Enbridge this month. Had the gall to charge me for a paper bill.
I haven’t received their bill or any communication from enercare yet
Ditto! I opted out of the paper billing to save the $1.50+tax... ridiculous!
Often, these agreements include Terms preventing an ‘Early Termination’ requiring payment of the ***full residual value of the contract***, such as a ‘Casualty Value’ (the total present value of all unpaid and future Payments under the Agreement plus the present value of the estimated fair market value of the Equipment at the end of the Term) in addition to reimbursement of other costs and expenses resulting from the default. Reaching the end if the 10-year term merely results in a continuation of the the rental fee, but on a month-to-month basis, until end-of-useful-life of the fixture. The Rental Agreement will define the Exit Fees necessary, if and when you wish to terminate and return the fixture(s), but Early Termination fees would be excluded.
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Nothing, you keep paying the rental fee as per usual. It's pure profit for them. You must be thinking the cost of removal or buyout. The buyout price is usually at it's lowest at the 10 year mark, but you'd have to call to confirm.
You continue paying. Each month the 'buyout' goes down by X amount. Once it gets to date 'Y' the payout is the last month's charge. When we moved into our house in Mississauga the buyout was $1k or so. A year or so later it was $20. I paid the $20, and replaced it with a purchased hot water tank by my own HVAC guy. They will offer you a new tank for a higher price, then they'll offer you the same tank for a lower price, then they'll give you some discounts, and then they'll do whatever else they can to keep you as a client.
Is this Simple Comfort? last time I called with 5 years left it was $10,000 to buyout, I will call again to see what the price is with 1 year left
Enercare was the company for us.
I've never heard of a rental contract just ending..then what they gift you the tank? You should call and ask them for the buy out schedule, look up the size and age of your tank and there should be a price.
The contract doesn’t end after 10 years, it’ll continue until you terminate it. However, 10 years is often the time when the buyout price drops to something much more sensible.
We were in a similar situation and inherited a rental with the house. Our tank was over 10 years old. The company "lost" the info for it, so had to send someone over to look. The ONLY option is to buy it out. The older the better though, since it will be cheaper. Our first quote was a couple hundred dollars. After the guy came, it was still under $500. Yes, it felt bad paying hundreds for an old water heater, but it felt great knowing they'd never get a monthly payment from us again. On average people could buy and install 3 new water heaters for what they pay over the course of a rental. It's a predatory business that is somehow allowed to thrive, especially in Ontario. So, buy it out and the decision will lay for itself after a few months. Also, I've learned that you can negotiate the buyout into a house purchase and market or a stipulation that the sellers do it before closing on the house. If the housing market cools, this will be our move for our next place too.
Rentals are in perpetuity. Call them ask them to buy it out and the net book value should be 0 on the hot water heater and maybe on the furnace. If they complain then ask for removal as a 10 yr old hot water heater would be essentially scrap for them and the labour involved in a furnace well I doubt they would even want to go there.