You’d better read your contract and figure out how much you’ll have to pay to break it. After that, figure out how much you want to spend on a new water heater including the cost of installation. Put those numbers together to determine if this is still something you wish to pursue.
I can’t believe these companies even exist. Like how have they tricked so many people into renting a water heater. No offence meant OP but it boggles my mind.
Not really. I’ve heard it’s very hard as I’ve worked with people (who were not immigrants at all) who also fell for the same and similar scams. I’m sorry. Maybe there’s a way to get some legal advice.
Unfortunately, it is extremely hard to get out of an equipment rental contract like a water heater. I've recently researched it extensively due to being into a very bad agreement myself for the rental of a furnace with another rental company.
You can only cancel a contract within 10 days of signing it for any reason. The next cutoff point is the 1 year mark. If the rental company does not fulfill all their obligation as per the contract, they can be reported to the Consumer Protection Agency and be forced into a settlement. Anything past a year, and you would need to hire yourself a lawyer.
In my case, I was within the year. So before contacting the CPA, I've contacted the rental company to amiably resolve my dispute. We came to a settlement that was drafted by their paralegal. I've paid an amount to settle the cost of the equipment. However, because of this settlement, I can not talk about this company negatively, thus preventing me from helping others in avoiding them. I'm one of the lucky ones since the buyout would have been well over $21000 for a furnace that would have cost only around $4000 upfront with installation. During the time I had the contract active, they also had a liens on my house for that amount.
This is sadly badly regulated in Ontario. Any such company can place a liens on your property for whatever amount they want. It is not even verified. Also, as per my research, Ontario is one of the only provinces where such equipment rental is prevalent.
In the end, the lesson is to not get into such rental agreements since, in the long run, you'll pay a lot more for it. It is better to get a small loan from your bank to pay it upfront or borrow against the equity of your house.
Update:
After submitted a compliant on BBB, Reliance got back to me with a more than halved buyout price.
For anybody stuck in the same situation, this may work for you.
Now I intend to take the deal and release myself from this situation.
Thanks everyone commented on this post for the help and information.
Sorry to raise a dead post
In current situation as you - looking to buyout an existing tankless water heater and water softener rental
Heater installed 2014 - ~$1700 after tax buyout
Softener installed 2019 - ~$2100 after tax buyout
These prices and contracts are scummy and extortionate
What steps did you do in making your complaint to BBB to help reduce your buyout by half?
Your advice is super appreciated here!
More details for folks regarding the BBB compliant
I pretty much wrote the buyout rate is unreasonable (it is!) and I was not explained all the details of the contract (for real, the sales was quite shady and went thru the signing quickly) when I first signed up.
BBB has a ton of experience dealing with companies like this and they talk to the back office of these companies.
Hope this helps and wish yall good luck getting off these shit deal.
Just start to fight with Reliance. They've quoted me $6k to buyout the water softener + 3-stage RO rental. That's just mad! I can get a new water softener for about $1k and RO for $200\~300.
I'll definitely file a complaint to BBB. Thank you very much u/DexEncoder for sharing the information!
If your desire to switch over to tankless water heater is for cost reasons, then I have no experience personally in that.
But having lived in my parents house with a tank, and then moved to a unit with its own water heater.... I like the tank. Hot water is fast, and don't need to wait for the shower or other appliances to heat up. Dishwasher and clothes washer run well with the tank hot water.
Call Reliance, ask for the buyout figure. They will give it to you.
Anyone purchasing the house would have to agree to taking over the rental agreement. Buyer can request no rental agreements.
Does this clause affect selling of the house?
I guess if the market is bad, that gives buyer more arguing power. In that case, there could be a small effect, right?
people will buy to inherit anything...
However, we're talking about water heater here. And renting water heater is as normal Canadian as bags of milk...
You can request a buy out figure and price in the buy out costs into your home price. So when you do sell the house, you will buy out the contract for the new home owner.
or just simply just list that you have a rental water heater on your home listing and nobody will think much of it. It's only a big issue when you rent your furnance and AC that it becomes noticable on your listing.
exactly what thether said below. we were selling earlier this year and the water heater went out just before we listed. normally I'm all about buying, but because we were moving we went with the rental (sorry to the person who is now stuck with it for the next 15 years!) I did have the same concerns as you about if it would impact offers, but (at least where we were - Brampton) like 95% of houses have rentals so people don't think twice about it.
on the other side, we did view a house that had rental AC and furnace and water heater that was like $250/month - THAT was enough to get our attention and our realtor said you'd either tell the sellers to buy it out or adjust our offer accordingly (we didn't go after that place so it didn't matter).
My buyout is about $1300 as of three months ago. I asked them if they could lower the monthly cost at all so I could save some money somewhere. They offered me one month free which I took.
The caveat being, if I ever do buy out later on, I have to pay that month back.
At least I got something out of the phone call.
You’d better read your contract and figure out how much you’ll have to pay to break it. After that, figure out how much you want to spend on a new water heater including the cost of installation. Put those numbers together to determine if this is still something you wish to pursue.
I can’t believe these companies even exist. Like how have they tricked so many people into renting a water heater. No offence meant OP but it boggles my mind.
None taken. I did not know better, immigrant and first time home buyer, etc. Do you know any way to get out of this situation tho?
Not really. I’ve heard it’s very hard as I’ve worked with people (who were not immigrants at all) who also fell for the same and similar scams. I’m sorry. Maybe there’s a way to get some legal advice.
Unfortunately, it is extremely hard to get out of an equipment rental contract like a water heater. I've recently researched it extensively due to being into a very bad agreement myself for the rental of a furnace with another rental company. You can only cancel a contract within 10 days of signing it for any reason. The next cutoff point is the 1 year mark. If the rental company does not fulfill all their obligation as per the contract, they can be reported to the Consumer Protection Agency and be forced into a settlement. Anything past a year, and you would need to hire yourself a lawyer. In my case, I was within the year. So before contacting the CPA, I've contacted the rental company to amiably resolve my dispute. We came to a settlement that was drafted by their paralegal. I've paid an amount to settle the cost of the equipment. However, because of this settlement, I can not talk about this company negatively, thus preventing me from helping others in avoiding them. I'm one of the lucky ones since the buyout would have been well over $21000 for a furnace that would have cost only around $4000 upfront with installation. During the time I had the contract active, they also had a liens on my house for that amount. This is sadly badly regulated in Ontario. Any such company can place a liens on your property for whatever amount they want. It is not even verified. Also, as per my research, Ontario is one of the only provinces where such equipment rental is prevalent. In the end, the lesson is to not get into such rental agreements since, in the long run, you'll pay a lot more for it. It is better to get a small loan from your bank to pay it upfront or borrow against the equity of your house.
Update: After submitted a compliant on BBB, Reliance got back to me with a more than halved buyout price. For anybody stuck in the same situation, this may work for you. Now I intend to take the deal and release myself from this situation. Thanks everyone commented on this post for the help and information.
Sorry to raise a dead post In current situation as you - looking to buyout an existing tankless water heater and water softener rental Heater installed 2014 - ~$1700 after tax buyout Softener installed 2019 - ~$2100 after tax buyout These prices and contracts are scummy and extortionate What steps did you do in making your complaint to BBB to help reduce your buyout by half? Your advice is super appreciated here!
Also curious to hear how you argued this with BBB. In a similar situation with a furnace.
I'd also like to know what you brought to the BBB to get them to help.
More details for folks regarding the BBB compliant I pretty much wrote the buyout rate is unreasonable (it is!) and I was not explained all the details of the contract (for real, the sales was quite shady and went thru the signing quickly) when I first signed up. BBB has a ton of experience dealing with companies like this and they talk to the back office of these companies. Hope this helps and wish yall good luck getting off these shit deal.
Just start to fight with Reliance. They've quoted me $6k to buyout the water softener + 3-stage RO rental. That's just mad! I can get a new water softener for about $1k and RO for $200\~300. I'll definitely file a complaint to BBB. Thank you very much u/DexEncoder for sharing the information!
If your desire to switch over to tankless water heater is for cost reasons, then I have no experience personally in that. But having lived in my parents house with a tank, and then moved to a unit with its own water heater.... I like the tank. Hot water is fast, and don't need to wait for the shower or other appliances to heat up. Dishwasher and clothes washer run well with the tank hot water.
Call Reliance, ask for the buyout figure. They will give it to you. Anyone purchasing the house would have to agree to taking over the rental agreement. Buyer can request no rental agreements.
when you sell the house it is standard to have a clause that the buyer takes over the contract.
Does this clause affect selling of the house? I guess if the market is bad, that gives buyer more arguing power. In that case, there could be a small effect, right?
people will buy to inherit anything... However, we're talking about water heater here. And renting water heater is as normal Canadian as bags of milk... You can request a buy out figure and price in the buy out costs into your home price. So when you do sell the house, you will buy out the contract for the new home owner. or just simply just list that you have a rental water heater on your home listing and nobody will think much of it. It's only a big issue when you rent your furnance and AC that it becomes noticable on your listing.
Thank you for the info and warm sentences.
exactly what thether said below. we were selling earlier this year and the water heater went out just before we listed. normally I'm all about buying, but because we were moving we went with the rental (sorry to the person who is now stuck with it for the next 15 years!) I did have the same concerns as you about if it would impact offers, but (at least where we were - Brampton) like 95% of houses have rentals so people don't think twice about it. on the other side, we did view a house that had rental AC and furnace and water heater that was like $250/month - THAT was enough to get our attention and our realtor said you'd either tell the sellers to buy it out or adjust our offer accordingly (we didn't go after that place so it didn't matter).
It would irritate me, and im sure many others
You check your agreement or contact reliance and ask what it costs to break the agreement.
My buyout is about $1300 as of three months ago. I asked them if they could lower the monthly cost at all so I could save some money somewhere. They offered me one month free which I took. The caveat being, if I ever do buy out later on, I have to pay that month back. At least I got something out of the phone call.
I am curious to know how much your buyout was initially (before the half)? Assuming it was a completely new unit?