I am working on a building legal basement suite in Edmonton, and am fortunate to have some good tradesmen on my team. Discussing costs & potential savings with my HVAC & plumbing crews, they brought up the idea of leasing mechanical equipment (furnaces, hot water systems, etc.) instead of purchasing them up front. I've heard that leasing hot water tanks is quite common in Ontario, and I am curious what other member's experiences & opinions are on this. This project is intended to be a long term holding property, so needing to pay out a contract at the time of sale is not a concern for us. The furnaces are already ordered, but we are discussing options for hot water.... Using this lease program, the total costs are ~ 5% cheaper than if we purchase the equipment with cash today, and they spread your payment out over 84 months. Looking at our monthly costs, the extra $30ish/month should have minimal effect on cash-flow. As part of this leasing plan they include the initial installation as well as any servicing/flush/maintenance etc. once per year - completed by a journeyman as part of the preventative maintenance. And if there are ever any issues, they include service calls as part of the 'warranty'. This sounds appealing as it will reduce our maintenance costs, and we can have the tenants contact the plumber directly if there's a leak or no hot water. This should also save us time & $$. Are other investors familiar with this type of lease program? If so, would you suggest looking into it, or do a traditional purchase and forget about the lease option? My understanding is that the monthly leasing costs are considered as a business expenses, and are thus tax deductible. Any insights on this? And lastly...with the idea of an annual maintenance included as well as service call, we are considering going to the tank-less on demand system. With the current government rebate ($1000), the tank-less system is actually cheaper than a 50 gal. tank. Im hesitant to go tank-less because Ive heard maintenance on these is tougher...but, if maintenance is included, should this be the way to go? Thanks in advance, your thoughts, insights & opinions are appreciated!