Cost of hot water tank and where to buy it? interesting phenomenon..

[Nir]

Hi All,

There is a hot water tank in the property (close to Orillia, Ontario) rented for $20/month by morEnergy. morEnergy told me a new one costs around $2000. Is it really that expensive or can you get one for around $500. If it can be purchased for around $500 it is just unbelievable that they rent it for $20 a month as this is equivalent to 50% annual interest! {How are they allowed to do that?}

Thanks,
Neil

 

[SamEfford]

They are allowed to do that because people agree to pay it. As we all know, it is not cheaper to rent. That is why we do what we do.

 

[billf]

I was going to buy one for one of my rental properties last year in Ontario, but I wanted it installed.

You can get them for 600-800 at the home depot, but then it is 300-400 for installation plus they want to inforce new plumbing/safety codes when they get on site, like hot water equalizers, and a metal lining for your exhaust stack which runs up the cost to $1500+. When you consider you can rent one for $12/month with no up front cash, and this cost is usually included in the renters utilities cost. Renting is not a bad way to go.

P.S. Water heater prices vary buy the type of water source, hard water zones drive up the price. I have heard that some of the rental companies won`t even touch many areas due to complaints, mantenance costs etc.