Hot Water Heaters

[Usedtobelarisa]

Where is the best place to get 6 new hot water tanks? How much should they cost? And is it possible to get out of a rental contract with Relience? Thanks!!

 

[Thomas Beyer]

As a landlord you should not rent what is used a lot, i.e. the roof, the carpet, the hot water tank, your TV or your shoes.



Rent only what you use little, say a vacation condo, or a tuxedo, or a power washer.



Rona or HomeDepot sells them, or phone any plumber. Since you will buy 6 you will likely get a decent deal on item plus installation and removal of old ones.

 

[Usedtobelarisa]

Thank You Thomas!

 

[3canctheayr]

You can get out of a rental situation with Reliance and you can even do it without paying them anything, but they won't make it easy for you.

They will try to charge you a removal fee of about $100-150(iirc), to come get their own units. They will also try to charge you an account closure fee of $40-50.

You get nothing for this money if you give it to them. They will threaten you with all kinds of toothless nonsense if you don't pay these charges.



Have the old tanks disconnected by a tradesperson and your new ones installed, then tell Reliance to come pick up their stuff. They will tell you it's your problem and to pay them to remove the tanks. Just refuse to pay them and tell them you will store the tank for free for 30 days(or whatever time works for you). After that you will charge them $50 a month for storage. They will complain and threaten you, but they will send someone by the end of the 30 days to get their own tank.



As far as replacement tanks go, do you need six separate tanks for 6 separate buildings, or are there more than one in each building? If you can consolidate them, I'd look at buying 2-3 high efficiency GSW condensing gas water heaters to replace the 6 standard units, if you can consolidate them. The High effic. Ones cost more up front but save a lot in gas costs. They're 90% efficient compared to 70-75 for regular ones. They also have faster recovery times. A 50 gal one will heat to 140 degrees from cold startup in 10 minutes.

A 50 gal one will easily supply hot water to 2-4 units depending on unit makeup; 2- 2-3bedroom, or 3-4 singles.

 

[invst4profit]

If your tenants are paying seperatly for there utilities don't combine the hot water. You do not need to concern yourself with savings if the tenants pay the costs.

 

[Usedtobelarisa]

Thank you for his great advice!! These are 6 separate townhouse style units in a sixplex, so I cant consolidate them. They are also the ventless system which is supposed to be more efficient but costs more up front. Relience is offering to have me buy out the units that are currently there but the prices sound high to me. where is a good place to price these types of ventless units

 

[3canctheayr]

If they're from Reliance, chances are they are basic power vent 33, or 40 gallon gas water heaters. (no such thing as a 'ventless' gas heater, The Reliance person you are talking to is likely using the wrong terminology)



If they are what I think they are, you can buy pretty much identical units at Home Depot for about $6-700ea, with a 10-12 year warranty.



How old are the units? How much is Reliance asking to buy them out?



If they aren't that old & the price is cheap enough, it may be more cost effective to buy them out. You will likely have to pay tradespeople about $600-800 to switch out the current ones.

 

[Usedtobelarisa]

I can buy them out for $630-1350. The oldest unit I have is 2003. So the $630 unit would be over 10 years old. Thank you again 3canctheayr!!

 

[3canctheayr]

Yep, go buy a bunch of new ones, you should be able to get a deal by buying 6 at once. Give Reliance the ole heave-ho......



They will try like crazy to make you pay a bunch of made up charges to end the rental arrangement. I'd avoid that. They will even threaten you with collections, black mark on your credit, etc. Big deal. None of it has any teeth.

What you save on not paying their 'charges' will pay for all of your install costs on the new ones.

 

[Usedtobelarisa]

Thank you 3canctheayr! I will start shopping for the new tanks this week, though I am nervous about dealing with Reliance. I do have good credit and would love to keep it that way but I will call them as soon as I find new water heaters. Your advice is greatly appreciated!!

 

[3canctheayr]

They won't be able to ruin your credit, although they might suggest they can. If you have really good credit, it's pretty hard for one company to do any meaningful damage to it especially if it's an issue in dispute.

They tried to send a collection agency after me 2 times because I wouldn't pay them to remove their own stuff from my house. The collection agency tried all kinds of tactics, each of which failed because I'm not intimidated by them. They finally gave up when I reminded them the charge is in dispute.

Nothing was ever filed on my credit reports.

 

[ShannonMurree]

Reliance is horrible and based on an industry pro I know - the products provided are overpriced for the quality of product. When people "rent" the "buy out" contracts are ridiculous. Get a qualified HVAC company and see if you can buy at a discount rate. Not sure where you are located but get referrals. I know people in Simcoe County Area in Ontario

 

[Usedtobelarisa]

The property is in Brantford Ontario, if you know someone in those parts I would appreciate a refferal. Thank you 3canctheayr and Shannon, I am happy to know there is a way out of these rental fees.

 

[3canctheayr]

A quick google search should bring up a number of credible plumbing contractors in Brantford. I'm not too far away, over near Stratford, but a don't have anyone to recommend in Brantford.

 

[Usedtobelarisa]

I often get good people and services from Hamilton which is not too far.

 

[eddyb1978]

If you have the capital to buy the 6 rather than renting them, it would be more advisable.



The 6 should hover around +/- 9K supply/install.



This way you would eliminate the rental fees as expenses. Assume you were paying $150/month or $1800/year.... if +/- $1800 makes into your bottom line now ( Net Operating Income- NOI), at a Cap rate of 6%, you have effectively raised your building value by 30K! (1800/Cap rate of 6% )



I do the above on all the properties i buy to drive forced appreciation.



Cheers,



--

Eddy Boudiwan

President

Real Estate Rangers & Taft Forward Management Joint Venture

ackground-color: white;">250 Davisville Ave, Toronto, ON M4S 1H2, Canada



Email: [email protected]

Cel: 647-218-7925 Fax : 416-482-8010



Over 1400 Apartments under management and growing.



Fully structured & managed Real Estate Investments. Canada/USA

www.realestaterangers.ca www.taft-forward.com