Skip to main content

Today, let’s dive into the topic of hot water tanks. Are you in the market for one? Have you been wondering whether it’s better to buy it outright or rent it? In this blog post, I’ll break down the financial aspects to help you make an informed decision.

The Benefits of Renting a Hot Water Tank:
When it comes to renting a hot water tank, there are a few advantages worth considering:

1. No Upfront Cost: Renting a hot water tank means you don’t have to worry about a large initial investment.

2. Servicing and Repairs: If anything goes wrong with the rented hot water tank, you won’t have to deal with the hassle and expenses of repairs or replacements. The responsibility lies with the rental company to ensure everything works smoothly.

3. Monthly Payments: Rental contracts for hot water tanks usually come with reasonable monthly payments. This option allows you to budget your expenses effectively.

The Financial Side:
Let’s now take a closer look at the numbers. Purchasing a hot water tank outright can range from as low as $500 to $1,500 or even $1,800-$1,900 for top-of-the-line models.

On the other hand, rental contracts can range from $20 to $50 per month. Let’s consider a mid-range example: $35 per month. In one year, you would have spent $420 on the rental. Within one to three years, you’ve likely already surpassed the cost of buying the hot water tank outright.

Long-Term Considerations:
While renting may seem enticing due to the lack of repair and maintenance worries, it’s important to understand the long-term implications.

Hot water tanks typically have a life expectancy of around 15 years or more. If you were to continue renting for the entire 15 years, the total cost would be $6,300 (15 years x $35 per month).

On the other hand, if you purchase a hot water tank for $1,200, you’ll have ample room for repairs or even buying a new one if needed. This way, you save a significant amount of money in the long run.

Final Thoughts:
Unless you anticipate moving within the next year or two, buying a hot water tank outright is generally the smarter financial choice. It allows you to save money, especially over the span of 15 years or more.

If you have any further questions or would like to add to the conversation, please feel free to reach out!

Still Have Questions? Send Us An Email

    Subscribe to our Monthly Newsletter

    This form uses Akismet to reduce spam. Learn how your data is processed.

    Joey Virgilio

    Joey Virgilio is a Real Estate Agent with the Toronto Livings Team at Sage Real Estate. Born and raised as a GTA native, his knowledge of the geography and market mixed with exceptional real estate services will leave you feeling nothing but confidence with your decision to hire him and the Toronto Livings Team.