Hot Water Tank: Owned? Leased? Rented? What!!!!

Avoid extra costs and headaches, by asking, who owns the hot water tank?

Did you know you can own, rent or lease a hot water tank, furnace, or air conditioner?

Lots of homeowners save on upfront costs by renting a hot water tank, furnace or air conditioner in their home. There are multiple companies that will happily offer you a small monthly payment in exchange for installing their product into your home and paying a manageable monthly fee. For a hot water tank rental, you expect to pay anywhere from $15 to about $40, depending. For a furnace or air conditioner, anywhere from $40-$65 per month.

 You’ve found the perfect house! But, do you know who owns the hot water tank?

You’ve found the perfect house! But, do you know who owns the hot water tank?

What are the benefits of renting a hot water tank or furnace or A/C unit?

The benefits include no upfront costs or having to spend $3000 - $5000 or more on the purchase of a new unit. In addition, most contracts will also include maintenance so if you have any problem, the company you rented from will come in and fix it or replace it, usually for free. And haul away the damaged or replaced item. Which is great, as you can’t put these items out for regular garbage pick-up.

Are renting or leasing the same thing?

Buyer Beware! Leasing and renting are NOT the same thing! Read the fine print. Especially when you are buying a house or even a condo, you absolutely should know if the unit is rented, leased or owned. Many times, a “lease” is a lease-to-own. Meaning you are actually doing a payment plan for the unit, with interest, until you pay it off. This often times will include hundreds in interest charges. And when you are selling, you have to read your contract to know if that lease is transferable, or if it is not, then the seller may be liable to purchase the hot water tank outright. And that, could mean an outlay of thousands of dollars, if you are early in your contract. If you want your buyer to assume it, it has to be clear in your Agreement of Purchase and Sale. And don’t forget to let your lawyer know in case there is any reconciliation needed.

Read the fine print! Whether you are buying or selling a house.

Know what you are getting into. Ask your real estate professional if you are unsure as a buyer. Make sure you ask them for a copy of the contract and read it or give it to your lawyer. Rentals often have big tags on them to denote that it is a rental plus the name of the rental company and a phone number. Snap a photo of it or write it down, if you are a buyer interested in the house, call and ask questions! If you are the seller, make sure it is clear in your listing or in your Schedule that gets included in the Agreement of Purchase and Sale. You don’t want to create any problems later with your closing.

It’s Your choice and preference, renting or leasing or owning a hot water tank!

Everyone has a preference if they would rather rent, lease, or own their hot water tank, furnace, or air conditioner. Make sure you know what your contract says if you are selling to avoid any issues on closing. And as a buyer, ask those questions up front. Read the contract, know exactly what you are getting into before you buy.

Want more information about the impact of leasing, renting, or buying on selling price? Or any other real estate concerns? Contact Rayissa Palmer at 416-400-0805 or email rayissa@homes4toronto.com . You can also leave a comment below. We look forward to hearing from you!