Ontario is one of the only places in North America where renting a water heater is widespread. The practice was popularized decades ago by natural gas utilities and their affiliated companies — Enercare, Reliance Home Comfort, and Direct Energy being the most common — who marketed rental programs as a convenient, low-hassle option with no upfront cost.

For a homeowner who needed a working water heater immediately and didn't want to deal with installation, a rental agreement seemed reasonable. The problem is what happens over the years that follow. Monthly fees increase. Contracts auto-renew. And most renters have no idea how much they've paid — or how much they'll continue to pay if they do nothing.

Let's look at the actual numbers. Rental rates for tankless water heaters in Ontario typically range from $40 to $75 per month, depending on the provider and the model. That's before HST. And those rates are not fixed — most rental contracts include annual escalation clauses that increase your fee each year.

*Totals include 13% HST and assume a flat rate with no annual escalation. Real-world costs are typically higher due to built-in rate increases.

At the end of 20 years of renting, you own nothing. The unit belongs to the rental company. If it breaks, they repair it — but you've also been paying for that coverage through your monthly fee the entire time. And the unit you've been renting is almost certainly a lower-efficiency model than what you could own outright for a fraction of the total rental cost.

Most Ontario homeowners who are renting their water heater have never read the fine print of their rental agreement. Here's what those contracts typically contain — and why they're designed to keep you paying indefinitely.

Automatic Renewal Clauses

Most water heater rental agreements automatically renew at the end of their term — often annually — unless you actively cancel within a specific notice window (typically 30 to 60 days before the renewal date). If you miss that window, you're locked in for another year. Many homeowners have renewed their rental contracts for 10 or 15 years without ever intending to.

Annual Rate Escalation

Rental contracts routinely include clauses that allow the company to increase your monthly fee each year — often tied to an index like CPI or simply at their discretion. What starts at $45/month can reach $65 or $70/month within a decade without you making any decision to spend more. These increases are baked into the agreement you signed.

Early Termination and Buyout Fees

If you decide to cancel your rental agreement mid-term, you'll typically face an early termination fee. This can range from a few hundred dollars to over $1,000 depending on how far into the contract term you are and the specific company's policies. You may also be required to pay a buyout price to keep the unit, or schedule a return pickup for the equipment.

Real Estate Complications

A rented water heater is a liability — not an asset — when you sell your home. Ontario real estate disclosure forms require sellers to disclose rental equipment, and buyers can request that rentals be bought out before closing. This can create last-minute negotiations, delays, and unexpected costs at a stressful time. Owned equipment, by contrast, transfers with the home as part of the sale — no complications, no extra fees.

Let's put this into a concrete example for a typical GTA homeowner.

By Year 5, the homeowner in Scenario B has paid off their unit and owns it outright. From that point forward, they pay nothing in monthly fees while the Scenario A homeowner keeps writing cheques — indefinitely, with no end date and no asset to show for it.

The most common objection we hear to buying a tankless water heater is the upfront cost. That's exactly why we offer flexible financing with $0 down and 0% interest on approved credit — making ownership accessible for every Ontario household, regardless of budget.

Here's how it compares to renting when financed over a typical term:

In many cases, after rebates are applied, the financed monthly payment for a premium Rinnai or Navien tankless heater is comparable to or lower than the rental rate you're currently paying. And unlike renting, every payment builds toward something you'll own.

Call us at 1-888-675-5907 to get a financing quote for your home. We'll tell you the exact monthly payment, your rebate eligibility, and your total cost to own — before you commit to anything.

We believe in giving Ontario homeowners an honest picture — and in fairness, there are a small number of situations where renting may be the more practical short-term choice:

• Short-term occupancy: If you know you're moving within the next 1–2 years, paying to own an appliance you'll leave behind may not make financial sense. Though it's worth noting that an owned tankless heater can add value to your home sale.
• Immediate emergency with no financing available: If your water heater has failed today, you have no hot water, and you cannot qualify for financing at this moment, a rental agreement gets you running immediately. That said, call us first — we move quickly and our financing approval process is straightforward.
• Landlords with frequently-turning-over tenants: Some landlords prefer the maintenance-included rental model to avoid coordinating repairs between tenancies. Even here, ownership often pencils out better over a multi-year horizon.

For the vast majority of Ontario homeowners who plan to stay in their home for 3 or more years, owning is the smarter financial decision — full stop.

Already renting and ready to switch? Here's what you need to know — and what we handle on your behalf.

Step 1 — Know Who You're Renting From

The most common water heater rental companies in Ontario are Enercare, Reliance Home Comfort, and Direct Energy (now part of NRG). Check your gas bill or your rental agreement to confirm your provider. If you're not sure, we can help you figure it out.

Step 2 — Understand Your Contract Terms

Before cancelling, you'll want to know your contract expiry date, the notice period required for cancellation, any early termination fees, and whether there is a buyout option. We review this with you during your free consultation.

Step 3 — Let Constant Home Comfort Handle It

When you install your new tankless water heater with us, we manage the full cancellation process on your behalf — at no extra charge. This includes contacting your rental company, coordinating equipment pickup, and ensuring your contract is properly terminated so you don't receive additional billing. We've done this hundreds of times and know exactly how each major rental company's process works.

What About Early Termination Fees?

If you're mid-contract and facing an early termination fee, we'll advise you on the exact amount before you commit to switching. In most cases, the savings from owning a premium tankless unit — combined with rebates and lower energy bills — more than offset any cancellation fee within the first year or two. We'll run the numbers for your specific situation so you can make an informed decision.

Here's a general overview of what to expect when cancelling with the main Ontario rental providers. Always confirm current terms directly with your provider, as policies change.

Note: Constant Home Comfort handles all contact, coordination, and paperwork with your rental company on your behalf at no additional charge.

I've been renting for 10 years. Is it too late to switch?

It's never too late to stop the bleeding. If you've been renting at $55/month for 10 years, you've already paid over $7,400 — for a unit you don't own. Switching now means no more monthly rental fees from this point forward, a premium unit chosen to suit your household, and the opportunity to capture rebates that renters cannot access. The sooner you switch, the more you save.

Can I buy out my existing rental unit instead of getting a new one?

Some rental companies offer a buyout option, but the buyout price is often set high — and you'd be buying an older, lower-efficiency unit that may need servicing soon. In most cases, it makes more financial sense to cancel the rental, return the old unit, and install a new high-efficiency Rinnai or Navien tankless heater that qualifies for rebates and comes with a full manufacturer's warranty.

What if my rental agreement says I have to keep renting for another two years?

You may still be better off switching now. We'll calculate your specific early termination fee and compare it against the savings from owning — including rebates, lower energy bills, and the end of monthly rental payments. In most cases we've seen, homeowners still come out ahead within 12 to 18 months even after paying the cancellation fee.

Does a rented water heater affect my home's resale value?

Yes — and not in a positive way. Rental equipment must be disclosed on Ontario real estate listings and is classified as an encumbrance on the property. Buyers can and often do request that rental equipment be removed or bought out before closing. This can create delays, awkward negotiations, and additional costs at a time when you're already managing a complex transaction. Owned equipment transfers as part of the home — cleanly, with no complications.

I don't want to deal with repairs if I own. Who handles that?

We do. Constant Home Comfort offers an annual maintenance plan that covers descaling, inspection, and priority service — for a predictable annual fee that is a fraction of what you'd pay in rental charges. And if something breaks outside of a maintenance visit, our 24/7 repair service is available across all of Ontario. You get the responsiveness of a rental program without the indefinite monthly fee and without handing ownership of your equipment to someone else.

Switching from a rental to a owned tankless water heater is one of the highest-return decisions an Ontario homeowner can make. We handle every part of the process — from cancelling your rental contract and removing the old unit, to installing a premium Rinnai or Navien tankless heater and applying every rebate you qualify for — so the transition is completely seamless for you.

Call 1-888-675-5907 today for a free, no-obligation consultation. We'll review your current rental costs, calculate your savings, and give you a complete ownership quote — all in one call. Serving Toronto, the GTA, Hamilton, Ottawa, London, Waterloo, Barrie, and all of Ontario.