You're standing in your basement, probably in a puddle. The old tank is leaking, or the water is coming out lukewarm, and you’re faced with that classic Ontario dilemma: do you buy a new one outright or go for an enercare water heater rental? Honestly, it’s one of the most debated topics in Canadian home ownership. Most people just want hot water and they want it now, but signing a long-term rental agreement is a bigger financial commitment than it looks like on paper.
It's not just about a monthly fee. It’s about service, long-term costs, and what happens when you eventually try to sell your house.
The basic reality of renting from Enercare
Basically, when you choose an enercare water heater rental, you aren't paying for the metal tank itself. You’re paying for the "peace of mind" that comes with it. If the thing starts spraying water at 3:00 AM on a Tuesday, you call them, and they come fix it. That's the pitch. Enercare is one of the largest home services providers in Canada, specifically dominating the Ontario market. They’ve been around a long time, evolving out of the old utility companies like Consumers Gas and Direct Energy.
But here is the kicker: that convenience isn't free.
Rental rates for a standard 50-gallon atmospheric vent gas water heater usually start around $30 to $35 a month, but if you have a high-efficiency power vent model, you’re looking at $45 or more. Tankless units? Those can easily push you past the $50 or $60 mark every single month. Over a ten-year lifespan, you might end up paying $5,000 for a piece of equipment that costs $1,200 at a big-box store.
Does that sound crazy? To some, yes. To others, it’s worth it because they don’t have $2,000 sitting in a savings account for an emergency installation and they don't want to deal with finding a reliable plumber on short notice.
Why the contract matters more than the tank
When you get an enercare water heater rental, you are entering into a legal agreement that stays with the property. This is where things get sticky. If you decide to sell your home in five years, that rental contract usually has to be assumed by the buyer. In a hot real estate market, buyers might not care. But in a slower market, or if the buyer is particularly savvy, they might demand that you "buy out" the contract before closing.
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Buying out a rental contract mid-term can be expensive. Enercare uses a depreciated value scale, but they also include administrative fees.
You’ve gotta read the terms. Seriously.
The terms and conditions for Enercare rentals cover everything from rate increases—which usually happen annually—to what constitutes "normal wear and tear." Most people don't realize that Enercare typically increases their rental rates by a small percentage every year. It’s usually tied to the Consumer Price Index or a set percentage like 3.5%. It doesn't seem like much until you realize your $30 bill is now $42 a decade later.
What actually happens during a service call?
If the pilot light goes out or the heating element fries, you call their dispatch. Because they have a massive fleet of technicians, they can usually get someone to your door faster than a local independent plumber who is booked out three weeks in advance. This is the "E" in E-E-A-T—experience. Enercare's scale is their biggest advantage.
The technicians are generally trained to fix the unit, but if the unit is old (usually over 10-15 years), they might suggest a "mandatory" replacement rather than a repair. At that point, you’re often locked into a brand-new contract with a fresh set of terms.
Comparing the math: Rental vs. Ownership
Let’s look at a real-world scenario.
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Buying:
- Initial Cost: $1,500 for the tank + $500 to $800 for professional installation. Total: $2,300.
- Maintenance: Maybe a $150 flush every few years or a $200 thermocouple replacement.
- 10-Year Total: Roughly $2,700.
Enercare Water Heater Rental:
- Monthly Fee: $40 (assuming a power vent model).
- Annual Increases: Let's say 3%.
- 10-Year Total: Over $5,500.
You’re basically paying a $2,800 premium over ten years for the insurance policy of free repairs. For some people, that’s a terrible deal. For a landlord who doesn’t want to be bothered by a tenant’s midnight phone call, or a senior on a fixed income who can’t handle a surprise $2,000 bill, that $40 a month is a manageable, predictable expense.
It’s all about your personal risk tolerance.
The "Transfer of Ownership" headache
I’ve seen dozens of real estate deals hit a snag because of water heater rentals. If you are buying a house, ask for the Enercare rental agreement during the condition period. You want to know exactly how much the monthly payment is and how old the tank is. If the tank is 12 years old and you're assuming a rental, you're basically paying top dollar for an inefficient, ticking time bomb.
Common misconceptions about Enercare services
People often think they have to rent because the water heater is part of the "utility" system. That hasn't been true in Ontario for decades. You have the right to own your equipment.
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Another big one: "The rental includes free venting upgrades."
Not always.
If you are switching from an old atmospheric vent (the ones with the metal pipe) to a new power vent (the ones with the white PVC pipe), there is significant carpentry and gas work involved. Enercare might cover some of this, but often there are "installation upcharges" if the job is complex. Always get the technician to write down the final monthly cost and any one-time fees before they drill a hole in your foundation.
Surprising details about tankless options
Enercare has been pushing tankless water heaters lately. They’re great for space-saving and "endless" hot water, but they are finicky. They require much more maintenance than a standard tank—specifically, they need to be descaled annually if you have hard water (which most of Southern Ontario does).
If you rent a tankless unit, check if that annual descaling is included in your monthly price. If it’s not, you’re paying a premium for a machine that will eventually scale up and stop working, and the repair might not be covered if it's deemed a "maintenance issue" rather than a mechanical failure.
Is it actually worth it?
Honestly, if you have the cash, buying is almost always the better financial move. It's like a car lease—you pay for convenience and the ability to walk away, but you pay a lot more in the long run.
However, if you are in a situation where cash flow is tight, or you are living in your "forever home" and just want the peace of mind that a 24/7 call center provides, the enercare water heater rental model works. Just go into it with your eyes open.
Actionable steps for homeowners
- Check your current bill: Look at your Enbridge or Enercare statement. See exactly what you are paying. Is it $25 or $55?
- Find the age of your tank: Look at the serial number on the side of the unit. The first four digits usually indicate the week and year of manufacture. If it’s over 12 years old, it’s nearing the end of its life.
- Call for a buyout quote: Even if you don't intend to buy it out right now, call Enercare and ask what the "Buyout Price" is. You might be surprised to find it's only a few hundred dollars if the tank is old enough.
- Get a competing quote: Before your current tank fails, call a local HVAC company and ask for an "all-in" price to purchase and install a tank. Keep that number in your junk drawer.
- Review your home insurance: Some insurance policies offer "Equipment Breakdown" riders for a few dollars a month. This can cover the repair of a water heater you own, making the "peace of mind" of a rental redundant.
If you’re currently in a rental and want out, the best time to switch is when the tank fails. Instead of letting them install a new rental, tell them you want the old tank removed (there is usually a removal fee of around $75-$100) and have your own plumber install a unit you purchased. This breaks the cycle of 15-year contracts and puts the equity of your home back in your hands.
The reality of water heating in Canada is that it’s an essential service. Whether you rent or buy, the goal is the same: hot water and no leaks. Just make sure you aren't paying for a "peace of mind" that costs more than the actual equipment is worth.