Is Renting a Water Heater From Reliance or Enercare Actually a Scam? What the Contracts Really Say
Why This Question Keeps Coming Up
A lot of Ontario homeowners rent their water heater and never really think about it again — until they try to cancel, sell their house, or just add up what they've paid over the years. Two companies dominate the rental market here: Reliance Home Comfort and Enercare. Both are legitimate, licensed businesses. But "legitimate" and "structured to keep you renting as long as possible" aren't mutually exclusive, and the only way to know which one you're dealing with is to actually read the contract instead of the ad.
I pulled Reliance's current 120-month water heater rental agreement directly from their own website, and compared it with Enercare's public marketing language and a contract of theirs I could verify. Here's what's actually in the fine print.
What "Renting" Actually Means With Reliance's 120-Month Agreement
In the areas we serve, Reliance's standard water heater rental runs on a 120-month (10-year) agreement. The important detail most people miss: 120 months isn't how long the contract lasts — it's the earliest point you're allowed to cancel. The agreement itself is written for an "indefinite term," meaning it just keeps going past year 10 unless you act.
Reliance's own contract states plainly: "You agree that we are the owner of the water heater and that we are not transferring title to you." There's no year count, 10 or otherwise, where ownership switches to you automatically. The only way you ever own the unit is by exercising a buy-out and paying its "depreciated fair market retail value," calculated on a straight-line basis, plus anything else owing. Rent itself isn't flat, either — it climbs every January 1 by whichever is bigger: 3.5%, or the change in the Ontario Consumer Price Index.
Enercare's Side: "For Life" Sounds Different From What's Signed
Enercare's current marketing leans on open-ended language — "free repairs for the life of your unit," coverage "during the anticipated useful life of the equipment" — without putting a year number anywhere on the page. That phrasing makes it sound like there's no contract to think about at all.
But the actual signed agreements tell a more specific story. A current Enercare commercial water heater contract we reviewed sets a 120-month initial term that auto-renews month-to-month afterward, with a buy-out price calculated from the months remaining (or three times your current monthly rate once you're past the initial term). And real customers have felt the gap between the marketing and the paperwork: CTV News reported on an Etobicoke homeowner who paid roughly $4,144 in rent over eight years, then was quoted a $1,082 buy-out fee just to cancel — reduced by $250 only after he complained publicly. He said he had no idea a penalty applied at all.
The History Here Isn't New
This isn't the first time these rental structures have drawn scrutiny. In 2012, the Competition Bureau filed complaints against both Reliance and Direct Energy (Enercare's predecessor) over restrictive return policies and cancellation fees. Reliance settled its part in 2014, agreeing to pay a $5 million penalty and make cancellation easier for customers. It's worth knowing that history exists before you sign a decade-long agreement with either company.
Running the Actual Numbers
For a tankless water heater, the math is starker. Tankless rent averages $50/month + tax, rising about 3% a year — $56.50/month with HST in year 1, about $73.72/month by year 10, roughly $7,770 total over 10 years with HST, and still with no ownership unless a buy-out is paid on top.
Compare that to buying a tankless outright today: $2,900–$4,000 upfront — and it's yours from day one, no escalating rent, no buy-out math down the road.
So Is It a Scam?
"Scam" implies something illegal, and renting a water heater isn't that — it's a legal contract that a lot of people genuinely find convenient, especially if a breakdown-and-replace scenario with no upfront cost matters more to them than long-term cost. But the structure is built to favour the company that owns the equipment, not the person paying for it every month. If you're renting mainly because you don't want a surprise repair bill, a maintenance plan on a water heater you actually own usually covers that same risk for a lot less than a decade (or more) of rental payments.
We've been installing and servicing water heaters across the GTA, Hamilton, London, Kitchener-Waterloo, and Ottawa since 2012, with licensed, TSSA-certified technicians on every job, and we sell and finance water heaters outright rather than locking anyone into an indefinite rental.
Thinking About Switching?
If you want a straight answer on what buying out your current rental would actually cost versus just owning a new unit outright, call 1-888-705-7368 for a free quote. We'll walk through your numbers with you, no pressure either way. You can also see your options for owning a new water heater or look at financing if the upfront cost is the main thing holding you back. We serve homeowners across Toronto, Hamilton, Kitchener-Waterloo, and Ottawa.
FAQs
Q: Can I just stop paying and keep the water heater?
A: No. Both companies retain ownership until a buy-out is paid in full. Stopping payment without returning the unit or buying it out puts you in default and can trigger collection action.
Q: Does my rental end automatically after the 10-year term?
A: Not with Reliance's 120-month agreement — it's written as an indefinite term that continues after year 10 unless you actively cancel or buy out the unit.
Q: Is buying a water heater outright actually cheaper long-term?
A: In almost every case, yes. For a tankless, rent averaging $50/month + tax and rising about 3% a year works out to roughly $7,770 over 10 years with HST, before any buy-out — versus $2,900–$4,000 upfront to buy a tankless outright.