Quick answer
Your water heater rental fee keeps going up because the rental agreement lets the company raise the rate, usually once a year, for as long as the tank is in your house. A rented tank at $25–$45 a month adds up to $4,500–$8,000 over 15 years, against $1,500–$3,000 to own the same gas tank installed. The ways out are a buyout, a return or a renegotiation.
Your water heater rental fee keeps going up because the contract is built to do that. Rental agreements from Reliance and Enercare include a clause that allows the rate to be increased, typically once a year, and nothing in the agreement brings it back down as the tank ages. A tank installed 12 years ago has been paid for several times over and still bills at this year's rate. The fix is not a complaint call; it is ending or renegotiating the contract.
Where the annual increase clause is, and how to read it
Look in the terms and conditions for the section on rental charges or changes to rates. It sets out how often the rate can change, how notice is given and whether there is a cap. Notice usually arrives as a message printed on a bill ahead of the new rate, which is why most people never see it. The clause differs between agreement versions, so do not rely on a neighbour's contract or on a percentage you read online.
If you inherited the rental with the house, you may never have seen the agreement at all. Call the number on the tank's sticker and ask for four things in writing: a copy of the terms that apply to your account, the installation date of the tank, the current monthly rate and the buyout figure. Every decision below rests on those four facts.
Other reasons the rental charge jumped
- The tank was replaced: a new rental tank comes in at the current rate for that model, and it restarts the buyout schedule.
- The type changed: a power-vent or tankless rental is priced above a conventional tank.
- The billing period changed: a quarterly bill and a monthly bill look very different for the same rate.
- Tax and add-ons: HST applies to the rental, and protection plans sold alongside it show up on the same statement.
How to see what you have paid so far
Take the monthly charge from the Enbridge Gas bill or the rental company's own statement, multiply it by 12, then by the number of years the tank has been there. Because the rate was lower in earlier years, the true total is a little under that figure, but it is close enough to decide with. Then set it beside what the same equipment costs to own:
- Renting: $25–$45 a month, which comes to roughly $4,500–$8,000 over a 15-year tank life.
- Owning: $1,500–$3,000 installed for a quality gas tank, or $1,200–$2,500 for a straight tank-for-tank swap.
- Repairs on an owned tank, when they come up: $150–$800.
On those numbers an owned tank pays for itself in roughly three to five years, and everything after that is money the rental would have kept taking. Renting versus buying a water heater sets out the full comparison, and prices for other equipment are on the pricing page.
Three ways out of the rental escalator
- Buy out the existing tank: you pay the company's buyout figure and the tank stays where it is. It is worth doing only on a young tank, since you are buying used equipment; how the buyout is calculated explains the schedule.
- Return it and install an owned tank: the company issues a return authorisation, a licensed technician disconnects the rental, the new tank goes in and the old one goes back. This is the usual route for a tank past 10 years.
- Renegotiate on a replacement tank: when the rental tank is due to be replaced, the company would sooner keep the account than lose it. Ask for the rate, the increase terms and the buyout schedule in writing before agreeing, because a new rental tank starts the clock again.
A simple rule: past 10 years old, return and replace; under 5 years old, get the buyout figure and compare it with the price of a new owned tank; in between, ask for both numbers. If someone comes to the door offering to lower your rental rate, decline. Ontario banned unsolicited door-to-door sales of water heaters in 2018, and rental companies do not renegotiate on the doorstep.
ZK Mechanical installs owned gas, power-vent and tankless water heaters across Halton, Hamilton and Peel and gives the price in writing before the rental is touched. Water heater rental buyout and replacement explains what to ask the provider first, and the water heater answers hub covers Reliance and Enercare separately. Call (647) 801-1252 or send us your latest rental bill and we will put the two costs side by side.