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Heating · RentalsFurnace & AC Rental Buyout
A furnace and AC rental buyout means paying the rental company the amount on your contract's buyout schedule so the monthly charges stop. After that you either keep the unit as your own or have it removed and replaced with equipment you own. The decision rule: buy out and keep a unit under about eight years old when the buyout is well below the price of a new one; replace when the unit is past 12 years or the buyout approaches the $4,500–$7,500 a new owned furnace costs installed.
Ontario furnace and air conditioner rentals from Enercare, Reliance and smaller firms share the same structure. You pay a monthly rate that rises every year by an amount written into the contract, and repairs are included while you rent. The commitment is long, and leaving early means paying the buyout figure for that year. The contract also sets what happens to the equipment afterwards: you keep it, or the company removes it and may charge a fee to do so.
Until 2024 many of these contracts were backed by a notice of security interest registered on the title of the house, the entry homeowners call a lien. Ontario's Homeowner Protection Act, 2024 banned those notices for consumer goods such as furnaces, air conditioners and water heaters, and deemed the existing ones expired. That removed a lever some companies used when a house was being sold or refinanced. It did not cancel the contract: you still owe what the agreement says, and a lawyer may still need to have an expired notice deleted from the register, as covered in removing an HVAC lien from title in Ontario.
The comparison turns on two numbers: the age of the equipment and the buyout on the schedule. Ask the rental company for the current buyout in writing; only the account holder can. Then we read the serial number for the true age, check the condition and the quality of the install, and set the buyout beside a written quote for owned equipment: $4,500–$7,500 for a high-efficiency furnace, or $7,500–$11,500 for a furnace and AC replaced together. Paying new-furnace money to own a ten-year-old builder-grade furnace is the outcome to avoid.
We are a contractor, not a party to your contract, so we cannot negotiate it or give legal advice. What we do is the technical half: assess the rented unit, price the alternative, and if you replace, disconnect the rental equipment and set it aside for return the way your contract requires. Water heaters follow different arithmetic and have their own page, water heater rental buyout. For the steps of ending a contract, see how to get out of a furnace rental contract in Ontario.
Look at a rental buyout when
- The monthly rental has climbed every year and you have never seen the buyout schedule
- You are selling or refinancing and the lawyer has asked about rented equipment
- You are buying a house and being asked to assume a furnace or AC rental
- The rented unit is past ten years old and you are still paying the full rate
- You want a heat pump or a different system and the rental contract stands in the way
How it works
Call the rental company as the account holder and ask for the current buyout amount, the removal or return terms and any fees, in writing. Send it to us with the contract if you have it.
We date the equipment from its serial number, check its condition and installation, and write a quote for owned equipment sized by heat-loss calculation. You see both paths with their real totals.
If keeping it is the better deal, you pay the buyout and we can take over servicing. If replacing, we install the new system, disconnect the rented unit and prepare it for return or pickup according to the contract.
Common questions
Is a furnace rental ever the better deal?
For some households, yes: no upfront cost and repairs included can be worth paying for if cash is tight. Over the full life of the equipment, the rising monthly rate usually adds up to well more than buying, with or without financing. The longer comparison is in should I rent or buy a furnace in Ontario.
Did Ontario cancel furnace rental contracts in 2024?
No. The Homeowner Protection Act, 2024 stopped companies from registering notices of security interest for consumer goods on land titles and deemed existing ones expired. The rental agreement, and whatever you owe under it, was not cancelled. Ontario had already banned unsolicited door-to-door sales of furnaces, air conditioners and water heaters in 2018. If you believe a contract was sold unfairly, that is a question for a lawyer or Consumer Protection Ontario.
What happens to the rental when I sell my house?
Either the buyer agrees to assume the contract, or you buy it out before closing. Many buyers ask for the buyout, so get the figure early instead of during the last week before closing. If the equipment is old, replacing it with a system the house owns outright gives the buyer nothing to negotiate over.
If I buy out the unit, who repairs it afterwards?
You do, as the owner. Ask the rental company in writing whether any manufacturer's parts warranty remains and whether it transfers to you, because that varies by company and brand. Once the unit is yours, any licensed contractor can service it. We repair and maintain bought-out furnaces and air conditioners at the same rates as any other equipment.
Can I replace a rented furnace with a heat pump?
Yes. Ending the rental and installing a heat pump are separate transactions: the buyout settles the contract, and the new system is quoted on its own. A 3-ton cold-climate heat pump installs for $9,500–$15,000 before rebates. Program rules change, so confirm the current rebate before counting on an amount, and ask us for a written quote.