If your water heater is supplied by Reliance Home Comfort, HomeServe, Enercare, or another rental company, you're likely paying $30–$60 per month — $360–$720 per year — for a tank that the company owns. Over 10 years, that's $3,600–$7,200 for a piece of equipment worth $1,000–$1,500 to buy outright.
The good news: you can cancel. The process takes one phone call and some paperwork. Here's exactly how to do it in Ontario.
Step 1: Find Your Contract
Before you call, locate your rental agreement. It should show:
- The rental company name (Reliance, HomeServe, etc.)
- Monthly rental amount and what it includes
- Whether the contract auto-renews and when
- Early termination fees or buyout options
If you can't find your contract, check your gas bill — rental charges often appear there. You can also call your provider and ask for your contract details.
Step 2: Understand Your Options
When cancelling, you'll typically have three choices:
- Buyout the unit: Pay a lump sum to own the existing tank. Cost varies by age — newer tanks cost more to buy out.
- Return the tank: The company retrieves their unit, you arrange a replacement. This is the cleanest option.
- Transfer the contract: If you're selling your home, the rental agreement can transfer to the buyer (this is common and sometimes causes issues for sellers).
Step 3: Call and Cancel
Call your rental company directly. Here's what to say and do:
- Tell them you want to cancel your rental agreement
- Ask for the full buyout price and the return/removal process
- Get a cancellation confirmation number
- Ask them to send written confirmation by email
- Schedule their removal visit if returning the unit
Step 4: Get Your Replacement Water Heater
Once the rental unit is removed (or you've bought it out), you'll need a replacement. Your options:
- Conventional tank (owned): $1,200–$2,200 installed. Pays for itself in 2–4 years vs. renting.
- Tankless water heater: $3,000–$5,000 installed. Higher upfront cost, 15–20 year lifespan, lower operating cost, unlimited hot water.
- Heat pump water heater: Available rebates through Canada Greener Homes. More efficient than conventional gas or electric tanks.
Don't let the rental company pressure you into a new rental "deal." You're better off owning.
What About the Ontario Energy Board Rules?
The Ontario Energy Board (OEB) regulates door-to-door energy contract sales and has rules specifically about water heater rentals. Contracts signed at the door have a 10-day cooling-off period where you can cancel with no penalty. If you were signed up without proper disclosure, you may have additional cancellation rights — contact the OEB at 1-877-632-2727.
Real Numbers: Rent vs. Own
Let's say you're paying $40/month to rent a conventional gas tank water heater. Over 10 years:
- Total rental cost: $4,800
- Cost to buy and install a new tank: $1,500
- Savings by owning: $3,300+
And at the end of 10 years, you own the asset. With a rental, you own nothing.
If you're ready to cancel your rental and need a new water heater installed in Toronto or the GTA, call Alderwood Mechanical at 437-229-8618. We offer same-day installations with no rental agreements, no pressure, and upfront pricing.
Alderwood Mechanical serves Toronto, North York, Scarborough, Etobicoke, Mississauga, Vaughan, Markham, Oakville, and surrounding GTA. G1 licensed gas fitters. No contracts. Upfront pricing.