Rent or Buy: Hot Water Heater Edition

Maybe you just bought a new home and knew you’d need a new hot water tank. Or maybe you’re in your forever home and your tank is on its last legs. Regardless of your situation when it comes time to get that new hot water heater and tank you are going to face a decision. You are going to need to decide whether you are going to rent or buy your new tank and heater. We’ll discuss the benefits of each and try and help you decide what option is right for you.

We’ll first start with renting the heater as this is the most common choice. This option has long been the norm because it’s convenient and low-maintenance. Should something go wrong with the unit you aren’t responsible for maintenance and repairs. The cost of said maintenance and repairs are covered in the rental fee you pay. The rental fees are typically made monthly and are often low making this option affordable for people who cannot afford to pay upfront for a unit. Another benefit is that the installation costs are looked after by the rental company, meaning installation is free. Renting is typically a good option for people who are planning on only living in their current home for a short period of time. If you do not plan on staying in the home for an extended period of time, paying out of pocket for a unit you’ll only use for a small window of time is not the best option.

On the other hand you have the option to buy your hot water heater. More and more people are considering this option than ever before for a number of reasons. First, you have the choice to buy an eco-friendly water heater. This means long-term savings by reducing the cost of your utilities bill. The buying option is overall more cost-effective than renting in the long-term. So if you are in the home you picture yourself in for years, this is the ideal option for you. By buying your hot water heater, it also provides added home value if you choose to resell. When the day comes that you decided to move the cost of the purchase is recouped in the value of your home.

Once you decide between renting or buying you’ll be faced with one last choice. Tank versus tankless. Tanked water heaters store and heat water in an insulated tank. When you use hot water, the hot water leaves the tank and comes out whichever tap you have turned on. Behind in the tank, cold water enters to be heated and reheated and available when needed. One thing to consider is that when hot water is in high demand in your household, it’s not uncommon to completely empty the tank’s supply and have to wait for it to heat a new supply of hot water. Tankless water heaters on the other hand do not store water. They deliver a constant supply of hot water by passing water through a heat exchanger. They are extremely efficient, as water is heated only when needed, ensuring that you’ll never run out of hot water. Tankless water heaters are also compact meaning that they can be installed anywhere in your home. This option provides endless hot water and is more energy-efficient than tanked water heaters. Below is a breakdown of the two options.

So which option is for you? Well more and more people are moving to tankless when it comes to the type of heater for the above mentioned reasons. When it comes to renting or buying your water heater it comes down to your needs as a homeowner. Consider this, if you choose to rent your equipment, you should know that the total rental cost over 10 years can be higher than the cost of buying your heater. However, it will include the cost of any maintenance and repairs. If you purchase your equipment, it will be up to you to pay for repairs when they are needed and your unit will also depreciate over time. It comes down to what works best for you practically and financially.

At Jump Realty our agents can help you understand what option might be best for you and your home. Jump Realty Inc. Brokerage is a full service real estate brokerage and can help you with buying, selling, or any other real estate needs you may have. Our agents pride themselves on putting the customer’s above all else and their happiness is integral to how we’ve built ourselves. Our time with you does not end with the sale, we’ll check in and make sure everything is just right in your new home. With offices in Windsor, Tecumseh, Kingsville, and Chatham, we can help you find your new home wherever you are. If you need any real estate assistance, please contact us, and we’d love to provide you a better real estate experience!