Runners Forum - Kick Runners banner

1 - 14 of 14 Posts

·
Premium Member
Joined
·
7,012 Posts
Discussion Starter · #1 ·
I'm reading documents with respect to a Canadian company that my company is considering investing in. This company's business involves rent hot water heaters. According to the documents that I'm reading, a large percentage of Canadians <i>rent</i> their hot water heaters at a rate of $15-20/month (particularly in Ontario province) rather than just buying one for a couple hundred dollars.<br><br>
This seems like a crazy business model to me. Why would anyone in their right mind not just BUY a hot water heater instead? <img alt="confused.gif" src="http://files.kickrunners.com/smilies/confused.gif"><br><br>
(btw - we are going to decline this investment)
 

·
Registered
Joined
·
22,216 Posts
I've always bought mine <img alt="dontknow.gif" src="http://files.kickrunners.com/smilies/dontknow.gif">
 

·
Registered
Joined
·
6,871 Posts
Renting used to be really popular in the 70s, during the big move to hydro-electricity.<br><br>
So there are still (a lot?) of legacy renters out there.<br><br>
Hydro-Québec (the second largest utility in the world!) was having a lot of ads at the time<br><br>
(Griz, remember the Cascade 60 ads?)
 

·
Premium Member
Joined
·
7,012 Posts
Discussion Starter · #4 ·
The company we were looking at has more than 1.5 million current contracts, so there are a lot of households that are still renting - and the projected numbers are growing.<br><br>
 

·
Premium Member
Joined
·
5,646 Posts
I live in Ontario and I rent mine for $3.90 per month. It was going to cost $450 to buy it and have it installed with a 5 year warranty.<br><br>
Hot water heaters aren't nearly as long lasting as they used to be...10 years is good, many are toast by 6 or 7.<br><br>
Service calls are included in the rental price.<br><br>
Mine seemed like a no brainer, but if someone is paying $20 per month then they are a no-brainer.
 

·
Premium Member
Joined
·
7,012 Posts
Discussion Starter · #6 ·
Interesting. The Company's business model shows an average rental rate of $8/month for the low-end model, $14/month for the standard model and $21/month for the high-end model.<br><br>
Average useful life is claimed to be 14 years.<br><br>
I'm glad that we didn't do this deal.<br><br>
 

·
Premium Member
Joined
·
8,806 Posts
I do recall what Martin mentioned, but I haven't seen that business proposition out here in Alberta.
 

·
Registered
Joined
·
12,467 Posts
I haven't heard of rental hot water heaters in BC, but that might be because we use more gas than electricity here. I will give a big fat one on the reliability comments. We've bought two houses and both had Sears Hot water tanks. Both gave out well before their warranty dates so we got new tanks for each house shortly after we took possession.
 

·
Registered
Joined
·
1,628 Posts
I would neither buy nor rent a <b><i>hot</i></b> water heater. If the water is already hot, there's no need to heat it.<br><br>
Down here where I live, people buy (but do not rent) water heaters.<br><br><img alt="wink.gif" src="http://files.kickrunners.com/smilies/wink.gif">
 

·
Registered
Joined
·
2,653 Posts
I lived in Ontario and rented. I think I paid about $65 per quarter. That included about 15% for provincial and federal sales tax. I'm pretty sure it was a gas unit. My house was built in the mid '80's and back then most houses installed rental units. The benefits included free repair/replacement and free service trips. About 5 years after I bought the house the darn thing broke down and had to be replaced. I looked at purchase and it was around $1,000 installed, so I opted to continue renting.
 
1 - 14 of 14 Posts
Top