Water Heater Rental Contract Ontario

In short

Ontario's list of what to ask before signing includes the contract length, any lien on title, exit costs, automatic renewal, removal and installation fees, and what happens if you sell.

Cancel in writing, by email or registered mail. For most contracts the company has 15 days to return your money.

A contract with a 10-day cooling-off period can still leave rent, removal costs and excess-wear charges owing if the unit went in before the 10 days ended.

A missing written contract, or a false statement by the seller, gives you up to one year to cancel.

Enbridge Gas sells, rents and repairs no water heaters. Leaks on a rented tank go to the rental provider.

Start with the paper

Enbridge Gas tells customers to find out first whether the current heater is a rental and to contact the provider before buying a new one, because the contract may carry cancellation fees.

Pull out three things before anyone comes to the house: the contract, the cover page on consumer rights, and the latest bill. They show the term, the renewal wording and the buyout method. For repair, replacement and the permit rule, see water heater repair and replacement.

What Ontario says to ask before you sign

The province lists questions to get answered in writing before any contract for a restricted product such as a water heater:

How long is the contract?
Will the company register a security interest on title, and what follows if you cancel early, refinance or sell?
When and how can you get out, and what do you pay if you do?
Does it renew without your prior consent?
Are there fees for removing old equipment or installing new?
Who handles the transfer or the cancellation fee if you sell the home?
What warranty comes with the unit?

Signing a new rental means ending the old one, so fees on the old contract can land first. Ontario suggests calling your current supplier before moving to a new one, since an upgrade may be on offer.

What you can still owe

A contract signed at home after you invited the seller carries a 10-day cooling-off period from the day you receive a written copy. You can cancel for any reason within it. Ontario also says that if you asked for the equipment to be installed before the 10 days ended, you may owe rent, the cost of removing it, and charges for unreasonable wear. A contract that arrives without the required written information can be cancelled within a year, and so can one built on a false or misleading statement.

A contract that came from unsolicited door-to-door marketing is void. You keep the product with no obligation, and the business must reimburse charges tied to the voided contract, such as removal.

Selling, buying and the land title

Many rentals came with a Notice of Security Interest on the property title. Since June 2024 Ontario bans new consumer notices and deems existing ones expired. The notice still shows on the title documents, and the underlying contract stays in force. The supplier keeps its rights under it and may pursue them in court. A lawyer can file to remove an expired notice, for example during a sale or a refinance.

If a call offers to remove the notice for a fee, or a lender offers a mortgage to consolidate liens, Ontario’s advice is to check the business, take independent legal advice and refuse any pressure.

Rent or own

One Ottawa plumbing firm advises buying over renting, on the view that rental companies usually collect more than the full cost of buying. That is one firm’s opinion, and your contract decides your numbers. Set the buyout figure beside a purchase quote from water heater cost in Ottawa over the years you expect to stay.

Who you are dealing with

We rent nothing, sell nothing and hold no contract with you. Once you have the buyout terms in writing, Ottawa Plumbing Desk can send your request to one independent Ottawa plumbing company, which prices an owned tank and the removal of the rented one.

Questions to ask the company

What is the buyout price today, in writing, and how is it calculated?

How long does the contract run, and does it renew by itself?

Who removes the rented tank, when, and is there a removal fee?

Is there a lien or Notice of Security Interest registered against my property for this tank?

If I sell the house, does the contract transfer to the buyer, or do I pay a cancellation fee?

Have this ready for the call

The signed contract and the cover page on consumer rights, with every page

The latest bill, the account number and the date the tank was installed

A photo of the label on the tank: brand, model, capacity, fuel

Any letters, emails or texts from the supplier about renewal or price changes

If you are selling or buying: the closing date and the name of your lawyer

Questions people ask

My rented tank is leaking. Who do I call?

Enbridge Gas says to contact your rental provider or an HVAC contractor for leak repairs, because leaks get worse over time and can cause serious damage. Close the water valve to the tank and call the provider named on your bill.

I am selling my house. What happens to the rental?

Ontario asks you to check before you sign who is responsible for transferring the contract or paying cancellation fees if you sell. Ask the supplier in writing for the buyout figure and its transfer terms, and tell your lawyer before closing.

I am buying a home. How do I find out about a rented tank?

Ontario warns that a buyer can take on responsibility for an existing appliance contract that comes with the home. Ask the seller, your real estate agent or your lawyer for the contract before closing. A lawyer can also check the land title for a Notice of Security Interest.

A company phoned offering to clear a notice from my title for a fee. Is that legitimate?

Ontario warns of a company contacting homeowners to remove Notices of Security Interest for a fee. Consumer notices are already deemed expired, so no homeowner has to remove one, and pressure is a warning sign. Report the call to the local police or the Canadian Anti-Fraud Centre at 1-888-495-8501.

How do I cancel a contract, and when do I get my money back?

Write to the business and send the letter by email or registered mail, so you have proof of the date. For most contracts the company has 15 days to return your money. If it wants the product back, it must collect it or pay for the collection.

A salesperson says my tank is unsafe and must be replaced today. Is that true?

Ontario advises you not to rely on a salesperson’s opinion that your water heater is unsafe or should be replaced. Ask for photo ID and the business name, and decline to sign on the spot; you do not have to sign a contract there and then. Local utilities, municipalities and government agencies send no salespeople door to door.