Water Heater Rentals in Canada: A hot topic for International Assignees?

Nov 20, 2019 @ 08:00 AM / by Zach Rossignol

Hot Water Heaters in Canada

Tenants in Canada (and most of the world) are required to pay for rent and utilities, as well as extra amenities like cable TV and internet. There are some parts of Canada, however, where renting water heaters is common, and the question of who pays – tenant or landlord – can cause confusion.

Are Hot Water Heater Rentals used throughout all of Canada?

No, they are not. In AIRINC’s research of who is responsible for paying the rental fee for hot water heaters, it was interesting to see that the issue is not universal across the country. Residents in Ontario are reportedly quite comfortable with the concept of water heater rentals, while the province of Alberta has almost no rental contracts as homeowners prefer to buy the water heater outright.

Water heaters cost between a thousand to a few thousand dollars depending on the size, quality, and energy source, plus several hundred to a few thousand more to install. Since a typical water heater lasts six to twelve years depending on usage and water quality, owning is often preferable to renting after six or seven years, assuming no maintenance is required over that time. The cost of renting a water heater in Ontario is roughly $25-50/month based on pricing from the major companies that specialize in these rentals.

While these are considerations for new home buyers in Canada, it is also important for tenants to know what is expected of them.

Who Pays for the Hot Water Heater Rental Fee?

Payment of this fee is decided by the lease the tenant signs at the beginning of their occupancy. The 2006 Residential Tenancies Act of Ontario states that the landlord is responsible for 'vital services,' which are defined as hot or cold water, fuel, electricity, gas, and heat unless the tenant expressly agrees to obtain and maintain the vital services.

In order to have the tenant pay for the rental of the hot water tank, the lease agreement should explicitly state the tenant's responsibility for this in addition to the normal rental parameters.