Debating between renting and owning a water heater isn’t just about today’s costs—it’s about what you’ll be paying years down the road. While renting may seem like the easier option upfront, owning often proves to be the smarter long-term investment. Let’s break down how the numbers add up over time and uncover the true cost-effectiveness of each choice.
Upfront Costs: Renting vs. Owning
Renting
One of the most attractive features of renting a water heater is the low upfront cost. In most cases, you won’t have to pay anything for the initial installation or the unit itself. Instead, you pay a monthly fee that covers the water heater and associated maintenance services.
Typical rental costs range between $30 to $50 per month, which means $360 to $600 per year. While this may seem affordable, the expenses add up over time, especially if you rent the unit for ten or more years.
Owning
On the other hand, buying a water heater requires a significant upfront investment. The cost of purchasing and installing a unit can range from $1,500 to $4,000, depending on the type, capacity and efficiency rating of the system.
While this cost may seem steep, it’s important to consider the lifespan of most water heaters, which typically lasts 10 to 15 years or longer. Once you’ve paid off the initial purchase, you own the system outright and avoid the recurring monthly payments that come with renting.
Long-Term Costs Over 10 Years
Let’s break down the costs over a 10-year period for both renting and owning a water heater:
Renting
Assuming you pay an average of $40 per month, your total rental payments over ten years would be:
$40/month x 12 months x 10 years = $4,800.
Owning
If you purchase a water heater for $2,500, your total upfront cost is paid within the first year. After that, you only need to factor in minor maintenance costs. Let’s assume $100 per year for maintenance (typically, servicing is minimal):
$2,500 (initial cost) + ($100 x 10 years) = $3,500.
As you can see, even with basic maintenance costs, owning a water heater would save you at least $1,300 over a 10-year period compared to renting.
Maintenance Costs: What to Consider
One of the perks of renting a water heater is that maintenance and repairs are often included in the monthly fee, meaning you won’t have to pay out of pocket for repairs.
However, owning a water heater also has manageable maintenance costs. For example, regular maintenance checks cost around $100 annually—which is a relatively low expense compared to the long-term savings you’ll enjoy from owning the unit.
Repairs and replacements may be costly for an owned water heater; however, ongoing maintenance can minimize these risks, and many repairs are covered for at least 5 years with included warranties.
When Renting a Water Heater Makes Sense
While owning is generally cheaper in the long run, there are certain situations where renting may be the better option:
- Short-term living situations: If you don’t plan to stay in your home for more than a few years, renting might make more sense to avoid the high upfront cost.
- No surprise repair costs: For homeowners who prefer predictable monthly payments with no surprise repair bills, renting offers peace of mind.
The Best of Both Worlds: ClimateCare Financing
If the upfront cost of owning a water heater is a concern, there’s a middle-ground solution: financing. ClimateCare offers financing options that allow you to own a water heater with affordable monthly payments, giving you the long-term savings of ownership without the immediate financial burden. This way, you can enjoy the benefits of ownership without paying everything upfront.
Contact Advantage Airtech ClimateCare for Water Heater Solutions Today
Ready to own your water heater and start saving? Contact Advantage Airtech ClimateCare today to learn more about our financing options and expert installation services!
