Electric hot water heaters – better to rent or buy? When choosing an electric water heater, you’re faced with the decision to whether buy or rent one. Renting is a beguiling option because there is little if any upfront cost and the monthly rental seems to be low. However that can become a money drain, as a recent post in the Balance Junkie money blog suggested.
The math is actually pretty obvious when you sit down and do the numbers. Let’s say you rent an electric water heater for about $20 to $25 a month with a life expectancy of six years. That comes out to about $1,440 to $1,800 over six years, more if the water heater lasts longer, which it certainly can. Over 10 years the price of a rental goes up to $2,400 to $3,000.
The Balance Junkie article found that a new electric water heater costs, with installation, just over $1,249. Of course your experience can vary, but you get the picture. If you plan to stay in your home for any significant period of time, it just makes more sense to buy rather than to rent.
The one objection you might raise is potential repair costs for an electric water heater if it is bought rather than rented. Under a rental agreement the company renting the unit is responsible for all repairs. After the warranty period expires for a purchased model, you will be responsible for repairs. But most water heater repairs do not cost a lot of money, so renting is still not a cost savings, especially when you might ultimately pay double for renting the same unit than if you bought one.
For more advice on finding the perfect hot water heater for your household, please contact the experts at Hayes Plumbing!