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Reliance Home Comfort Reviews & Complaints

Updated on

1.2
Rated 1.2 out of 5
1.2 out of 5 stars (based on 69 reviews)
Excellent4%
Very good0%
Average3%
Poor2%
Terrible91%

Bottom line

Renting a water heater or other home appliance from Reliance is similar to buying an extended warranty as it works as form of insurance. You pay more for the product upfront and get support should anything go wrong. However, it is a great moneymaker for providers and a bad deal for the majority of their customers and not a common practice in Canada outside of Ontario. Purchasing your own unit can result in substantial savings over time, according to the Competition Bureau.

Pros

  • No large up-front cost
  • Low monthly payments
  • They handle service and repairs

Cons

  • High cancellation fees
  • Many complaints about their maintenance and repair services
  • No coverage for damage caused by leaking tanks

About Reliance Home Comfort

Reliance Home Comfort installs, rents and services water heaters, furnaces and air conditioners to 1.7 million Canadian households primarily in Ontario, but also in western Canada.

The company was started in 1999 as the water heater rental division of Union Gas (now Enbridge), which had a monopoly over a large portion of Ontario. The company worked with home builders to pre-install gas-powered water heaters to increase usage and reliance on Natural Gas as a source of fuel.

Due to regulatory changes, the unregulated water heater rental business was split off as Union Energy in 1999 and acquired by Epcor for $160 million in 2001, spun off as UE Waterheater Income Fund in 2003 and purchased by Alinda Capital Partners for $1.74 billion in 2007 and purchased by CK group for $2.8 billion in 2017.

Who owns Reliance Home Comfort?

Reliance Home Comfort is owned by Hong Kong-based CK Asset Holdings Ltd. (75%) and Cheung Kong (CK) Infrastructure Holdings (25%) owned by Chinese-Canadian businessman Victor Li, and his father Li Ka-shing, Hong Kong’s richest person and 30th richest person in the world, with a net worth of $35.4 billion. They acquired the company from US private equity fund Alinda Capital Partners for $2.82 billion in 2017.

How much does it cost to rent a water heater from Reliance?

Ontario residents can rent a hot water tank from Reliance Home Comfort for $20 to $35 per month depending on the size of the tank. Tankless water heater rentals are commonly found in new builds and cost $35 to $50 per month.

In addition, the agreements stipulate that these charges are increased every year by the greater of 3.5% and Ontario CPI.

These rental agreements continue until the “end of the useful life” of the unit, which is from 10 to 20 years and an average of 16 years. At $35 per month, payments made during the agreement would add up to $4200 to $8400 – 3 to 6 times the installation cost of the tank (about $1500).

Further reading: Is renting a water heater worth it?

Reliance Home Comfort contract example

For installs made before November 5, 2014, the following agreement applies:

You will not be able to terminate this agreement until you have rented the water heater for at least a period of 84 months following the commencement of your rental agreement (the “Minimum Rental Term”), unless you buy the water heater from us in accordance with this agreement.

If the water heater has reached the end of its useful life and we are not installing a replacement, you shall at such time own the unit.

Example buyout schedule

I was not able to find a copy on their website, but I found a few examples online:

Age (Years)Buyout price
41800
53,726
51500
7700
7.52118
8895
9700
10545
10700
11329
11810
12600
141400
14210
15700
1625
1625
20100

How to cancel a Reliance Home Comfort water heater contract?

Agreements started in 2009

A consumer was recently quoted:

  • $150 + HST – Drain, disconnect and removal from the home
  • $150 + HST – Pickup already drained and disconnected
  • $150 + HST – Account Closure Fee
  • $100.00 – Dropped off to our nearest drop off location.

An appointment is not necessary, but the drop off hours were limited to: Mon, Wed, Thurs from 8am to 12pm

Agreements started after Nov. 5, 2014

For agreements started after November 5, 2014 and until November 5, 2024, the 2014 Competition Tribunal orders to Reliance Home Comfort applies, which state:

Termination

  • Reliance shall permit a Customer or its Agent to terminate a Rental Agreement at any time by submitting a Notification of Termination by telephone, facsimile, e-mail or webform.

Removal

Reliance shall permit a Customer or its Agent to:

  • drain, disconnect, remove and/or return to Reliance the water heater that is the subject of the Rental Agreement; or 
  • request that Reliance drain, disconnect, remove and/or pick up at the Installed Address the water heater that is the subject of the Rental Agreement

Fees

Other than any outstanding rental payments and interest charges owed, Reliance may not charge any Exit Charges other than a:

  1. Maximum termination charge of $200 (unit is less than 1 year old) and a maximum of $40 (unit is more than 1 year old and less than 10 years old).
  2. Maximum pick-up charge (not including draining or disconnection) of $65 in respect of a natural gas, a maximum of $125 for an electric.
  3. Maximum pick-up charge (including draining and disconnection) of $125.
  4. Any cost to repair damage to Reliance units only when the following two conditions are met: 
    1. the damaged unit is less than seven (7) years old; and 
    2. the damage was caused by a Person other than Reliance, the proof of any such damage being caused by a Person other than Reliance resting with Reliance. 
  5. Purchase price voluntarily agreed to by a Customer to purchase the unit outright. (optional)

Regulatory actions against Reliance Home Comfort

2014 – Reliance acquires National Home Services, which was fined for door-to-door sales practices

Competition Bureau makes National Home Services (acquired by Reliance on same day) pay $7 million for misleading door-to-door sales

2014 Competition Tribunal consent agreement

After Reliance was found to be using using anti-competitive processes that made it difficult and frustrating to return or cancel their water heater rental, the Competition Bureau issued a consent order ordering Reliance pay a penalty of $5 million and modify its residential rental agreement termination and water heater return policies to:

  • Not require customers to obtain an authorization number before returning their unit
  • Allow a new supplier to terminate a customer’s account on their behalf
  • Not unreasonably restricting where and when a unit can be returned
  • Not charging unwarranted fees to switch providers or terminate contracts
  • Open new return depots

Customer reviews

1.2
Rated 1.2 out of 5
1.2 out of 5 stars (based on 69 reviews)
Excellent4%
Very good0%
Average3%
Poor2%
Terrible91%

Kept billing for services after tank was returned

Rated 1 out of 5
April 28, 2022

We got a new non-rental hot water tank and had reliance come pick up their tank. We got the paperwork showing that they had taken possession of the tank. Fast forward and now they have sent us a bill for the tank for the next billing period (which is way after the date the tank was returned). Not at all surprising as they are a terrible company but still ridiculous.

Megan

Hot water tank burst

Rated 1 out of 5
April 28, 2022

Back in November our rented water tank burst while we were away. I filed a claim for damage in December and despite numerous phone calls and emails to claims department cannot get any response let alone settlement for the damage. This claim has been sent to appropriate person and although I have a claim number is still not resolved. Heads up this is how as a customer you are treated

Peter Clarke

Cancellation fees and more fees to return a 13 year old rental water tank!

Rated 1 out of 5
April 28, 2022

I bought a house with a 13 year old water heater tank that was rented through Reliance. The water tank has not been functioning well and I knew it needed replacing anyway when I bought the house. I am now trying to return the old tank and was told that I need to pay $250 fee to “discharge” the account. Then she needed to tell me three options on how to return the tank. The cheapest option was $100 just to return the tank to a specific location. Not only that, I need a Referrence number in order to return the tank, and also need to fill out a form (“Agency Agreement” form) in order for the installers of my new tank (not rental) to be able to return it on my behalf. $350.00 to return a tank that effectively no longer works!!

Janice

Reliance home comfort

Rated 1 out of 5
April 28, 2022

We had a lien placed on our home, without our knowledge, by reliance. We pay monthly for our air conditioner rental and have never missed a payment.

Lauren

Over charge after returning water softener

Rated 1 out of 5
April 28, 2022

In February, I switched from Reliance Home Comfort to AirOne because Reliance keeps increasing rental cost without notice and I found AirOne has better price. AirOne said they could return the water heater and water softener to Reliance for me. I called Reliance to find out if my softener was in contract. The guy of Reliance told me it’s not in contract and so I let AirOne install new set of water tank and water softener and the returned mine back to Reliance.
Afterwards, I called Reliance for the final bill and they didn’t provide it within 30 days of product return. After 30 days, I called again, they said water softener was in contract and charged me $1200. I explained to them that I was told it was in contract before I returned. They never listen and keep charge me.
One more information is that the house was built in 2015 and I purchased this house in 2019. The former owner or builder use Reliance’s product and service. I didn’t have any document in hand. I take whatever the guy told me that it’s not in contract.
Did Reliance break the regulation under Competition Act? Could they charge me that much?

Will

Leave a review or submit a complaint

If you have experience with Reliance Home Comfort, we’re interested to know your thoughts. How long have you been with them and what do you think about their service, contracts and value? Let us know by leaving a review and sharing your experience below!

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2 comments

  1. As homeowners we were also shocked three years ago when we went to get a line of credit and were turned down because of a lien Reliance put on our house. We had no choice but to pay it off, which was a lot of money! We got a lawyer and it was discharged. It’s been three years since that happened and we went to extend our line of credit just two months ago to find out that the lien was never taken off! ! Apparently, the Land Titles Registry Office doesn’t have to tell homeowners when this happens so the owners could still have a lien even though you have a discharge. Maxium Financial was the company Home Reliance went through to put a lien on my property, but Maxium Financial had changed their name to a numbered company and it’s necessary to include that in the paperwork when taking the lien off. The Land Titles Registry Office gave Reliance 5-8 days to fix this paper work in order to take the lien off and Reliance never bothered, so the Registry withdrew the discharge and kept the lien on the house. Here we are three years later, we owe nothing after paying reliance a huge lump sum of money, and we now have two lawyers trying to contact someone at Reliance to help us (specifically, the woman who signed off on it the first time they tried to discharge it). She won’t return their emails and calls. My lawyers don’t understand why they won’t take the time to fill in papers to take a lien off of our property when we don’t owe them any money. This is our life that they are messing with. We cannot secure any line of credit ever again with any bank until they complete the paperwork and have the lien taken off. What are they gaining from doing this to us, after paying them three years ago. Unfortunately, we are now discussing court action at this point and going to CHCH media, who is very interested in this story if they have more people willing to share. It looks like there are many, so this definitely is an option I will now start exploring this week.

    Reply
    • Sounds familiar. It is becoming a fight to get the lien lifted on my property. Just see who owns Reliance and you will understand why there is a ‘don’t care attitude’