When replacing your HVAC system, you’ll have to decide whether you would like to rent or buy one. As a homeowner, one thing that is always on your mind is how to create value within your property. Your home is an investment, and for it to be a good one, you have to make the right decisions.
HVAC systems can impact the value of your home. Something as long-term as a furnace is considered an investment within your home, so it is important to keep your future plans in mind when making the decision to rent or buy.
Your furnace is an important piece of equipment in your home and helps keep your house warm during the harsh New York winters. A well-maintained furnace will have a lifespan of 15 years and longer. However, sometimes things that are beyond your control can occur and you may find yourself replacing your furnace earlier than expected.
It is important to do your research in order to find a reputable service company. They will be able to determine whether your furnace can be serviced, or you will need a new furnace all together. To help you make the best decision for you and your home, below we will explore the pros and cons of renting vs buying a furnace.
What is the Difference Between Buying and Renting Your Furnace?
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Buying
When you buy a furnace, you have total possession of the system and you can use it any way that you want. While it is a riskier option, it can give you higher total savings over time. You have the option to pay up-front for your system or you can finance it. Financing allows you to have lower monthly costs, like renting would; however, it does not offer the same coverage for maintenance and service.
Owning your furnace can dramatically increase the value of your home. That is because the home is equipped with all of the appliances that will make it more comfortable, and it is one less thing for the buyer to worry about. If you plan on selling your home in the near future, selling it with owned appliances, like the furnace, can be beneficial.
Owning your furnace means that you determine who it will be purchased from, who will service it, and so forth. You are not tied to a company that has full ownership of the unit.
When you buy your furnace, you are responsible for:
- Precisely vetting the warranty to ensure that you have the most comprehensive coverage when compared to what others are offering for the same or similar units.
- Looking for user testimonials to ensure that the unit is worth the investment.
- Maintaining and servicing the unit as needed (or hiring someone to help with your maintenance).
- Any issues that may arise when the warranty expires.
Most manufacturers will only provide you with the parts to fix your furnace, leaving you on the hook for the labor costs.
When purchasing your furnace, here are some things you should consider:
Installation Quality: A poorly installed furnace can hurt your wallet in the long run. If you are investing in a quality system, you’ll want to make sure that you are working with an experienced and reputable company.
Zoning Systems: Some parts of your home may get colder depending on a number of factors, such as the construction or their location. If your thermostat is near those areas, you may notice hot and cold spots in your home, or you may be using more energy than you need to keep your home at a consistent temperature throughout. Zoning systems are made to solve those problems and divide your home into separate areas called “zones,” which are all controlled by their own thermostat.
Questions You Should Ask Before Purchasing a New Furnace:
- What size and capacity furnace does my home require?
- Are you bonded and insured (make sure that you have this in writing)?
3. Do you include a maintenance/service contract in the quote? - Will you be removing my old unit and handling the clean-up?
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Renting
Renting a furnace is done by signing a long-term contract at an agreed upon monthly rate, which is dependent on the length of the contract. When you rent a furnace, all of the risks of owning your own are lifted. Since the furnace is still owned by the rental company, it is in their best interest to keep it operational, which is why all repairs and services are included.
If you are planning on staying in your home long-term, renting your furnace may be the best option, based on the security and convenience it offers. When you rent a furnace, you don’t have to worry about maintenance or replacement costs, because it’s part of the service agreement. With the significant reduction of your maintenance and repair costs, gives you the opportunity to save more capital and/or money.
Many people find that the bills that affect them the most are the ones that they didn’t expect. That includes furnace part replacements, system breakdowns, and accidental damages. In the event that you sell your home, while the rental agreement is still in place, it can easily be transferred to the new owner.
Pros of Renting a Furnace at a Glance
- There Are No Upfront Costs.
The cost of a furnace can range from $3,500-$4,000. Most people are not prepared to add this additional cost to their budgets, which makes renting a more attractive option. - Not Costs For Repairs.
Most, if not all, of your repairs will be included with your yearly maintenance. To find out what exactly is covered, make sure to check your contract. - Free Replacement.
In the event that your furnace breaks down completely, you will be able to get a free replacement. However, this is only true for straight rental agreements. If it is a “rent to own” agreement, then you may be responsible for replacing the furnace and any service charges.
Cons of Renting a Furnace:
- Locked in Contract.
The contract can last up to 15 years. If you no longer want the contract or you sell your home and the new buyer does not want to take it over, you may be required to pay out the full amount. - High Interest Rates.
Sometimes, the lease payments will be based on a higher rate when compared to bank financing options. - Always Required To Make Payments.
When you are renting a furnace, you will always be required to make monthly payments as long as it is in your home.
Questions to Ask Your Rental Company:
If you decide to rent your furnace, below are some question you should ask the rental company you are considering working with:
1. How long is the contract?
2. Is it a rental furnace or a rent-to-own?
3. Who will be responsible for the cost to service the furnace?
4. Will I have to pay a yearly maintenance fee?
5. What is the interest rate that the lease will be calculated at?
Before Buying or Renting Your Furnace
The first thing you should do is figure out what furnaces and warranties are available to you. This will help you when you are determining your budget to see what will be the best option for you and your home.
The most important thing beyond the differences between the two options is the benefits that a new furnace can offer you. Whether you choose to rent or buy, the increased efficiency of your new system will be worth every penny.
When renting a furnace, Brawn Bros should be your first stop. They are the number one heating and cooling contractor and service provider in Regina and Saskatoon. Their replacement programs offer clients affordable monthly payments on brand-new efficient heating and cooling systems. With Brawn Bros, there is no money down required, free installation, no hidden fees, and free maintenance 24/7/365. Book an appointment here and contact them at 833-545-4533.
Author’s Bio
Leticia Nalukwata is a creative powerhouse behind entrepreneurs and small businesses, helping them communicate their services to discover their brand voice through copy-editing and content creation. When she’s not working, you can find her at your nearest coffee-shop indulging in a latte macchiato.
Finding Help with Moving Professionals
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