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What's the deal with rented hot water heaters

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jonathan E

Thread Starter
Freshman Member
Joined
Jan 2, 2008
Professional Status
Certified Residential Appraiser
State
Connecticut
I read in the FHA guidelines that rented hot water heaters are unacceptable. How does that get worked into appraisal. Is is just mentioned or will in not go FHA unless they own it?
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I read in the FHA guidelines that rented hot water heaters are unacceptable. How does that get worked into appraisal. Is is just mentioned or will in not go FHA unless they own it?

THAT's a new one on me! I've never heard of a rented hot water heater. Do you suppose the homeowner only wants hot water when his/her parents visit?

Once the HWH is installed, it becomes real property and belongs to the property owner. Maybe they are installing solar hot water and only need the rented unit until the solar is installed. Is there even a market for HWHs that have been used as rentals?

Sounds absurd.
 

Jack Hines

Sophomore Member
Joined
Mar 23, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
THAT's a new one on me! I've never heard of a rented hot water heater. Do you suppose the homeowner only wants hot water when his/her parents visit?

Once the HWH is installed, it becomes real property and belongs to the property owner. Maybe they are installing solar hot water and only need the rented unit until the solar is installed. Is there even a market for HWHs that have been used as rentals?

Sounds absurd.

Some electric/gas companies offer to rent HWH to their customers. Ours used to offer it but IIRC they no longer do. They would usually install one of the most energy efficient heaters on the market for a low monthly rate so the homeowner would have no cash outlay and save money on the monthly bill due to having a hi-efficiency unit that they typically couldn't afford....
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Gas companies around here will sell you water heaters, or lease them. Much like the phone company used to lease telephones, it's a rip off scam. They'd lease you a unit for 2 years, and the occupant would unknowingly keep paying for many more years as the fees were well hidden in the monthly statement.

Years ago I bought a foreclosure with a leased water heater. Called the gas company to get gas turned on, and they wanted me to pay for the water heater. I said no way, foreclosure wipes out any liens and I'm not paying you anything for a 10 year old unit. The clerk said, well then they'd have to come take it out. I said find, come on. They never did show up... it would cost them more $$$$ to send someone out than a 10 year old unit was worth. I just pealed off the sticker that said it was a leased unit, lived in the house for 5 years, and sold it. Never did hear another word from them, and never will.
 

jonathan E

Thread Starter
Freshman Member
Joined
Jan 2, 2008
Professional Status
Certified Residential Appraiser
State
Connecticut
its very common in this area. The gas company also rents propane tanks in Conn.
The owner has a contract with the gas company for $15 per month for use of the hot water heater. the gas company ownes the heater and is resposible if it breaks. There is a electric baseboard heat in the home and a gas fired hot water heater. How else do you heat the water in other parts of the country? People are responding like this is a new thing or something?
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
People are responding like this is a new thing or something?
Yeah, a rented h2o heater would be a new thing & atypical, around here. If it's typical, where you are, then you should know the deal. It makes me wonder, are asphalt shingles available for rent over there? Call 1-800-rent-a-roof.
 

jonathan E

Thread Starter
Freshman Member
Joined
Jan 2, 2008
Professional Status
Certified Residential Appraiser
State
Connecticut
Thanks for feedback.

:new_2gunsfiring_v1:If I was looking for a dumb response I would have asked my dog.
 

CCAAMO

Senior Member
Joined
Sep 17, 2007
Professional Status
Certified General Appraiser
State
California
Why would one need to heat hot water?

/snark

:rof::rof::rof:

That's a new one. If its rented it begs the question, is it now considered personal property and not real property since I assume if you don't pay the rent, they take it back?? Might be the first time in history that by not paying your bills, you won't get into hot water!
 
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