So I’m doing a little homework for a seller and stumble across a home listing. Everything looks pretty normal… until I get to this part in the comments:

“Great news! Rental items have ongoing exceptional maintenance! Furnace + Hot Water Tank ($140/mth), Water Softener ($81/mth), and Security System ($45/mth).”

And I thought… wait a second. Is this really great news?

Let’s do the math. That’s just under $270/month in rental fees – for stuff most people expect to come with the house. I mean, imagine getting the keys to your new home and realizing you’re basically leasing your furnace. Not exactly the housewarming gift you were hoping for.

In my experience (which spans four decades), buyers aren’t thrilled when they hear about rental appliances. Quite the opposite. They often see them as extra costs they weren’t planning for. Case in point: $270/month over 5 years = $8,400. That’s a lot of takeout dinners, weekend getaways, or, you know… a brand new furnace you’d actually own.

Let’s break it down a little more:
We installed a new gas furnace in our home for about $6,000 and a hot water tank for $1,800. No rentals. No monthly bills. And when we sell, those upgrades come included – exactly what most buyers expect.

Now, I get it – sometimes buying outright isn’t an option. Life happens. If renting is the only way to keep your home comfy and warm, then sure, go for it. But it’s important to understand what that choice could mean down the road when it’s time to sell.

A client of ours recently had to pay out $11,000 just to remove rental agreements for a furnace and central AC. Ouch.

And here’s the kicker: when I called to buy out a 16-year-old water heater in my own place, the rental company tried so hard to keep me renting. The payout? Just $27. Yep. Twenty-seven bucks. That’s the cost of lunch these days. Needless to say, I paid for it and moved on.

So here’s my two cents: If you’re thinking about renting appliances, ask about the buyout clause before you sign. And if you’re selling a home with rental items, let’s chat. I’ve successfully negotiated these into deals before – sometimes without any cost to the seller.

Got questions about your furnace, hot water tank, or what buyers expect? I’m here to help.
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