About two-thirds of propane users prefer to rent than to buy their propane tank. The reason is simple: rented tanks do not represent as much of an initial investment than buying a propane tank, which can cost up to $3,500. Here are some guidelines on what to keep in mind if and when you decide to rent a propane tank.
How much does it cost to rent a propane tank?
Sometimes, propane companies waive propane tank rent fees when you sign up with them. Otherwise, fees to rent a propane tank vary considerably. Although size plays a part in how much you pay per year to rend your propane tank, it is largely up to the propane company to decide what fee applies. Internet research indicates that it costs anything between $25 and $250 a year to rent a propane tank.
Why is propane more expensive for people who rent their propane tank?
If you buy your own propane tank, you are not tied to a single propane company, meaning that you are free to choose the company that offers the best price and the best service. This is an incentive for propane companies to lower their propane prices. If you decide to rent a propane tank, this decision should be made ahead of signing a propane supply agreement. Indeed, people who rent their propane tanks are usually only allowed to fill it with propane from the company whose propane they are renting. Consequently, propane companies know that, ultimately, they will be asked for a delivery, and push the prices up slightly. All the more reason to look around carefully before selecting your propane company by comparing quotes from the companies operating near your home.
Do propane companies include maintenance when they rent you a propane tank?
Yes. Most propane companies install and maintain a propane tank you rent from them. This can be very convenient because it means you have a single number to call for propane delivery or issues related to propane tank maintenance. Propane companies also usually provide yearly propane system inspections, or at least tank system inspections, to customers who rent their propane tank. Again, you should check what is include, and what is excluded, from your propane supply agreement before signing it.