What Is a Propane Tank Lease?

Written on: June 3, 2024

Lakes Gas makes is easy to have a propane tank at your Upper Midwest home!

propane tank wisconsin As homeowners, we continuously look for ways to efficiently manage our homes, ensuring comfort while also being mindful of costs and responsibilities.

Among the various utilities and services our homes require, the use of propane stands out for those of us not connected to natural gas lines. If you’re considering propane as a heating source, you might have encountered the option of leasing a propane tank.

But what exactly does a propane tank lease entail, and is it the right choice for your home?

In simple terms, a propane tank lease is an agreement between a homeowner and a propane supplier where the supplier installs a propane tank at the homeowner’s property for a fee. This arrangement normally covers the installation, maintenance, and sometimes even the removal of the tank, should you decide to change suppliers or no longer need propane. Typically, the lease is paid on an annual basis, but terms can vary significantly from one supplier to another.

Lakes Gas offers our Upper Midwest customers affordable propane tank leasing. It eliminates the expensive up-front costs of purchasing and installing a tank, and relieves you of the responsibility for maintenance and repairs of the tank.

Costs associated with leasing can also vary, often depending on the size of the tank leased and the amount of propane the household expects to use. It’s important to note that when you lease a tank, you are usually required to purchase propane exclusively from the leasing company, which can impact the price you pay per gallon.

Pros of propane tank leasing

Choosing to lease a propane tank is something to be carefully considered. Here are some reasons why leasing a propane tank may make sense for your home.

Lower initial costs: Leasing a tank typically requires less upfront investment compared to purchasing. Installation and maintenance are usually covered by the lease, easing financial pressure on homeowners.

Hassle-free maintenance: The leasing company is responsible for the upkeep of the tank, including regular maintenance and any repairs that might be necessary.

Flexibility: Leasing allows homeowners to test if propane is the right fit for their home without committing to the purchase of a tank.

Propane tank leasing frequently asked questions

Q: Can I switch propane suppliers if I don’t own the tank?

A: If you lease your tank, switching suppliers usually means you’ll need to have the current tank removed and a new one installed by the new supplier, often at an added cost.

Q: What happens if my propane use dramatically increases or decreases?

A: Your lease terms should accommodate fluctuations in usage, but it’s wise to contact your supplier if you anticipate a significant change to reassess your needs.
Q: Is it possible to buy out my propane tank lease?

A: Some companies may allow you to purchase your leased tank. Terms can vary, so it is crucial to discuss this with your provider.

Affordable, worry-free propane tank leasing from Lakes Gas lets you enjoy having a propane tank at your home without the hassle of purchasing and maintaining it. Contact us today to learn more.