What to do now Tado has killed its smart thermostat rental option

Tado has quietly dropped the option to rent its smart thermostats and radiator valves, citing that users preferred to buy them outright as the reason behind the move.

New rental contracts were actually removed as an option as far back as August 31 2018, but the news is only now becoming widely known, as users are starting to report issues dealing with Tado now they are no longer able to rent the Tado Smart Thermostat.

Tado has said that rental agreements were originally available to give people a chance to try the system before buying. Tado offers a buy option, which comes into force at the end of the current contract year, and gives a discount equivalent to the final six months rental of the current contract (see the Tado support site for more information).

Tado rental problems – your rights and what to do next

If you have a Tado rental, you should note that it is not a hire purchase or rent-to-buy agreement. Similar to how TVs used to be rented, Tado’s agreement is merely a monthly cost to hire the equipment, regardless of how long you stay in contract. Contracts were for a minimum period of 12 months, but then automatically renew at the end of this period.

Aside from the option to buy the hardware, renters can cancel the contract and send the kit back, or continue to pay the monthly fee. Please note that contracts can’t be transferred to a new person, such as if you move house and want to leave the kit behind. However, rental agreements can be transferred with the hardware to your new property.

We strongly urge anyone on a rental package to calculate the total spend, as long-term contracts will exceed the value of the hardware. At current prices, the Tado Smart Thermostat kit costs £199.99. A rental agreement was for £3.99 per month for the first year (£47.88 total) rising to £5.99 for the second year (£71.88 total). In a little over three years, the rental price would exceed the purchase price.

Calculate the buying price, too. Buying the kit in the first year would cost you the entire year’s rent, plus the hardware costs and minus the discount, giving a grand total of £223.93. Buying in the second year would give you a total cost of £283.81.

Over the first year, the ability to try before buying wouldn’t have added much to the cost; continuing renting beyond this period soon becomes poorer value and buying outright makes more sense. Please note that if you’ve hired more kit, including radiator valves and the boiler extension kit, that the calculations will be slightly different.

If you don’t have smart heating or are looking to see what the top systems are, check out our guide to the best smart thermostats.

What’s your experience of Tado and renting? Let us know @TrustedReviews