Owning vs Renting Your Propane Tank

Weighing the pros and cons of owning versus renting a propane tank is a key part of your propane journey, and it is one of the first decisions many homeowners face. Choosing whether to own or rent a tank affects your upfront cost, who handles maintenance, and even which propane supplier you use.  

Whether you are planning a new propane tank installation or rethinking your current setup, knowing the differences can help you pick the best option for your home and budget. 

• What's the Difference Between Owning and Renting Your Propane Tank? – Renting means the propane provider owns, installs, and maintains the tank and you buy propane from them. Owning means you buy the tank, can get propane refills from any provider, and are responsible for using qualified professionals to keep it in good working condition. 
• Pros of Renting Your Propane Tank – Renting keeps upfront costs low and puts installation, maintenance, and repairs in your provider's hands. 
• Cons of Renting Your Propane Tank – Renting usually comes with minimum annual usage, a small rental fee, and buying propane from the provider that owns your tank. 
• Pros of Owning Your Propane Tank – Owning removes rental charges, allows underground installation, and lets you choose your propane supplier. 
• Cons of Owning Your Propane Tank – Owning means a higher upfront cost, responsibility for arranging maintenance and inspections with a qualified professional, and an added step if you ever sell your home. 

What's the Difference Between Owning and Renting Your Propane Tank? 

Renting Your Propane Tank 

Renting means the propane provider owns, installs, and maintains the tank, sometimes with a small annual fee. It is the lower-maintenance option: fewer upfront costs and a provider who handles installation, maintenance, and repairs.  

Owning Your Propane Tank 

Owning means you buy the tank outright, giving you the freedom to choose among propane suppliers servicing your area. That freedom comes with the added responsibility of keeping the tank in good working condition, with any maintenance, inspections, or repairs completed by qualified professionals.  

Pros of Renting Your Propane Tank 

Reliable Maintenance Support 

When you rent your tank, maintenance is not just included; it is prioritized. Most providers follow a set schedule to keep equipment in good shape. Ferrellgas inspects leased tanks and works to stay ahead of potential issues, so you have fewer surprises and one less thing to manage.

Easy Service Transfers 

Moving to a new home is simple with a leased tank. Ferrellgas makes it easy to transfer your propane service to your new location, and because the tank stays with the provider, there is one less thing to coordinate during your move, with no inspections or selling to worry about. Chat with us online or call 888-337-7355 for details. 

Less Responsibility for Maintenance and Repairs 

When you rent a tank with Ferrellgas, maintenance is included as part of your service. Our technicians inspect your tank during scheduled deliveries or when you let us know about a concern, and handle repairs to help keep your equipment in good working condition. 

Lower Upfront Costs 

Buying a propane tank can require a significant upfront investment, while renting typically reduces initial costs. A one-time setup or swap fee may apply, but you avoid the larger cost of purchasing a tank outright, which makes it easier to get started with propane. Questions about pricing? Our Customer Service Professionals are ready to walk you through it. 

Cons of Renting Your Propane Tank 

Minimum Annual Usage 

Some propane providers require a minimum annual usage amount, and customers who do not meet that threshold could incur additional fees or account changes. Minimum annual usage is typically designed to align your service with the fuel demands of your home, from heating to appliances. If your usage drops significantly, your supplier may reach out to review your setup. This is also a good time to confirm your plan still fits your needs and everything is working as it should.

Supplier Commitment 

Because the propane provider owns the tank, you generally cannot purchase propane from another supplier. This agreement is intended to keep service consistent and ensure maintenance is handled by a team of qualified professionals who are familiar with your setup.  

Potential Lease Fee 

Some propane companies charge an annual tank rental fee, which increases the ongoing cost of service. Tank rental helps suppliers cover the cost of routine inspections and system upkeep. Depending on your preferences, a small fee may be worth the convenience and confidence that comes with knowing a trusted propane provider is keeping your system in good working condition.  

Pros of Owning Your Propane Tank  

Can Be Installed Underground  

Owning a propane tank can provide more flexibility for tank placement, including the option to install your tank underground, though availability varies by provider and location. Propane tank installation should always be done by trained Service Technicians, so it is worth talking through your options before you buy. Chat with us online or call 888-337-7355 to learn more.

No Rental or Minimum Usage Charges 

Owning your tank means you are not subject to the rental fees or minimum usage requirements typically tied to a lease agreement. Keep in mind that those savings are often offset by maintenance and inspection costs over time.  

Flexibility in Choosing Your Propane Provider  

Owning your tank gives you the flexibility to choose the propane supplier that best fits your needs. Ferrellgas offers convenient options like Auto Fill delivery service* and digital tank monitoring*, plus flexible payment methods and the ability to manage your account online. Delivery is completed by trained, local professionals and backed by a reliable nationwide supply network, with an around-the-clock team dedicated to handling emergency service.  

*Qualification and active credit status are required for Auto Fill delivery service. Availability and cost of digital tank monitors may vary by location. 

Cons of Owning Your Propane Tank 

More Upfront Costs 

Buying a propane tank is a larger initial investment that can pay off over time if you stay in your home for several years. 

Maintenance Responsibilities 

Tank owners are responsible for all maintenance, inspections, and repairs to keep the tank in good working condition. This should always be done by a qualified professional. If your tank does not meet safety standards, a propane provider may decline service until the system is repaired or replaced. Stay on top of your propane tank maintenance with our year-round maintenance guide. 

Additional Steps When Selling Your Home 

If you sell your property, selling your propane tank can add a step to the process. Depending on the circumstances, you may need to provide documentation related to tank ownership and how much propane is left in it.  

Ready to Make the Switch to a Reliable Propane Company?  

Whether you own or rent your tank, choosing a propane company you can count on is what matters most. Ferrellgas is a trusted propane company backed by a nationwide supply network and responsive local service teams, helping keep your home fueled and giving you real people to call when you need them. 

If you own your tank, sign up for Ferrellgas to schedule a safety inspection and your first fill. If you lease your tank, Ferrellgas will swap it for a new one and leave the old tank in a safe location for your previous provider to pick up. If you do not have a tank, Ferrellgas will advise on the best option for your needs and handle the propane tank installation process from start to finish. Learn more about switching to a propane company you can trust.

 

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