When it comes to water heaters for rental properties, the decision between a tankless or traditional storage-type system can have significant implications for efficiency, cost, and tenant experience. As an experienced water heater specialist, I’ll dive deep into the key considerations for landlords and property managers evaluating these two popular options.
Tankless Water Heaters
Tankless water heaters, also known as on-demand or instantaneous heaters, offer a number of potential benefits for rental properties. Unlike standard storage tanks, tankless units heat water only when it’s needed, rather than constantly maintaining a large reservoir. This can lead to substantial energy savings, as the system isn’t expending energy to keep a full tank heated 24/7.
Tankless water heaters also tend to have a longer lifespan than traditional models, with many manufacturers offering 10-15 year warranties. By eliminating the storage tank, there’s less risk of catastrophic leaks or failures that can cause water damage in a rental unit. Additionally, tankless heaters take up much less physical space, providing more flexibility for placement.
However, the upfront installation cost for a tankless system is typically higher than a standard storage water heater. Proper sizing is also critical, as undersized units may struggle to keep up with high-demand situations like multiple concurrent showers. Improper venting or gas line sizing can also lead to issues. As one Reddit user noted, “Every post I read about them is essentially listing all of the drawbacks to them. So just don’t bother with them?”
Storage Water Heaters
The traditional storage water heater remains a popular and reliable choice for rental properties. These models store a tank of pre-heated water, ready to be distributed on demand. While they don’t offer the same energy efficiency as tankless units, storage heaters are generally less expensive to install and maintain.
Many seasoned landlords and property managers recommend sticking with standard storage water heaters, as they are a “tried and true” technology. As one BiggerPockets.com user stated, “I’d stick with conventional hot water heaters. Tried and true, pretty set cost and lasts a good while.” The predictable, well-understood nature of storage heaters can provide peace of mind for rental property owners.
That said, storage water heaters do carry a higher risk of leaks and failures over time, which can lead to costly water damage if not caught quickly. Regular maintenance, such as flushing sediment and replacing anode rods, is crucial to extending the lifespan of these units.
Plumbing Techniques and Considerations
Regardless of the water heater type, proper plumbing installation and maintenance is critical for rental properties. When it comes to pipe material selection, copper and PEX are often the top choices for their durability and corrosion resistance. Ensuring the right pipe sizing is also important to prevent flow issues or pressure problems.
Leak detection and prompt repair are essential in rental settings, where small issues can quickly escalate into major problems. Installing water sensors and implementing regular inspections can help landlords identify and address leaks before they cause significant damage.
Installation Methods
Both tankless and storage water heaters require careful installation to function optimally. For tankless units, proper electrical or gas connections, as well as adequate venting, are musts. Choosing the right placement is also key, as tankless heaters perform best when located close to the fixtures they serve.
With storage water heaters, factors like the size of the tank, heating element type (gas or electric), and accessibility for maintenance all merit consideration during the installation process. Ensuring the water heater is placed in an easily accessible location can save time and frustration down the line.
Energy Efficiency and Cost Savings
One of the primary draws of tankless water heaters is their potential for energy savings. By only heating water on demand, these units can significantly reduce a property’s utility bills compared to a traditional storage heater. Some estimates suggest tankless systems can be 24-34% more efficient than storage models.
That said, the upfront cost of a tankless heater is often higher. And while the long-term energy savings can offset this, the initial investment may be a barrier for some rental property owners. Exploring rebates, incentives, and energy-efficient models can help bridge the gap.
Longevity and Lifespan
Both tankless and storage water heaters have their own longevity considerations. Tankless units are generally regarded as having a longer lifespan, with many manufacturers offering 10-15 year warranties. Proper maintenance, such as regular descaling and anode rod replacement, can help extend the life of these systems.
Traditional storage water heaters typically last 8-12 years, with proper care. Factors like water quality, usage patterns, and maintenance schedules can all impact the lifespan of these units. Regularly flushing the tank to remove sediment buildup and replacing the anode rod are essential steps to maximize the useful life of a storage water heater.
Rental Property Considerations
When evaluating water heater options for rental properties, there are a few unique factors to consider:
Tenant Education: Ensuring tenants understand proper usage and maintenance procedures is crucial, whether the property has a tankless or storage water heater. Providing clear instructions and guidelines can help prevent misuse or neglect that could lead to premature failures.
Accessibility and Upgrades: For rental properties, water heaters should be placed in easily accessible areas to facilitate regular maintenance and any necessary repairs. Upgrading to more accessible models or relocating existing units may be beneficial.
Compliance with Local Regulations: Landlords might want to also double-check that their water heater selection and installation adhere to all relevant local codes and regulations. This may include requirements around energy efficiency, venting, seismic restraints, and more.
Cost Comparisons
Ultimately, the decision between a tankless or storage water heater for a rental property often comes down to a careful cost-benefit analysis. While tankless systems may offer long-term energy savings, the higher upfront installation costs can be a significant hurdle for some investors.
As one Redditor in r/PersonalFinanceCanada noted, the rental option of $18 per month for a 50-gallon storage heater versus a $1,450 purchase price is an important consideration for new homeowners. The tradeoffs between initial outlay, ongoing operating expenses, and potential maintenance costs might want to all be weighed.
Landlords should also factor in the potential impact on tenant experience and satisfaction. An unreliable or inefficient water heater can lead to complaints, negative reviews, and higher turnover – potentially offsetting any perceived cost savings.
In the end, there is no one-size-fits-all solution when it comes to water heaters for rental properties. By understanding the unique strengths and weaknesses of both tankless and storage systems, as well as the specific needs and constraints of your rental business, you can make an informed decision that best serves your property and tenants. For more insights on water heater selection, maintenance, and installation, be sure to visit WaterHeaterPick.com.
Tip: Consider upgrading to a tankless water heater for energy savings
