When to Change The Water Heater In Your Rental Property

How do I know when it is time to change the water heater in my rental property?

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Unlike refrigerators, stoves, and ovens, which are optional, the water heater in a rental property is a must-have. The presence of a working water heater is one of those things that determine the livability of a rental property. If the rental doesn’t have a water heater at all or the water heater is not working, the landlord’s warranty of habitability is voided.

This is why issues with the water heater in a rental property are very important. As a landlord, you want to make sure the water heater in your rental is performing optimally at all times. But at the same time, you don’t want to spend too much money maintaining the system. This means you should know when it makes more sense to replace the water heater than to repair it.

When to replace the water heater in your rental property:

  • When the water heater is old

On average, most water heaters have a lifespan of ten years. But storage tanks and heat pumps can last up to 15 years. Solar water heaters and tankless water heaters, on the other hand, will last 20 years and more than 20 years, respectively. Depending on the type of water heater, if the system is nearing the end of its life expectancy, it is time to replace it.

  • There are too many repair requests

If your tenants are always requesting that the water heater be fixed, it is time to replace it. A water heater that breaks down often can be very frustrating for your tenants and this may be the singular reason why a tenant leaves your rental property. Moreover, the cost of maintaining the system goes up in proportion to the number of repair requests.

  • It is not producing enough hot water

If the water heater is not producing sufficient hot water, there are two possible causes. It could be that the demand on the water heater exceeds its capacity. A water heater can only have 75% of its capacity as hot water. It could also be that the water heater has failed before its expiration date. The solution to both problems is to get a new water heater.

  • Unreliable hot water production

This is similar to the previous problem but a little worse. Here the water heater does not produce any hot water at all or it doesn’t produce enough. This is usually due to internal problems with the tank. Solving internal water heater tank issues is expensive. As a rule, if the cost of repairs is 10% of the replacement cost of the water heater, it is better to buy a new one.

  • The tank is leaking

Not all water heater leaks are caused by a leaky tank. Sometimes they are the result of leaks around the plumbing pipes, connector pipes, or valves. These types of leaks can be fixed at no great cost. But a leaky tank is a different story. The cost of the repair will often be more than 10% of the cost of a new water heater. If the tank is leaking, replace the water heater.

  • Excessively high energy bills

Even if a water heater doesn’t have any of the above problems, it should be replaced if it is using up too much power. Water heaters often lose efficiency as they get older and their energy use can increase, as a result. The cost of buying a new water heater will easily be recouped through the lower energy bills that the new water heater makes possible.

Important factors when buying a water heater for your rental property

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For landlords whose water heaters were manufactured before April 2015, there are few things to note when buying a new one. New guidelines require that water heater manufacturers make their units more efficient. This is a good thing, from the perspective of energy usage, but it also means the new systems are larger and more expensive.

More importantly, it means you may require additional space to install the water heater, if it was previously installed in a confined space, such as a closet or crawlspace. If you want to install the larger new water heater in the same area, you may need to retrofit the space. The alternative is to install a water heater with a smaller capacity.

In addition to the above, you have to think of what kind of fuel you want the water heater to use. If you previously had an electric-powered system, this may be a good time to switch to a natural- or solar-powered alternative. You should also take this opportunity to decide what kind of water heater is best for the rental. Should it be tankless, storage tank, heat pump, or combo heaters?

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