Gas v. Electric Water Heater in Rental

General Landlording & Rental Properties
14yFollow

Gas v. Electric Water Heater in Rental

Joey Fontenot III
Real Estate Investor · Mobile, AL · Member since 2010 · 46 posts · 2 votes

Hey Guys

I am looking at purchasing a rental and was curious whether you guys preferred a Gas or an Electric Water Heater. I have read that the Gas Water Heater has cheaper monthly cost because it is easier to heat up the water, but the Electric water heater is a safer, more modern route.
If you were trying to install one into a rental which route would you choose to protect yourself and pick the longest lasting tank, that would be money well spent

Thanks

0Reply
55 views

Most Popular Reply

Ed O.
Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
14y

There's a lot of threads on this:

Gas: unit costs more, cheaper to operate, more likely to fail, less reliable (IMO).

Electric: More expensive to operate, more reliable, easier install, no venting.

For me, all things equal, me not paying the utilities, I would go with electric.

2Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Ed O.
    Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
    14y

    There's a lot of threads on this:

    Gas: unit costs more, cheaper to operate, more likely to fail, less reliable (IMO).

    Electric: More expensive to operate, more reliable, easier install, no venting.

    For me, all things equal, me not paying the utilities, I would go with electric.

    2Reply
  • Bienes Raices
    Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
    14y

    Another thing that someone pointed out to me when I was asking a similar question: if the tenants have bad credit they may get stuck having to put down two deposits, one for gas and electric. Also some people stated that tenants prefer just receiving one bill.

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    14y

    Well, if the tenants pay the utilities then who cares about the cost of usage. electric is easier to repair and maintain.

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
    0Reply
  • Kelvin Washington
    Investor · Locust Grove, GA · Member since 2011 · 40 posts · 4 votes
    14y

    When I purchased my rental in Spring 2010, I replaced the gas water heater with a brand new electric one. It didn't take my plumber long to install it and its been working like a charm!!

    0Reply
  • Joey Fontenot III
    OP
    Real Estate Investor · Mobile, AL · Member since 2010 · 46 posts · 2 votes
    14y

    Thanks Guys it sounds like Electiric is the way to go, but if a Gas one is already in there, it shouldn't be pulled out automatically and replaced until it gives out on you
    I was also wondering whether you guys preferred your house to be all electric or a mix of gas and electric? Obviously it is cheaper for the tenant to have to only pay one deposit and bill to the power company.

    0Reply
  • Kelvin Washington
    Investor · Locust Grove, GA · Member since 2011 · 40 posts · 4 votes
    14y

    Well, my rental is a mixture of gas and electric. I put in a electric stove and electric water heater, but the furnace is still gas. My tenants were aware of the utilities and they had no problem getting everything connected. Depending upon the utility company, the deposit my be credited or refunded at the end of the contract.

    0Reply
  • Don Hines
    Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
    14y

    I am in the habit of pulling the gas heaters out and replacing with electric in my rehabs. It gives the inspectors less issues to write up.
    In my current rehab, the gas heater flue ran up the service wall which was between the kitchen and master bath. I was in there for other purposes and notices the flue was duct taped together over forty years ago. The tape was deteriated to the point to where carbon monoxide had to be escaping throughout the wall and into the attick at the least. I feel there was a potential for big problems in the future if it was left as is.
    I just feel better with the electric heaters.
    Don

    0Reply
  • Bob Hines
    Real Estate Investor · StL, MO · Member since 2008 · 294 posts · 152 votes
    14y

    If you're replacing, go with electric. Gas is common around here and tenants go crazy for all electric places. Units will rent faster and at higher rates.

    The gas company is also getting strict on having flue liners which is at least $400 just to line the flue so it may be cost effective to put in a brand new electric HWH instead of paying for a liner and still having an old tank. Furnance will be a more of a toss up with the liner, depends on the age. Check your gas bill, here it costs $20/month just to have the gas on, even if you don't use any gas. When you go to sell, around here you need an inspection from the gas company which costs $150.

    Everything adds up for a move to electric so I will be doing that as things go out or I get hit on a flue liner.

    0Reply
  • Just Don
    Member since 2009 · 499 posts · 117 votes
    14y

    on my new reno I opted to go electric because space for flue thru roof just not there, plus those side wall vented gas, just expensive.

    On a related note, having NO chimneys thru the roof will result in much lower utility cost. Chimneys are worse wasters as they flue hot air out 24/7/365. So a hi eff. furnace vented with 2" pvc plastic pipe saves alot plus so easy on gas bills. Electric heat is considered expensive here, dont know for sure. A small house with insulation and newer furnace will heat for about 125 bucks a month max. in coldest month and less as its warmer with gas.

    0Reply
  • Ryan Aydelott
    Flipper · Chicago, IL · Member since 2012 · 24 posts · 8 votes
    14y

    I would always use electric if given the option and it's a rental. Personally, I prefer gas - but of course that's for my own home.

    0Reply
  • Jimmy H.
    Lexington, KY · Member since 2010 · 315 posts · 133 votes
    14y

    If you already have gas, use gas - it is more efficient and cost less to operate (if you are paying the utilities). Plus you avoid the potential cost of pulling a new line to service the electric one.

    If you already have electric, i'd stay with electric.

    0Reply
  • George P.
    Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    14y

    did not read all the replies, but stick with whatever's already there. why?

    if there's gas currently in there and you want electric, you have to run 240v and plug the vent hole. it will cost you more.

    if you have electric and want gas, you have to have a stainless steel exhaust and get the gas line there. it will cost you more.

    moral of the story - replace it with exactly what you have now. it's the cheapest way to go.

    0Reply
  • Kevin PolitePro Member
    Investor · Decatur Atlanta, GA · Member since 2011 · 610 posts · 232 votes
    14y

    On a mid-level remodel we put in a gas tankless water heater on the outside so we didn't have to worry about venting. it created space for an extra closet which was a big factor in this area because most rental houses in that area didn't have much storage. Secondly, it appealed to a more upscale tenant because it was considered "green." But I think only works in an area where you can charge more rent.

    0Reply
  • George P.
    Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    14y

    unless you are up north. then you "cant" mount it outside. at least it's not "recommended" to anyway.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free