Homeowner’s Essential Guide to Water Heaters (2025 Edition)

Vince from Austin property Doctors. www.austinpropertydoctors.com

When we do a home inspection we will identify and visually inspect the water heater. Here are some things to Know.

1. Know What you have

Examples

Tank (Storage) | Gas / Electric | Cheap upfront, familiar | Wastes energy on standby | 8–12 yrs | $900–$2,200 |

Tankless (On-Demand) | Gas / Electric | Endless hot water, 30% more efficient | High install cost, flow limits | 20+ yrs | $2,500–$5,500 |

Heat Pump (Hybrid) | Electric | 3–4× more efficient than standard | Needs 7 ft clearance, slower recovery | 10–15 yrs | $2,000–$4,000 |

Solar | Sun + backup | Near-zero operating cost | Weather-dependent, roof work | 20+ yrs | $6,000–$10,000+

Note: if system also heats home it is more complex.

2. Red Flags = Time to replace (Don’t Wait for a Flood)

| Symptom | What It Means | Action |

|--------|---------------|--------|

| Rusty water (from hot side only) | Tank corroding inside | Replace within 1–2 months |

| Popping / rumbling noises | Sediment buildup | Flush or replace |

| Leaking around base | Tank failure | Emergency replacement |

| No hot water (gas) | Pilot out or bad thermocouple | DIY relight or call pro |

| No hot water (electric) | Bad element or thermostat | Test with multimeter |

Pro Tip: If your tank is 10+ years old, start budgeting. Most fail at 12.

3. Maintenance Checklist (Do Annually and possibly Double Lifespan)

| Task | How | Tools |

|------|-----|-------|

| Flush tank | Open drain valve, run 2–3 gal until clear | Hose, bucket |

| Test T&P valve | Lift lever → water should spurt | None |

| Check anode rod | Unscrew from top (every 3 yrs) | Socket wrench |

| Lower thermostat to 120°F | Prevents scalding + saves 5–10% energy | Screwdriver |

Anode Rod Hack: Replace with powered anode ($150) → never replace again.

4. Code & Safety Must-Knows (Avoid Fines or Fires)

- Expansion tank required (closed water systems) 

- Drip pan + drain line under tank if indoors/upstairs 

- Gas units: 18" elevated base in garages 

- Seismic straps (2) in earthquake zones 

- CO detector within 15 ft of gas units

5. Energy Savings (Cut Bills 20–50%)

| Set to 120°F (not 140°) | –10% |

| Insulate tank + first 6 ft of pipes | –5–9% |

| Install low-flow showerheads (1.5 GPM) | –25% hot water use |

| Add timer (electric) or recirc pump + timer | –15% |

6. Replacement Roadmap (Don’t Get Ripped Off)

1. Get 3 quotes (include haul-away of old unit) 

2. Ask for EF/UEF rating (higher = better efficiency) 

3. Check rebates: 

   - Federal tax credit: up to $600 (heat pump) 

   - Local utility: $100–$500 

4. Permit required? Yes in most cities (contractor pulls it) 

5. Warranty: 6–12 yrs on tank, 1 yr labor

## 7. Quick Troubleshooting 

| Problem | DIY Fix |

|---------|--------|

| Water too hot | Lower thermostat |

| Not enough hot water | Increase temp or flush sediment |

| Pilot won’t stay lit (gas) | Replace thermocouple ($15) |

| Breaker trips (electric) | Test elements; replace bad one ($30) |

## Bottom Line Checklist

- [ ] Know your tank size & age (sticker on side) 

- [ ] Flush every 12 months 

- [ ] Replace anode rod every 3–5 yrs 

- [ ] Budget $1,500–$3,000 every 10–12 yrs 

- [ ] Call pro if: leak, rust, or no heat

Free Tool: Take a photo of your water heater label → upload to HomeAdvisor or Angi for instant model lookup + lifespan estimate.