One of the most common appliance costs that come up is the replacement of your property's water heater. Standard tank units come in 30, 40 and 50 gallons. Manufacturer's warranties range from 3 to 9 years depending on the brand and individual model. On average, the most common manufacturer warranty we see is 6 years. Most manufacturers list their appliance’s useful lifespan as 10 years and warranties cover parts only as a vendor's labor fees are the owner 's responsibility. This beckons the question… at what point should the unit be repaired or replaced? This can be tricky to answer as not only should the cost of repairing or replacing the unit be considered, but also the effect it has on the resident which can translate in costs to the owner. In this blog, I will go over the average costs to repair or replace, as well as the pros and cons of both. But first, I will talk about the "resident factor" and why it is important to address any water heater-associated maintenance as quickly and efficiently as possible.
THE RESIDENT FACTOR
Habitability is an important component when dealing with maintenance issues of an rental property. In the state of California, having hot water is one of the items listed as a resident's rights to a habitable rental home. Meaning, if there is no hot water, the resident has a right to the prorated rental amount on a per day basis. In general, when it comes to resident's rights the law heavily favors residents. An owner or property manager needs to do their very best to address these types of maintenance issues efficiently, as well as work with residents in keeping good faith, professional relationships and open, reliable communication. This goes a long way in keeping all parties amenable and, to a point, patient while we come up with solutions. Having said that, any delays can be costly. For example, on a $4,000 a month rental income, the daily rental cost is approximately $134 per day that the resident could be entitled to (Calculated as $4,000 / 30 = $133.33). Besides the daily cost, a factor that should be considered is the resident's trust and confidence level in knowing they live in a place where management and owners work together in solving these important problems. Residents that are comfortable and have high trust are more likely to renew their lease. For this reason, water heater related work orders and other habitability-type maintenance items are high priority items that we address the same day or, at the most, within one day.
REPAIR
If the unit is under manufacturer's warranty, the parts will be covered but the service call and/or labor is the owner's responsibility. Most repairs have to do with the electronic components or the nipples / stems that attach to the property's plumbing.
PROS
Repairs can be more cost effective.
Many times, a licensed plumber or a handyman (a handyman is usually more cost effective if they have the know-how) can make repairs.
Repairs can increase or surpass the unit's useful lifespan.
CONS
Ordered parts that are not readily in stock can take multiple days to arrive.
Repairs may last a week, a month or a year and most of the time come without warranty. If the parts happens to be under warranty within that time, the vendor will still submit an invoice for labor (assuming it is not due to faulty installation) and we continue to disturb the resident's sense of habitability. If it is no longer under warranty, then the cost of repair and of a new unit install was accrued, costing the owner more money than replacing it in the first place.
About 50% of the time once one thing goes wrong another thing follows within months, if not weeks. This applies to almost all appliances.
Even if an appliance is under warranty, parts are not always readily available. Many times, aftermarket "universal" parts do not work or only work for a short period. A manufacturer may reimburse a portion of the unit, taking account of the unit's depreciation. This also can take a long time.
REPLACE
There are several options when replacing your water heater. We recommend replacing a water heater if the manufacturer's warranty has expired which is usually between 6 and 9 years old. If there is a breakdown after the 10+ year mark, we urge owners to replace the unit. There are two price point options we suggest. I have listed starting prices… however, it is important to note that installation prices vary depending on the condition and positioning of the plumbing that leads to the house and on the location of the water heater. If the plumbing is compromised, there will be costs to repair the plumbing. Positioning of plumbing has to do with custom or water heaters of unusual size. Finding water heater to replace these kinds of units can take a lot of time to find and order and are usually more costly than standard sizes and configurations. It may be more cost effective to reconfigure the plumbing to accommodate a standard size unit. Location of an installation is the most common cause of a price increase. There will likely be an addition charge to replace a water heater that is located in a small closet inside the properties living area or in an attic or basement.
OPTION 1: When it comes to water heaters, the brand Bradford White is the gold standard and is what we recommend. As of 2025 standard tank units start at $2,100 and go up from there. General pricing includes the removal and disposal of the existing water heater as well as installation of the new one along with any taxes. The manufacturer, Bradford White, only sells its products through a licensed plumber.
Pros
Only available through a licensed plumbers. These vendors warranty their work and can address plumbing problems that may come up during install, such as faulty or corroded pipes.
Through our combined experience with several vendors, these units have been the most reliable and most likely to exceed the 10-year mark.
Parts are almost always immediately available.
Cons
A higher up-front investment. However, these units are the most cost effective over time.
Most handyman vendors (usually more cost effective than a plumber) do not have access to purchase these units.
Custom or unusual sizes are available but come at a much higher price point.
OPTION 2: The brand Rheem can be found at your local Home Depot. Between labor and material, standard tank units start at $1,200. General pricing includes the removal and disposal of the existing water heater as well as installation of the new one along with any taxes.
Pros
These units are most cost effective.
Handyman vendors have access and can install them.
Units are readily available at Home Depot and other home improvement stores.
Cons
Our combined experience with several vendors indicates that a service repair call is more likely to be made within the 6-year mark.
Parts are not easily accessible. Within the 6-year mark, it has been our experience that parts are discontinued and/or unavailable.
Aftermarket "universal" parts do not always work. Therefore, multiple service calls may necessary.
CONCLUSION
Our goal is to make sure you have as much information as possible to make the best-informed decision to come up with a solution that lasts but also fits your needs and provides you the most value.
