I have a single family home that I am currently renting out. I can have a maximum of 4 people living there. The hot water uses in the house are as follows: bathroom (sink and shower), kitchen (sink and dishwasher), and laundry room (washing machine). The last couple of years I have been covering the utlities (up to a certain amount), so I am trying to find a way to make the place more efficient and lower the utility bills.

I have also been hearing complaints the last 2 years that the hot water doesn't last long in the house (the current water heater is a 40 gallon electric). So I have been thinking about upgrading this water heater. What do you think about a tankless water heater (electric not gas)? Would this be a suitable application for one? How long would it take to see a return on my investment? What would the estimated monthly saving be?

Any suggestions are appreciated. Thanks!

A tankless water heater that can handle this size load is going to run about $1100 plus installation. Some brands make you use their install guys and do not allow DIYers. What are your electric rates, electric is usually not synonymous with cost efficiency.

I have a single family home that I am currently renting out. I can have a maximum of 4 people living there. The hot water uses in the house are as follows: bathroom (sink and shower), kitchen (sink and dishwasher), and laundry room (washing machine). The last couple of years I have been covering the utlities (up to a certain amount), so I am trying to find a way to make the place more efficent and lower the utility bills.

I have also been hearing complaints the last 2 years that the hot water doesn't last long in the house (the current water heater is a 40 gallon electric). So I have been thinking about upgrading this water heater. What do you think about a tankless water heater (electric not gas)? Would this be a suitable application for one? How long would it take to see a return on my investment? What would the estimated monthly saving be?

Any suggestions are appreciated. Thanks!

Given how this is a rental property, I'd recommend installing a larger capacity electric H/W tank over an electric or gas fired tankless heater.

Providing a never ending supply of hot water is going to lead to longer showers, which is going to increase your overall utility bill.