Best Hot Water System for Rental Properties

Choosing the best hot water system for a rental property depends on the property size, number of bedrooms, number of bathrooms, expected tenant demand, current system type, available energy source and replacement budget. For landlords and property managers, the best option is usually a reliable, correctly sized system that suits the existing setup and keeps the replacement process as straightforward as possible.

At Hot Water Outlet, you can compare hot water systems online, including electric hot water systems, heat pump hot water systems, gas hot water systems, instant gas hot water systems, instant electric hot water systems and common valves, pipework and fittings.

Quick Answer: What Is the Best Hot Water System for a Rental Property?

The best hot water system for a rental property is usually the one that matches the existing energy source, suits the number of occupants, fits the current location and can provide reliable hot water for the expected household size.

As a general guide:

• Choose an electric hot water system if the rental already has electric storage and a straightforward tank-style replacement is preferred.

• Choose a heat pump hot water system if the property has suitable outdoor space and the owner wants to compare efficient electric storage options.

• Choose a gas hot water system if the rental already uses gas storage and a traditional gas tank replacement suits the property.

• Choose an instant gas hot water system if the property has natural gas or LPG and continuous flow hot water suits the expected tenant demand.

• Choose an instant electric hot water system only for suitable point-of-use applications where the product and electrical requirements match the use case.

For rental properties, the best starting point is usually the current hot water system. If it has been reliable and correctly sized, a similar replacement can be practical. If tenants have complained about running out of hot water, slow recovery or poor performance, compare a better-sized system before ordering.

Why Rental Properties Need the Right Hot Water System

Hot water is essential in a rental property. Tenants expect reliable hot water for showers, bathrooms, kitchens and laundry use. A poorly chosen system can create complaints, urgent callouts, repeated maintenance issues or a replacement that does not suit the property.

For landlords and property managers, the right hot water system should be:

• Correctly sized for the likely number of tenants

• Matched to the existing energy source

• Suitable for the property layout

• Practical for the current system location

• Easy to compare by product specifications

• Available in the correct gas type if gas is used

• Supported by clear warranty information

• Compatible with required valves and fittings

• Suitable for licensed tradespeople to connect

The cheapest system is not always the best rental property choice. The best value option is the system that suits the property, avoids undersizing and supports reliable day-to-day use.

Hot Water System Options for Rental Properties

Each system type can suit a rental property when matched correctly. The right choice depends on the current setup, property size and expected tenant demand.

What Size Hot Water System Does a Rental Property Need?

The right size depends on the number of bedrooms, bathrooms and likely occupants.

A one-bedroom unit usually needs less hot water than a four-bedroom family rental. A two-bathroom townhouse may need stronger performance than a small one-bathroom apartment. A rental with a bath may need more stored hot water than a shower-only property.

When choosing the size, consider:

• Number of bedrooms

• Number of bathrooms

• Likely number of occupants

• Shower demand

• Bath use

• Kitchen hot water use

• Laundry hot water use

• Whether multiple outlets may run at the same time

• Current system size

• Whether tenants have reported hot water issues

• Current energy source

• Available space

• Product dimensions

• Recovery rate

• Flow rate for instant gas systems

Storage systems are measured by tank capacity in litres. This includes electric storage, gas storage and heat pump hot water systems.

Instant gas systems are measured by flow rate in L/min. They heat water as it flows through the unit instead of storing it in a large tank.

Best Electric Hot Water System for Rental Properties

An electric hot water system can be a practical choice for many rental properties, especially where the property already has electric storage installed.

Electric storage may suit a rental when:

• The current system is electric

• The property does not have natural gas or LPG

• A familiar tank-style replacement is preferred

• The existing location works

• The tank size suits likely tenant demand

• A straightforward replacement path is preferred

Electric hot water systems are usually compared by tank capacity, recovery rate, pressure rating, dimensions, connection positions and power requirements.

For a rental property, the main mistake is choosing a tank that is too small for the likely number of tenants. A small tank may be cheaper upfront, but it can lead to tenant complaints if hot water runs out regularly.

Electric Hot Water for Rentals: What to Check

Before choosing electric storage for a rental property, check:

• Current tank capacity

• Number of bedrooms

• Number of bathrooms

• Expected tenant demand

• Whether the current system ran out often

• Recovery rate

• Power requirements

• Product dimensions

• Connection positions

• Indoor or outdoor suitability

• Required valves and fittings

• Warranty information

If the existing electric tank has worked well for the property, a similar size may be a practical starting point. If the rental has regular hot water complaints, compare a larger tank or a different system type before ordering.

Best Heat Pump Hot Water System for Rental Properties

A heat pump hot water system may suit rental properties where the owner wants to compare efficient electric storage options and the property has a suitable location.

Heat pump hot water may suit a rental when:

• The property currently has electric storage

• Outdoor space is available

• Airflow is suitable

• Noise considerations can be managed

• The tank size suits likely tenant demand

• The owner wants an efficient electric hot water option

• The product dimensions fit the available space

Heat pumps need more location planning than standard electric storage. This is especially important in rental properties because the system needs to suit the property long-term, not just the immediate replacement.

Heat Pump Hot Water for Rentals: What to Check

Before choosing a heat pump for a rental property, check:

• Outdoor location

• Airflow around the unit

• Noise rating

• Distance from bedrooms, windows and neighbours

• Tank capacity

• Number of bedrooms and bathrooms

• Likely tenant demand

• Product dimensions

• Electrical requirements

• Connection positions

• Delivery access

• Warranty information

• Required valves and fittings

A heat pump can be a strong option where the property suits it, but it should not be chosen only because it is energy efficient. The location and household demand still need to match.

Best Gas Hot Water System for Rental Properties

A gas hot water system may suit a rental property that already uses natural gas or LPG and has an existing gas storage setup.

Gas storage may suit a rental when:

• The current system is gas storage

• Natural gas or LPG is already available

• A traditional tank-style replacement is preferred

• The selected tank size suits expected tenant demand

• The recovery rate is suitable

• The existing gas location works

Gas storage systems are usually compared by tank capacity, recovery rate, gas type, pressure rating, dimensions and connection positions.

For rental properties, gas type is critical. Natural gas and LPG systems are not interchangeable, so the correct model must be selected before ordering.

Gas Hot Water for Rentals: What to Check

Before choosing gas storage for a rental property, check:

• Natural gas or LPG

• Current gas storage tank size

• Number of bedrooms

• Number of bathrooms

• Expected tenant demand

• Recovery rate

• Product dimensions

• Connection positions

• Pressure rating

• Indoor or outdoor suitability

• Required valves and fittings

• Warranty information

If the property already has a gas storage system that has worked well, a similar replacement may be practical. If tenants often run out of hot water, compare a larger tank, better recovery rate or an alternative system type.

Best Instant Gas Hot Water System for Rental Properties

An instant gas hot water system can suit rental properties with natural gas or LPG where continuous flow hot water is preferred.

Instant gas may suit a rental when:

• Natural gas or LPG is already available

• The property currently has instant gas

• A compact wall-mounted unit is preferred

• The selected flow rate suits expected tenant demand

• A large storage tank is not ideal

• The correct gas type is chosen

• A suitable outdoor location is available

Instant gas systems are usually compared by flow rate in L/min. The right flow rate depends on the number of bathrooms, number of tenants and whether multiple outlets may be used at the same time.

Instant Gas Hot Water for Rentals: What to Check

Before choosing instant gas for a rental property, check:

• Natural gas or LPG

• Required flow rate in L/min

• Number of bathrooms

• Likely number of occupants

• Current system flow rate

• Whether the current system kept up with demand

• Controller compatibility

• Product dimensions

• Connection positions

• Outdoor location suitability

• Gas supply suitability

• Required valves and fittings

• Warranty information

A lower-flow instant gas system may suit some smaller rentals, but it may not suit a family-sized property or a rental with two bathrooms.

Best Instant Electric Hot Water System for Rental Properties

An instant electric hot water system can suit specific point-of-use applications in a rental property, but it is not automatically suitable for whole-home hot water.

Instant electric may suit:

• Compact point-of-use hot water

• A small localised hot water need

• Specific fixtures

• Small applications where storage is not practical

• Situations where the electrical requirements match the product

Before choosing instant electric for a rental, check whether the product suits the intended use. These systems can have specific electrical requirements and should not be treated as a universal replacement for a whole-home storage tank.

Best Hot Water System for a One-Bedroom Rental

A one-bedroom rental may only need a smaller hot water system if tenant demand is low. The best option depends on the current system and available space.

For a one-bedroom rental, compare:

• Compact electric storage

• Existing electric tank replacement options

• Instant electric for suitable point-of-use applications

• Instant gas where natural gas or LPG is available

• Heat pump only if outdoor space and airflow are suitable

If the existing system has been reliable and correctly sized, a similar replacement may be practical. If the property has had regular hot water complaints, compare a better-sized option.

Best Hot Water System for a Two-Bedroom Rental

A two-bedroom rental may need a small to medium system, depending on the number of occupants and bathrooms.

For a two-bedroom rental, compare:

• Small to medium electric storage systems

• Compact gas storage where already installed

• Instant gas where gas is available

• Heat pump options where the property has suitable space

• Required valves and fittings

A two-bedroom rental may have one occupant, a couple, or a small family. Size the system for likely use, not just the bedroom count.

Best Hot Water System for a Three-Bedroom Rental

A three-bedroom rental often needs a more capable hot water system than a small unit, especially if it has two bathrooms or is likely to house a family.

For a three-bedroom rental, compare:

• Medium to larger electric storage

• Heat pump systems with suitable tank capacity

• Gas storage with suitable recovery

• Instant gas systems with suitable flow rate

• Current system performance

• Number of bathrooms

• Likely tenant demand

If the current system has been too small, replacing it with the same capacity may repeat the same problem.

Best Hot Water System for a Four-Bedroom Rental

A four-bedroom rental may need to support a family or shared household. Hot water demand can be high, especially where there are multiple bathrooms.

For a four-bedroom rental, compare:

• Larger electric storage systems

• Larger heat pump hot water systems

• Gas storage with strong recovery

• Higher-flow instant gas systems

• Correct natural gas or LPG models

• Product dimensions and delivery access

A four-bedroom rental should not be undersized just to reduce upfront cost. A system that cannot keep up with demand may lead to repeated complaints.

Best Hot Water System for a Rental Unit

Rental units often have space constraints, body corporate rules and access considerations.

For rental units, compare:

• Current system type

• Available cupboard or outdoor space

• Number of occupants

• Number of bathrooms

• Existing energy source

• Body corporate rules

• Delivery access

• Noise restrictions

• Product dimensions

• Required valves and fittings

Electric storage is common in many units, but the best replacement depends on what is currently installed and what the building allows.

Best Hot Water System for a Rental Townhouse

Rental townhouses can vary widely. Some have internal cupboards, some have garages, and some have outdoor areas suitable for larger tanks or heat pumps.

For rental townhouses, compare:

• Current system type

• Available outdoor space

• Number of bathrooms

• Number of bedrooms

• Electricity, natural gas or LPG

• Heat pump airflow if relevant

• Instant gas location if relevant

• Delivery access

• Required valves and fittings

Townhouses may suit electric storage, heat pump, gas storage or instant gas depending on the property.

Best Hot Water System for a Family Rental

A family rental usually needs a stronger hot water system than a small unit. The system should suit the number of bedrooms, bathrooms and likely daily use.

For family rentals, compare:

• Medium to larger electric storage

• Heat pump systems with suitable capacity

• Gas storage with suitable recovery

• Instant gas with suitable flow rate

• Number of bathrooms

• Bath use

• Laundry use

• Peak morning and evening demand

For family rentals, correct sizing is more important than choosing the lowest-priced system.

Best Hot Water System for a Rental on a Budget

Budget matters for landlords, but the cheapest hot water system is not always the best value. A system that is too small or unsuitable may create more problems later.

Budget-friendly rental hot water tips:

• Start with the current system type

• Compare like-for-like replacements first

• Avoid unnecessary system changes

• Do not undersize the system

• Check current product pricing

• Check warranty information

• Check required valves and fittings

• Check delivery costs

• Confirm installation and connection costs separately

A like-for-like replacement can often be practical for rentals, but only if the old system type and size suited the property.

Like-for-Like Replacement for Rental Properties

A like-for-like replacement means choosing a new system similar to the existing one. This can be useful for rental properties because it may reduce complexity.

Like-for-like may suit if:

• The old system worked well

• The tenant demand has not changed

• The property layout has not changed

• The same energy source is available

• The existing location works

• The current tank size or flow rate is suitable

Common like-for-like replacement paths include:

• Electric storage to electric storage

• Gas storage to gas storage

• Instant gas to instant gas

• Heat pump to heat pump

A like-for-like replacement is not always the best option. If the old system was too small or unreliable, compare better-sized alternatives before ordering.

Upgrading a Rental Property Hot Water System

An upgrade may be worth considering if the current hot water system no longer suits the property.

You may want to compare an upgrade if:

• Tenants often run out of hot water

• A bathroom has been added

• The rental now houses more occupants

• The current system is old and unreliable

• You want to compare heat pump efficiency

• You want to change from gas storage to instant gas

• The current unit is oversized or undersized

• Renovations are changing the property layout

Changing system type can involve extra plumbing, gas or electrical work, so it should be assessed properly before ordering.

Heat Pump vs Electric Storage for Rental Properties

For rentals with existing electric storage, the main comparison is often standard electric storage versus heat pump hot water.

Choose electric storage if you want a familiar replacement and the existing setup works well. Compare heat pump if the property has suitable outdoor space and the owner wants an efficient electric option.

Gas Storage vs Instant Gas for Rental Properties

For rentals with gas, the main comparison is often gas storage versus instant gas.

Choose gas storage if the existing gas tank setup works well. Compare instant gas if continuous flow hot water and a compact wall-mounted unit suit the property.

Rental Property Hot Water Brands to Compare

Hot Water Outlet lists recognised brands across electric, gas, heat pump and instant gas categories.

Depending on the property and system type, landlords and property managers may want to compare:

• Rheem hot water systems

• Rinnai hot water systems

• Dux hot water systems

• Bosch hot water systems

• Vulcan hot water systems

• iStore hot water systems

• Stiebel Eltron hot water systems

• Envirosun hot water systems

• Emerald Energy hot water systems

Brand can help narrow the search, but the final decision should be based on system type, capacity, flow rate, gas type, dimensions, warranty information and property suitability.

Valves, Fittings and Accessories for Rental Hot Water Systems

A rental property hot water replacement may require more than the main unit. Depending on the system type, pressure rating and connection layout, extra valves, fittings or pipework may be needed.

Common items include:

• Tempering valves

• Pressure relief valves

• Duo valves

• Non-return valves

• Isolation valves

• Copper pipework

• Fittings

• Controller accessories

• Thermostats

• Elements

• Connection parts

Hot Water Outlet has a dedicated range of valves, pipework and fittings to help customers compare common hot water accessories.

Always confirm compatibility before ordering.

Common Mistakes When Choosing Hot Water for a Rental Property

Choosing the Cheapest System Only

A cheap hot water system may not suit the rental if it is too small, the wrong gas type, the wrong flow rate or unsuitable for the property.

Replacing With the Same Size Without Checking Complaints

If tenants have complained about running out of hot water, replacing with the same size may repeat the issue.

Ignoring the Number of Bedrooms

A larger rental may house more people. The hot water system should suit likely occupancy, not just the old system size.

Forgetting Gas Type

Natural gas and LPG systems are not interchangeable. Always confirm the correct gas type before ordering.

Choosing Heat Pump Without Checking Location

Heat pumps need suitable outdoor space, airflow and noise consideration. Not every rental property suits a heat pump.

Choosing Instant Gas With Too Low a Flow Rate

Instant gas systems need to be matched to the number of bathrooms and likely tenant demand.

Forgetting Valves and Fittings

The main unit may not be the full order. Valves, pipework and fittings may also be required.

Assuming DIY Is Suitable

Hot water systems involve plumbing, gas and electrical work. These tasks should be completed by licensed tradespeople.

Rental Property Hot Water Buyer Checklist

Before ordering a hot water system for a rental property, check:

• Current hot water system type

• Current brand and model

• Current tank size or flow rate

• Whether tenants have reported hot water issues

• Electricity, natural gas or LPG

• Number of bedrooms

• Number of bathrooms

• Likely number of occupants

• Shower demand

• Bath use

• Kitchen hot water use

• Laundry use

• Desired system type

• Tank capacity if storage

• Flow rate in L/min if instant gas

• Recovery rate

• Product dimensions

• Connection positions

• Heat pump airflow if relevant

• Heat pump noise rating if relevant

• Gas type if choosing gas

• Power requirements

• Required valves and fittings

• Delivery access

• Warranty information

• Product specifications

Can Landlords Buy Hot Water Systems Online?

Yes. Landlords and property managers can compare and order supply-only hot water systems online through Hot Water Outlet.

Before ordering, check:

• Current system details

• Energy source

• Gas type if relevant

• Tank size or flow rate

• Product dimensions

• Connection positions

• Required accessories

• Delivery access

• Warranty information

Hot Water Outlet sells supply-only hot water systems and accessories online, and may help organise quotes from reputable installers where appropriate. Installation, plumbing, gas fitting and electrical work should be handled by appropriately licensed tradespeople.

Compare Hot Water Systems for Rental Properties Online

Hot Water Outlet makes it easier to compare hot water systems for rental properties by type, brand, size, energy source and product specifications.

Start with:

• Hot Water Systems

• Electric Hot Water Systems

• Heat Pump Hot Water Systems

• Gas Hot Water Systems

• Instant Gas Hot Water Systems

• Instant Electric Hot Water Systems

• Valves, Pipework and Fittings

FAQs About Hot Water Systems for Rental Properties

What is the best hot water system for a rental property?

The best hot water system for a rental property is one that matches the existing energy source, property size, number of bathrooms, likely tenant demand and replacement setup. Electric storage, heat pump, gas storage and instant gas can all suit different rentals.

What size hot water system does a rental property need?

The right size depends on the number of bedrooms, bathrooms, likely occupants and daily hot water use. Storage systems are measured by tank capacity in litres, while instant gas systems are measured by flow rate in L/min.

Is electric hot water good for rental properties?

Electric hot water can be a practical option for rentals that already have electric storage or no gas supply. The tank size and recovery rate need to suit likely tenant demand.

Is heat pump hot water good for rental properties?

Heat pump hot water can suit rental properties with suitable outdoor space, airflow and noise conditions. It may be worth comparing when replacing old electric storage, but the property must suit the product.

Is instant gas hot water good for rental properties?

Instant gas can suit rentals with natural gas or LPG where continuous flow hot water is preferred. The flow rate must suit the number of bathrooms and expected tenant demand.

Should a landlord replace hot water with the same type?

Replacing with the same type may be practical if the old system worked well and the property demand has not changed. If tenants have had hot water issues, compare a better-sized system before ordering.

What is the best hot water system for a four-bedroom rental?

A four-bedroom rental may need a larger electric storage system, larger heat pump, gas storage with good recovery or higher-flow instant gas system. The right choice depends on energy source, bathrooms and expected tenant demand.

Do rental hot water systems need valves and fittings?

Some rental hot water replacements require valves, pipework or fittings depending on system type, pressure rating and connection layout. Browse valves, pipework and fittings and confirm compatibility before ordering.

Can a landlord install a hot water system themselves?

No. Hot water systems involve plumbing, gas and electrical work that should be completed by appropriately licensed tradespeople. Hot Water Outlet sells supply-only hot water systems and accessories online, and may help organise quotes from reputable installers where appropriate.

What should landlords check before buying a hot water system online?

Landlords should check current system type, tank size or flow rate, energy source, gas type, number of bedrooms, bathrooms, likely tenant demand, dimensions, connection positions, warranty information, required accessories and delivery access.

Find the Best Hot Water System for Your Rental Property

The best hot water system for a rental property is the one that suits the property, tenants, energy source, available space and replacement setup. Before ordering, compare tank capacity, flow rate, gas type, recovery rate, dimensions, connection positions, warranty information and required accessories.

Browse hot water systems online with Hot Water Outlet to compare electric, heat pump, gas, instant gas, instant electric and hot water accessories by brand, size and product specifications.