water tank inside the apartment or basement?

[Erod R.]

Hi Everybody,  

i am doing rehab on a building i bought in philadelphia, pa. the building has 3 floors where the first floor is  a store, 2nd floor there are two studios and 3 floor also two studios.  i only see one water tank on the basement for the store but not sure if previous owner remove the others for the studio apartments.  i have a contractor doing the renovation and he was thinking of putting the water tank on each apartment in a small closet.

i seen this before but i am concern that if the tank breaks or leaks then a lot of water may go other apartments and damage them. contractor said you can check them for corruption once in a while etc.  my question is:  should water tank be place in the basement or is it safe to have them in the apartment?  by having them in basement, contractor say it may cost additional $3000(maybe little more) because you have to run the lines, additional material and so on.