Which would you choose? We have a small house that we are completely gutting. We will be changing the floor plan, redoing the plumbing and updating the electrical, so we can choose either gas or electric for the appliances. Pros: • Gas: Cheaper for the tenant, and we have found them more reliable than electric. • Electric: Cheaper for us, installation is simpler, no pilot light. Cons: • Gas: Unit is a little more expensive to purchase, requires a vent, sometimes pilot lights can be an issue. • Electric: More expensive for the tenant. What say you?

I once had a renter tell me that she was allergic to the smell of the gas appliances, so we opted for electric. I later found out that she owed money to the gas department and her allergy was more likely that she was allergic to paying the bill.

There are gas units that do not have a pilot light - they have an electronic ignition. Some good reading: http://www.citizensenergygroup.com/pdf/ProductGuides/waterheaters.pdf

I cringe whenever I see a propane tank. If your choice is propane vs. electric, I would go electric. If natural gas is available, I would go with that for the water heater as well as furnace, oven, and clothes dryer.

Metal vent pipe to go through the roof is most likely double or triple wall pipe, which is not cheap and can rust out eventually. Check your building code for what is required. A power vent water heater can use PVC through the sill so the vent is cheaper but the unit is much more expensive. I buy to hold long term which is why I do it my way. I am thinking about tomorrows expenses too

In rentals that I am not paying for utilities, it is a no-brainer - electric every time. With gas (or propane) you need a chimney for gravity vent units, that means you now have to properly maintain the chimney and possibly install a liner, repair masonry, etc. You COULD go with a power vent water heater, but that adds a few hundred dollars to the initial cost and the inducer may very well kick the bucket before the tank rusts out. By the time that happens, it will make more sense to replace the whole thing versus just the inducer. Inducer is a couple hundred dollars, elements for an electric unit are less than $ 30 with tax. Electric water heaters are cheaper and in my experience, tenants really don't care. They are much more sensitive to electric HEAT than they are to electric water heat. For furnaces, I would lean toward gas/propane with a 90+ rating which has the power vent. The reason for that shift in argument is because this is much more likely to make a difference to the tenant AND going to the power vent eliminates the need for chimney maintenance. Homes in my area tend to be older, meaning the chimneys are in need of repairs or will soon. Chimney penetrations in the roof are future leaks. I make these changes to the mechanicals in preparation for being able to abandon or tear down the chimney so that I no longer have to maintain it. Price a chimney repair or liner and the numbers quickly make sense. Add in a future roof repair and possible water damage from the leak and they really make sense. If I am the one paying the utilities, then I probably would consider a power vented gas/propane water heater in lieu of electric because it makes a difference in my operating expenses. I go with a power vent furnace in every instance simply to prepare to eliminate the chimney now or in the future.

I agree with researching your market and your renter demographic. On rehabs I'll usually keep the type that was already there, or match it to the furnace/heat pump. I always thought gas was better for the reasons you listed, but then found that with a Section 8 rental it was seen as a negative by many, because it was an extra upfront deposit that the renter had to pay.

We will be able to get natural gas, so we'll go with that for the furnace and possibly the stove. The water heater is still undecided, but gas dryers are virtually unknown here.

Ha! That's a good one @Bryan L.

Although I have a gas dryer in my own home, none of my rentals with gas have a gas dryer. I don't even have piping set up to feed gas into the laundry area to support a gas dryer. Gas dryers are usually special order, while electric dryers are available on next day delivery. Even used dryers are mostly electric. So no gas dryers in my rentals.

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Updated almost 11 years ago on 03/21/2014. Most recent reply

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Sylvia B.Poster

Rental Property Investor
Douglas County, MO

Rehabbing & House Flipping

Electric or gas water heater?

Sylvia B.Poster

Rental Property Investor
Douglas County, MO

Posted March 06, 2014 20:55

Which would you choose?

We have a small house that we are completely gutting. We will be changing the floor plan, redoing the plumbing and updating the electrical, so we can choose either gas or electric for the appliances.

Pros:

Gas: Cheaper for the tenant, and we have found them more reliable than electric.
Electric: Cheaper for us, installation is simpler, no pilot light.

Cons:

Gas: Unit is a little more expensive to purchase, requires a vent, sometimes pilot lights can be an issue.
Electric: More expensive for the tenant.

What say you?

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