8-10 years is a minimum life expectancy for a decent tank, not a max... we replaced our last one in year 17. Paid nowhere near $800 for the replacement. Where I live, (northern Ohio, USA) the numbers would never add up.

20% lower gas and heating costs add up for me - that's compared to another property I rent out, which is 850 sq/ft smaller and has a water tank and forced air for heat.

I guess the laws of Physics work differently in Ohio. A 17 year old tank is antique by industry guidelines, (you probably have an electric unit) I'd have a good plumber on standby if I was you.

Gas unit. I don't know anybody who's had to replace one after only 10 years. I agree 17 years is typical EOL, which is why we replaced it.

Just for fun, I did some half-assed calculations. Our gas bill in the summer months (furnace not operating) is about $30. We have gas water heater, dryer, and oven. All are used regularly. Assume gas use is equal, so the price to heat water is $10 per month. Gas tank heater is about $500. Tankless is about $1500. If the tankless uses half the gas, savings = $5 per month. Number of months needed to recoup the $1000 difference = 200 (16.67 years). Approximations, to be sure, but I'm not seeing any big savings.

Once again, such arguments have played out thousands of times on various forums. Anybody who wants one of these gadgets can go right ahead. They do make sense if space is extremely limited. I have a large basement, and barely notice a 40 gallon tank.

Wimp. You only have a 40 gallon tank?

Mine's 50 US, and rented at (let me check), C$12/month.

When the last one I had sprung a leak, it was replaced for free.

So, yah, boo.

Well thats good, you must have good water, and you probably would be better off as you are. A 40 Gallon tank is kinda small for a family though.

Our water's direct from Lake Erie... whether that's good is a matter of opinon

You and Novo are correct, 40 gal is on the small side. There's just the two of us, though, so it's enough.

Well, I guess we will have to agree to disagree -- like lots of things - what one person thinks is the best thing since sliced bread - the next thinks its the worst!!

Hmm, a whose got the biggest thread.

Well, I have no idea of the size but its cream coloured, electric and rented. $9a month.

Interesting concept renting hot water heaters, good little money maker for whoever is renting them out.

I don't think this is possible in Alberta and B.C. at least I have not heard of anyone renting them.

As an aside a lot of people don't realise that the capacities of virtually all hot water tank type heaters are in U.S. gallons so your 40 gallon tank is in effect only 33 imperial gallons.

Ours is 180 litres, which is 39.6 imperial gallons 46.8 US gallons

And we don't rent it we own it. MOH has no professional opinion on which is better....

Considering cost of replacement tank on average is between $400 - $600 and they last again on average ten years.

Rental costs according to Novo $144 per year or $1,440 over ten years.

I'll stick with buying mine thanks, although it seems I have no choice anyway.

I think its the hassle free side that's good with rental. The rental company does all the installation, repairs etc. Ours is new, well 1 year old, so we have a while before we have to replace it.

Tankless or tank depends on the size of the household.
Tankless are great for single people or maybe a couple but do not work so well for a family when you start adding in the demands of washing machines and dishwashers and teenagers.

Our water heaters were replaced last year and have a vacation setting so we can turn them right down when we are away without the hassle of relighting them. We have 2 and I don't know what size they are as they're in the basement and I'm upstairs with the cat on my lap.

You're probably right. The tank in the house was rented when we moved in and I'm a lazy SOB. The upside though is "free" maintenance and replacement.

IIRC Oakvillian rents his furnace by a similar scheme.