Water heating is a costly, both in a residential areas and in commercial environment. These costs are further exacerbated by leaks and other maintenance issues that compromise a water heater's efficiency. That's why homeowners and building managers alike should keep a close eye on the day-to-day performance of their water heaters. Locating a faulty water heater sooner than later will help to bring down monthly utility costs and improve the energy efficiency of an entire building.

Improper sizing
Sizing water heaters to meet the demands of a home or building is essential, according to This Old House. Efficiency problems will arise if a heater is not fit to meet a building's peak-hour demand. Often homeowners and building managers take for granted that their water heaters are properly sized, and overlook a probable cause for their plumbing system's efficiency problems. Thankfully, this problem can be resolved as easily as purchasing a new water heater or upgrading to a compact tankless model.

Delayed performance
Faucets left running while someone waits for hot water is a common source of water waste. Long latency times for hot water is also a sign that a water heater is no longer performing up to par. Alternatively, lengthy latency may indicate that a building's water heater is too far from the point of use in question. Tankless water heaters can be used to resolve this issue as a temperature booster installed near the point of use, eliminating the need to replace your existing water heater.

Proof of sediment
Metallic sediment is prone to collecting inside water heater tanks, especially in areas with hard water. The presence of scale on a water tank's heating element or the sounds of popping noises are also indicators of a tank weighed down by sediment, according to American Family Insurance. Building managers and homeowners can address this issue by hiring a maintenance person to empty and flush the entire tank. Alternatively, tankless water heaters are designed to prevent sediment build up and remove the need for flushing. Going tankless can reduce the cost of running your water heater and maintaining the appliance simultaneously.

Escalating energy bills
Even regular maintenance can't prevent a water heater from slowing down over time. The service life of most traditional water heaters is 10 to 15 years, and the appliances are much more susceptible to leaks and heat loss as they advance in age. Typically it is more cost-effective to upgrade a water heater than to let it run until it shuts down. Maintenance for an older water heater will only become more expensive as the the appliance continues to age.