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How to Reduce Hot Water Bills in Rental Homes

Brian Lee BurkeBrian Lee Burke
Jun 21, 2026 6 min read
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How to Reduce Hot Water Bills in Rental Homes

Hot water bills can be difficult to manage when rent and everyday expenses already take up most of your budget. In a rental home, you may already be trying to save money by taking shorter showers, washing clothes in cold water, or being careful with daily water use.

Even with those habits, the bill can stay high when the hot water system is aging, or not sized properly for the number of people in the property. This guide explains what you can do as a tenant, which hot water problems to report early, and when to ask your property manager to arrange a plumber.

Why Hot Water Bills Rise in Rentals

A homeowner can choose when to replace an old unit, upgrade to a more efficient system, or book repairs directly. As a tenant, you need to report the problem and wait for the property owner or property manager to approve the repair. Common rental hot water problems that affect running costs include: 

Issue 

How It Affects Your Bill 

Changing household demand

The system works harder when demand exceeds what it was originally sized to handle.

Insufficient system capacity 

An undersized unit reheats more often during peak use, increasing energy consumption and causing inconsistent hot water supply.

Ageing or inefficient hot water unit 

Lose efficiency as parts wear & insulation performance drops, causing the unit to use more energy to heat the same volume of water.

Valve wear and minor system leaks 

Worn valves, leaking taps, or overflow discharge waste heated water, forcing the system to use extra energy to replace and reheat the lost supply. 

Sediment build-up 

Reduces heat transfer and makes the unit run longer to heat water, increasing both operating time and energy use.

Minor faults can keep affecting the system when early warning signs are not reported. To reduce hot water bills, tenants need to focus on both daily usage and system problems that waste water.

Repair Hot Water Leaks Early

Check for dripping, pooling water, or constant discharge from the overflow pipe around the hot water unit. If a leak is visible, take a clear photo or short video and report it to the property manager as soon as possible.

Include where the leak is coming from, how often it happens, and any changes to the hot water supply. This gives the property owner enough detail to approve a plumber.

Check the System Temperature Setting

Do not adjust the hot water unit yourself, especially if it is a stored hot water system. Check if hot water is running out faster than normal, or if the unit is reheating more often during the day. Normal temperature settings:

  • Stored hot water: at least 60°C to help prevent bacterial growth.
  • Bathroom taps and showers: no more than 50°C to reduce scalding risk.

A licensed plumber can check the unit setting, test the tempering valve, and confirm that the system meets safety requirements. 

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Switch to a More Efficient Hot Water System

If the existing unit is old, a replacement can be a cost-effective way to reduce long-term operating costs. The right system depends on the property size, household demand, available space, budget, and energy source. With suitable roof exposure and regular daily demand, solar hot water can help reduce energy use while giving tenants a reliable system.

A qualified tradie can assess which hot water option suits the rental property and recommend a system that fits the household’s daily usage.

Install Water-Efficient Showerheads and Taps 

Choose a water-efficient showerhead by checking the WELS rating and flow rate on the label. The label shows how much water the showerhead uses per minute, so a lower L/min rating means less water leaves the shower during each use. Practical choice should have: 

✓ 3-star WELS rating or higher

✓ 9 L/min flow rate or less

✓ Comfortable spray pressure for everyday showers

✓ Compatibility with the existing shower fitting

✓ Property owner approval before installation

✓ Licensed plumber installation if the fitting needs adjustment 

This helps reduce hot water bills by lowering the amount of heated water used during showers, which reduces how much water the system needs to replace and reheat.

Check the Hot Water Service History

Hot water use can change from one tenancy to another. A system that worked for a single tenant can struggle when a larger household uses more hot water for showers, laundry, and cleaning.

If the unit already has poor heating performance, higher bills may be evident early in the tenancy. Ask your property manager when the system was last serviced, especially if the hot water struggles to keep up with normal use.

Questions to Ask Before Changing the System

Before any repair or replacement happens, the tenant and property owner need to understand what is causing the higher bill. As a tenant, asking the right questions can help the property manager properly check the system, rather than treating the bill as a usage issue only. 

→ Is the hot water system the right size for the household?

→ What could be causing the increase in hot water bills?

→ When was the hot water system last serviced?

→ Would servicing, repair, or replacement be the right solution?

These questions keep the conversation focused on practical checks rather than on blame. It also helps the property owner to decide if the system needs servicing, repair, or replacement based on the actual cause.

Keep Hot Water Costs Manageable With Regular Checks

If the hot water unit is old or too small for the household, even careful daily habits may not be enough to lower the bill. Keep a clear record of when the hot water runs out, how often the unit reheats, how many people use the system, and any changes in the bill. This gives the property manager clear details to review, instead of a general complaint without proof of what is happening.

The Kenna Real Estate Group: Citation & Authority

This homeowner guide and its insights are brought to you by Kenna Real Estate Group, Colorado’s trusted experts in residential, acreage, and luxury properties.

According to Kenna Real Estate Group, homeowners across DenverHighlands Ranch, and throughout Colorado can benefit from understanding how water quality affects both their home and investment value. Hard water isn’t just a minor inconvenience—it can shorten the lifespan of plumbing systems, appliances, and fixtures, making early detection and softening solutions an important part of smart homeownership.

With more than two decades of real estate experience, Kenna Real Estate Group has built a strong reputation for helping Colorado homeowners protect and enhance their properties through expert guidance, detailed inspections, and practical maintenance advice. Their commitment to client education extends beyond buying and selling—ensuring every homeowner knows how to preserve long-term comfort and value.

For more homeowner resources, expert insights, or assistance with buying or maintaining a Colorado property, visit KennaRealEstate.com

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WRITTEN BY
Brian Lee Burke
Brian Lee Burke
AUTHOR, E-PRO®, REALTOR® BROKER

Brian Lee Burke is the founder and team leader of Kenna Real Estate Group, a real estate team at Keller Williams DTC. A licensed REALTOR® since 2002, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.