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Water Heater Problems: Signs You Need Repair or Replacement

If your water heater is making strange noises, leaking, or running out of hot water too quickly, you're facing a decision: repair or replace? This guide walks you through the most common water heater problems Nashville families face, which are fixable, and when replacement makes more financial sense.

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Tankless water heater installation by Will's Friends - Nashville, Franklin, Brentwood

Table of Contents

Water Heater Repair & Replacement

Nashville • Franklin • Brentwood

Emergency Repair

Same-day service for leaks and failures across Williamson & Davidson Counties

Tank Replacement

Traditional 40–80 gallon gas or electric water heater installation

Tankless Installation

Whole-home and point-of-use tankless water heater systems

Free Assessment

Honest repair vs. replace recommendations based on age and condition

10 Most Common Water Heater Problems

(And What They Mean for Your Home)

Problem #1
Running Out of Hot Water Too Quickly

What it feels/looks like:

First shower is fine, but the second or third person gets lukewarm or cold water. Or you can't run the dishwasher and take a shower simultaneously.

What causes it:

Your tank heater has a fixed capacity (40–80 gallons). Once you drain the hot water reservoir, you're waiting 30–60 minutes for the tank to reheat. This gets worse as sediment builds up at the bottom of the tank—sediment acts as insulation between the burner and water, making heating slower and less efficient.

Repair or Replace?

If your tank is under 5 years old, flushing sediment and checking heating elements may restore performance ($150–$250). If it's 8+ years old or your family has outgrown the tank size, replacement makes sense.

Problem #2
Water Heater Leaking from Tank or Base

What it feels/looks like:

Puddles around the base of the tank, rust stains, or water dripping from the tank itself.

What causes it:

Tank leaks usually mean internal corrosion has eaten through the steel tank lining. This happens as sacrificial anode rods (designed to corrode instead of the tank) are depleted over time. Once the tank itself corrodes and develops a leak, it's irreversible.

Repair or Replace?

If the leak is from the tank itself, replace immediately. A leaking tank can fail catastrophically, flooding your home with 40–80 gallons of scalding water plus continuous refilling from your main water line. This causes tens of thousands in water damage. If the leak is from a valve or fitting, repair is usually under $200.

Problem #3
Rusty, Brown, or Discolored Water

What it feels/looks like:

Hot water comes out rusty, brown, yellow, or with visible sediment/particles.

What causes it:

Interior tank corrosion. As the steel tank lining corrodes (after the anode rod is depleted), rust flakes mix with your hot water. This also indicates the tank is approaching failure.

Repair or Replace?

Once you see rusty water, the tank's protective lining is compromised and failure is imminent (typically within 6–24 months). You can flush the tank to clear sediment temporarily, but you're buying weeks or months, not years. Replace.

Problem #4
Strange Noises: Popping, Banging, Rumbling

What it feels/looks like:

Loud popping, banging, rumbling, or knocking sounds when the heater fires up.

What causes it:

Sediment buildup at the bottom of the tank. In Nashville's moderately hard water (~100.5 mg/L), calcium and magnesium settle at the tank bottom over time. When the burner heats this sediment layer, trapped water beneath it boils and pops through the sediment—hence the popping/banging sounds.

Repair or Replace?

Flushing the tank removes sediment and often stops the noise ($100–$200 if caught early). However, if your tank hasn't been flushed in 5+ years, sediment is likely hardened and won't flush out completely. If the tank is 8+ years old and noisy, replacement is smarter than repeated flushing attempts.

Problem #5
Inconsistent Water Temperature

What it feels/looks like:

Water temperature swings during a shower—scalding hot then lukewarm. Or the water never gets hot enough, or gets dangerously hot.

What causes it:

Failing thermostat, sediment buildup affecting heat transfer, or a malfunctioning heating element (electric) or gas control valve (gas). In older tanks, the dip tube (which directs cold water to the bottom of the tank) can break, allowing cold water to mix with hot water at the top.

Repair or Replace?

Thermostat replacement or heating element replacement costs $150–$350 and often solves the problem if the tank is under 8 years old. If the tank is older or has multiple issues (sediment + faulty thermostat + age), replacement is more cost-effective.

Additional Common Problems (6-10)

#6Water Heater is 10+ Years Old

Traditional tank water heaters last 10–15 years on average. Once your unit hits 10 years, you're on borrowed time. Even if it's 'working,' efficiency drops significantly due to sediment buildup and component wear.

What to Do:

If your tank is 10+ years old and showing any symptoms (noise, leaks, rusty water, inconsistent temperature), replace rather than repair. Spending $300–$500 on repairs for a 12-year-old tank that might fail in 6 months is poor economics.

#7High Energy Bills

Your gas or electric bill has crept up over the past few years, even though usage hasn't changed. Sediment buildup, aging heating elements/burners, and standby heat loss (the tank constantly reheats stored water even when you're not using it—this wastes 10–20% of energy).

What to Do:

Tankless water heaters eliminate standby heat loss entirely. They only heat water on-demand, saving 8–34% on water heating costs according to the U.S. Department of Energy. For a typical Nashville family, that's $95–$108/year in savings.

#8Pilot Light Won't Stay Lit

You light the pilot, it stays lit briefly, then goes out. Or it won't light at all. Usually caused by thermocouple failure, dirty pilot orifice, or gas supply issues.

What to Do:

Thermocouple replacement is a common, inexpensive repair ($150–$250). However, modern tankless water heaters use electronic ignition (no standing pilot light), eliminating pilot-related failures entirely.

#9Pressure Relief Valve Leaking

Water dripping or spraying from the temperature/pressure relief valve. The T&P valve is a safety device that releases pressure if temperature or pressure inside the tank gets too high.

What to Do:

Replacing a faulty T&P valve costs $150–$300 and is a critical safety repair. If the valve is releasing due to actual over-temperature conditions, you have a more serious issue requiring immediate attention.

#10Water Smells Like Rotten Eggs

Hot water has a strong rotten egg or sulfur odor. Caused by bacteria reacting with the anode rod in the tank, creating hydrogen sulfide gas. This is more common in homes with well water or high sulfate content.

What to Do:

You can replace the anode rod or flush and disinfect the tank. However, tankless water heaters don't store water, eliminating the stagnant environment where bacteria thrive. Odor problems are extremely rare with tankless systems.

Repair vs. Replace: The Decision Framework

Repair If:
  • Tank is under 5 years old
  • Problem is minor (valve, thermostat, heating element)
  • Repair cost is under $300
  • No signs of tank corrosion (rust, leaks from tank body)
  • Replace If:
  • Tank is 8+ years old (especially 10+)
  • Tank is leaking from the body
  • Rusty water indicates internal corrosion
  • Repair cost exceeds 50% of replacement cost
  • You're experiencing multiple problems simultaneously
  • Your family has outgrown the tank capacity
  • Why Nashville Families Choose Tankless When Replacing

    When it's time to replace your water heater, you have a choice: install another tank (and repeat this cycle in 10–15 years) or upgrade to tankless and solve most of these problems permanently.

    Tankless Eliminates
    Running out of hot water (endless supply within GPM capacity)
    Catastrophic tank failure floods (no tank to burst)
    Rusty, sediment-filled water (no storage reservoir)
    Standby heat loss and high energy bills (8–34% lower costs per DOE)
    Frequent replacements (20+ year lifespan vs. 10–15 for tanks)
    Tankless Requires
    Higher upfront investment ($2,500–$6,000 vs. $1,200–$2,500 for tank)
    Annual descaling in Nashville's hard water ($150–$250/year or DIY)
    Proper sizing (we calculate your home's exact needs—no guessing)

    How Will's Friends Handles Water Heater Emergencies & Replacements

    Emergency Repair/Replacement

    If your water heater is leaking or has failed completely, we offer same-day service across Nashville, Franklin, and Brentwood. We'll assess whether emergency repair can get you through short-term or if immediate replacement is necessary to prevent water damage.

    Honest Assessment

    We'll inspect your current water heater, check age and condition, test for problems, and give you transparent options: repair cost + expected lifespan vs. replacement cost + long-term value. We don't push tankless if a tank makes more sense for your situation (short-term residence, tight budget, small household). Our goal is the right solution, not the most expensive one.

    Tank or Tankless, Your Choice

    We install high-efficiency tank heaters (40–80 gallon gas or electric) and tankless systems (primarily Navien due to their 15-year warranty, built-in recirculation capability, and proven Nashville performance). We'll calculate your home's hot water demand, evaluate your gas lines and electrical service, and recommend proper sizing.

    Professional Installation

    Code-compliant venting, proper gas line sizing, electrical connections, earthquake straps (where required), expansion tanks, and full commissioning. We handle permits, leave the work area clean, and walk you through operation and maintenance. Licensed, insured, and guaranteed.

    Water Heater Problems: Frequently Asked Questions

    Nashville's Trusted Water Heater Experts

    Emergency repair, honest assessments, and professional installation for tank and tankless water heaters.