Whether you are looking to save money or add more comfort to your home, choosing a water heater for your 2-Flat in Chicago is one of the most important decisions you can make as a property owner.
There are many variables that will drive this choice, and at times it can seem overwhelming. As you start your water heater journey, let’s look at some of these options to see if you are making the right choice for your family.
Water Heater Variables
- Shared or Separate Water Heater Systems
- Household Occupancy and Usage
- Budget
- Efficiency
- Length of Occupancy
Water heater installation, repair and replacement are some of the most frequently used services at Baethke Plumbing. Our licensed plumbing technicians, with over 30 years of experience, are helping our clients in the Chicagoland area every day make these difficult choices easier.
We would like to share some of our hands-on water heater knowledge so you can make the best and most informed decision when choosing your next water heater for your Chicago homestead.
Separate vs. Shared Hot Water Heater Systems
Before choosing the perfect water heater for you, we need to determine which of these two options works best for your building’s specific needs. Do you want separate systems for each unit in the building, or one large system for the whole building?
Option 1: Separate Systems (Two Separate Water Heaters)
This is the most common setup for Chicago landlords and property owners. Each apartment gets its own dedicated water heater.
Separated Property Utilities (Individual Units)
| Pros (Benefits) | Cons (Drawbacks) |
| Separated utility bills make it easier to track building expenses. | Double the machinery is required to run the property. |
| Tenants pay directly for their exact gas or electric usage. | Twice the floor space is needed in your basement or closet. |
| Isolated equipment failures mean only one unit loses hot water. | Higher maintenance needs apply because you must service two separate units. |
Option 2: Shared System (One Large Water Heater)
In this setup, one larger water heater supplies hot water to both the first and second floors.
Shared Property Utilities (Single Master Unit)
| Pros (Benefits) | Cons (Drawbacks) |
| Lower upfront cost since you only buy and install one machine. | Landlord pays the bill for the entire building’s usage. |
| Saves valuable space in tight Chicago basements. | Impossible to track exactly how much hot water each tenant uses. |
| Less maintenance work because you only service a single unit. | Total building outages occur if the one machine breaks down. |
Gallons of Hot Water Per Minute
Before we talk about which water heater fits your Chicago 2-flat, let’s cover one key concept: GPM, or Gallons Per Minute — this tells you how much hot water flows out at once, and it’s what actually determines whether you’ll run out mid-shower.
Here’s why tank size alone doesn’t tell the whole story. A standard tank water heater holds 50 gallons total, but it doesn’t deliver all 50 as usable hot water. Typically, around 35 gallons come out hot right away; the remaining 15 gallons are cold water that the unit starts heating as you draw down the tank.
A typical shower uses about 2 GPM. So with 35 gallons of hot water available, gives you roughly 17–18 minutes of continuous hot water before it runs out. That’s an important distinction for a 2-flat, where multiple people may be showering back-to-back or even at the same time. Which could leave someone out in the cold (shower).
This is a vital piece of information to consider when choosing a water heater for your home.
3 Water Heater Options for 2-Flats
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Traditional Gas Tank Water Heaters
Tank water heaters are those tall, metal cylinders you see in most Chicago basements. They heat water and store it until someone runs the hot water. The most common size tank water heaters will hold 50 gallons of water. But remember from above, the unit does not store 50 gallons of hot water.
- The Cost: $3,400 to $10,000+ per unit (including installation). This is a general range of the average cost for a tank heater. The total price may vary based on each individual installation.
- Why it’s great: They are reliable, relatively cheap to buy upfront, easier to repair and maintain.
- Downside: They constantly heat water even when nobody is home. This wastes energy. If tenants take back-to-back showers, the tank will run out of hot water.
- Best For: Landlords on a tight budget who want separate utilities. This option is generally the cheapest.
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Tankless Water Heaters
Tankless water heaters are ideal if you never want to worry about running out of hot water! Yes, it is more expensive up front, but a tankless system (with proper maintenance from a certified plumber) will last much longer than a traditional tank heater.
- The Cost: $4,500 – $10,000+ per unit (including installation and required venting upgrades).
- Why it’s great: Endless hot water. Your tenants can run two showers and the washing machine at the same time without running out. They also save massive amounts of basement space and lower energy bills.
- Downside: Higher upfront cost can range from $1,000 – $5,000+ more than a tank heater. Chicago code requires PVC venting through the side of the building for these units. The extra cost is primarily due to the additional installation labor and materials which could include upgrades to electric and gas lines. They also need annual maintenance or filter replacement.
- Best For: Owner-occupants who plan to stay long-term, want premium comfort and want to save money in the future. This option is generally the most convenient.
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Hybrid Heat Pump Water Heaters
These are electric tanks (no gas required) that pull heat from the surrounding air to warm the water. These units need 1,000 cubic feet of space and proper ventilation to function correctly. Typically, these units are for larger single-family homes which have plenty of space for the unit to breathe. This option is generally the most efficient.
- The Cost: $6,000 to $10,000+ per unit (including installation).
- Why it’s great: They are incredibly energy efficient. They can save hundreds of dollars a year on electric bills. They also qualify for large federal tax credits and local utility rebates.
- Downside: They need a lot of space to breathe. Chicago basements can get very cold in the winter. Because they pull heat from the air, they will make an already chilly basement feel even colder. Having a well insulted, finished basement would be ideal for this type of water heating unit. They also heat water slower than gas units.
- Best For: Environmentally conscious owners looking to transition away from natural gas.
Water Heater Comparisons
| Feature | Traditional Gas Tank | Tankless Water Heater | Hybrid Heat Pump |
| Upfront Cost | Low | High | High |
| Monthly Operating Cost | Medium | Low | Very Low |
| Space Required | Medium | Very Low (Wall-mounted) | High |
| Hot Water Supply | Limited by tank size | Endless | Limited by tank size |
| Life Expectancy | 8 to 12 years | 20+ years | 10 to 15 years |
Which Water Heater Should You Buy?
Honestly the “best” option depends entirely on your goals.
- Choose Traditional Gas Tanks if you want the lowest upfront cost, separate tenant utilities, and simple maintenance.
- Choose Tankless Heaters if you want to maximize basement space, eliminate “no hot water” complaints from tenants or other household members, and plan on owning your property over 10 years.
- Choose Hybrid Heat Pumps if you want to maximize energy efficiency and take advantage of government rebates.
There are many factors which will lead you to choosing the right water heater for your home. The most important things you need to consider are number of household members, number of faucets, and overall occupancy water usage.
Ultimately, we want you to get the most value out of whichever option is the best fit for you. For your peace of mind, all Baethke Plumbing water heater installations come with a five-year warranty covering parts and labor. Also available, is the option to add an additional five-year repair and maintenance warranty, giving you 10 full years worry free water heater ownership.
If you need any additional information about water heaters in general, scheduling installation or in-house consultation we can help you today.
No matter which of the three water heater options you choose, Baethke Plumbing has got you covered. Our professional plumbers install thousands of water heaters throughout the Chicago metro area, and no job is too big or too small.
Frequently Asked Questions
- How long do water heaters last in Chicago?
Traditional tanks last 10 to 12 years, heat pump heaters last 10 to 15 years, while tankless units can last up to 15 to 20 years. Required yearly maintenance is recommended for all types of water heaters to increase longevity. - Why is a tankless upgrade expensive in Chicago?
Older brick bungalows and 2-flats feature rigid venting and smaller legacy gas lines that must be widened to meet high-BTU tankless demands.
