For a rental that goes from empty to eight people on a Saturday afternoon, the case for tankless is genuinely strong. There is no reservoir to run dry, so back-to-back showers stop being a complaint in your reviews. Service life runs closer to 20 years than 10, and nothing is sitting in the garage slowly rusting between seasons.
The case against is upfront cost and infrastructure. A tankless unit needs gas and vent capacity a tank heater never asked for — typically 150,000 to 199,000 BTU, which many older beach houses cannot feed without a line or meter upgrade. It needs correct venting, condensate handling and isolation valves for service.
That is why we assess the gas load before quoting. A conversion priced without checking capacity is a conversion that turns into a change order halfway through install day.
Our rule: high-occupancy rental with adequate gas service, go tankless. Modest year-round household, or a property where the gas upgrade dominates the budget, a right-sized tank is the better spend. Either way you should see both numbers before you choose.