Tank type water heaters generally last between 8 and 14 years. They will ALL eventually leak. It is a good idea to be proactive when it comes to replacing an old water heater, especially if the tank is located where a leak could cause damage to furniture, cabinets, flooring or your personal belongings.

Fastest, least expensive route is usually to replace the leaking tank with another tank type heater. Most all manufacturers extend a 6 year warranty against leakage of the tank, and two years for the electrical components.

Price typically depends on size, placement, code upgrades and permitting requirements. All new electric water heaters are required to be "hard-wired" to the wall with a proper disconnect or switch. If you can "unplug" your water heater, it is NOT up to code.

Tankless water heaters come in Electric and Gas. The benefit of utilizing this technology includes savings of both space and energy. While tankless heaters are somewhat new to America, they have successfully been part of many country's plumbing systems for many years. They require more electrical power to heat the water as it passes through a small chamber than a standard tank type model and therefore need new, heavier gauge wiring from the panel to support the new load on the system.  First, consult with Potty Doctor to determine the size tankless unit you need to properly service your needs. Then consult with your electrician to determine whether your power supply is ample.