Sequential heavy use — back-to-back showers, long showers, a busy morning one person at a time. Excellent. This is the case tankless was made for. A tank runs out; a tankless unit doesn't. Four consecutive showers is the scenario where the difference is dramatic and immediately obvious, and it's the most common reason people switch and stay glad they did.
Simultaneous heavy demand — two showers, a dishwasher, and laundry at the same time. Workable, but this is where cost escalates. The unit has to heat everything running at once, at your incoming water temperature, which pushes you toward a larger unit or multiple units — and toward a bigger gas supply to feed them. It's entirely doable. It just isn't the cheap version, and anyone quoting you the cheap version for this demand profile hasn't done the arithmetic.
Low or intermittent use — a small household, a single occupant, a second property, or a holiday home. Excellent, for a different reason. A tank keeps water hot around the clock for a household that might use it twice a day, losing heat continuously to a room that doesn't need heating. Tankless uses nothing when nothing is being drawn. The less predictable your usage, the better the case.
A property with hard water and no treatment. Poor, unless that changes. Scale builds on the heat exchanger, restricts flow, degrades performance, and triggers shutdowns. Descaling is routine maintenance rather than an occasional repair, and many warranties are conditional on it being done. Tankless in hard water without either treatment or a maintenance commitment is a purchase that disappoints on a schedule.
A rental, or any property where maintenance won't reliably happen. Poor. Same reason. A tank neglected for a decade is a tank that eventually fails. A tankless unit neglected for a decade underperforms most of that time and may void its warranty doing so. If nobody is going to descale it, that's a genuine argument for a tank.
A property short of space, or one where the tank is somewhere inconvenient. Strong, regardless of the energy case. A wall-mounted unit frees a footprint, and removing a tank from a cramped closet or a crawlspace has value that doesn't show up in a payback calculation.
And one that isn't a household type but comes up constantly: if your actual complaint is waiting for hot water, tankless will not fix it. That's a distance and pipework problem, and the answer is recirculation — covered below.