M.E.
Hi,
First your hot water heater is probably in need of a cleaning/flushing. You will need to turn it off and empty the whole thing out. Here is a link on how to do it: http://www.cbnbh2o.com/tips/heater.html It will clean all of the sediment and junk that builds up in the hot water heater over time. That is your cheaper option. You could also look into getting you hot water moved into your attic centralized in the house. You would need a plumber for this. He could tell you if that is an option. The most expensive option would be to look at getting an in-line hot water system (also called an instant hot water system). They can be very expensive. The big plus is that it only heats water when you need it. You might want to call around, as there are not a lot of people that install these systems yet. They are new to the American market. Do your homework, because some of the systems are make more for hospitals and commercial use, and don't work as well in a residential use.