Preparation is the key.
Build outside water heater enclosure.
Constructing a solid wall frame using two by fours can ensure the enclosure is strong and long.
Placing the shed on a concrete slab provides a stable base that protects the water heater and pipes from the shifting ground.
Building a lean to water heater shed against the exterior of your home can protect the water heater from the elements.
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Caution kids under 18 should not attempt this without adult supervision and proper safety gear.
These enclosures create additional indoor space by moving water heaters from the inside to the outside of a building structure while still shielding them from weather conditions.
You can work around this issue by moving the water heater outside your home.
How to enclose a water heater planning the enclosure.