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Assuming its electric, It could be low voltage to the coils, if the area has huge draw from ACs.
If not, its the heater itself. You can replace the heating elements, but more often its easier to just replace the whole heater.
If the heater is working and the water is always hot, but not hot to the faucet, look for a tempering valve after the hot water feed. (it mixes hot with some cold) it will have hot and cold sater pipes going into it, and one feed going to the house, it might have a black knob on it,. If its messed up it may not be controllling the mix. Keep looking......
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