A method for managing a refrigerant charge in a system for heating water and conditioning an interior space by removing power from an indoor fan for a first duration of time prior to switching at least one valve to configure a second refrigerant circuit for satisfying a water heating demand. A method for managing a refrigerant charge in a system for heating water and conditioning an interior space by removing power from a water pump for a second duration of time prior to switching at least one valve to reconfigure a first refrigerant circuit to satisfy an interior space heating demand.