Tubs over the thermostat probe?

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So you put the probe on the heat tape and not inside the tub?

I have mine inside the tub, was told thats the correct way. or does either way work, just a matter of prefrence

Some people do it this way, the problem is that probes tend to wander. If your thermostat probe is inside the tub, the movement of the snake can shift the probe and the heat tape can heat up in excess and cause thermal burns, not to mention its a fire hazard. Its up to you but the risks are higher this way.