I have a park under contract. The only lines that the park owns is the water line. They are very old and most likely will need to be replaced. If I go through the expense of replacing the lines I would like to have the lots individually metered and pass the water expense onto the tenants.
The park is located in Iowa. Does anyone have any good contacts/companies to speak to in order to get a quote for upgrading and metering the lots?
Any help would be greatly appreciated.
Clarke
Clarke,
I would have your maintenance guy change out the water lines with PVC. As they change out the lines they would just put in a water shut off valve and sub meter at each residence. You will need to find out how deep the PVC pipe will need to be down. Be careful when digging as you can come across old electrical, gas, water, and sewer lines. You never know what you find in those old parks. Unless the deal is absolutely outstanding, I would find a park that has good infrastructure.
Corey
Thanks for the input. I am most concerned if the tenants will give any kick back to begin charged for their water. The park charges $135 for lot rent and the tenants are on a very fixed income.
Utilities are highly regulated in Texas and in most states. At our mobile home parks we are unable to pass a “surcharge” on to the tenants. This would be a very easy way to get in a lot of trouble and have a class action lawsuit (this happened to a mobile home park owner that I know). However by utilizing a third party administrator (like Edison Micro), you can charge a “base charge” which could be an additional profit center.
Corey