Water Sewer Who Pays?


#1

I’m working on getting my first MHP and was wondering what all the scenarios are in dealing with Water and Sewer. As I understand it- it’s one of three options:

  1. Each MHP lot is metered separately and paid directly from tenant to the city/county. (best case)
  2. Water/Sewer is lumped together, paid by park and then submetered/paid back to park by tenants.
  3. Paid by park and included in lot rent.

The park I am looking at is on an exposed lagoon waste setup with one water pump which services 22 occupied lots and 11 vacant. Another well has been dug, but needs another well pump to tie in for another 13 approved lots.

Is the third option a common practice outside of short term RV rentals?
Any advice or knowledge shared on this topic would be much appreciated. I understand it’s probably one of the simplest terms, but as it is one of the largest expenses, I want to make sure I understand each thoroughly.

Thanks!


#2

1 and 2 are the most common. Every once in a while you will see a mom or pop operations doing 3, but not often.

Be sure to check you state’s submetering regulations so you do all the necessary paperwork / legalities.

I’d also make sure you get very educated on private utilities if you have not already. Lagoons and packing plants are kryptonite for a lot of investors.


#3

I will definitely look into sewer waste lagoons- I’ve now heard good and bad about them. Thanks!