Im looking at a fully occupied 70 space park with rents below market.
On top of that the current water/sewer costs run around $100 per person.
If I were to guess I would say 60% of that is from tenants using to much water and 40% ($33,000) is from underground leaks. Total costs for water/sewer is 84k
The avg cost for water and sewer once billed back is around $45 a month per home according to other parks nearby.
The game plan would be to bill back the water/sewer and fix the underground leaks.
The park has no lawn and no reason to use any water so if am able to do this I would be netting an extra $100 per lot.
The park owner owns multiple parks and seems to be pretty knowledgeable. The lots are already sub metered. The owner claims he used to bill back and then got tired of checking the meters. I asked about a leak and he said there could be some leakage he isn’t sure and if so it can be fixed.
I have seen a lot of posts online about pipe bursting, nuflow techonolgy, trenchless sewer lining etc. I have also heard that american leak detection can pinpoint exactly where the leaks are coming from. I also have seen that Frank says he has only had to replace sewer lines on one park out of 200.
So hopefully this is an easy fix.
My questions and concerns are.
Should I be worried about the leaks? Seems like they have lots of cheap solutions these days. Would it be safe to say that under most circumstances I would be able to fix all the leaks for under 50k? How often is it so bad that everything needs to be replaced?
Im also wondering what the catch is and why the current owner has stopped sub metering, and or hasn’t fixed the leaks himself. Seems like a no brainer.