Prepping to sell

Hey All-

I own a small park in Arizona which I anticipate selling this year (moving to Florida). We’re fully occupied, and rents are at market, so I really have no “upside” to offer a buyer…except for submetering the water.

So, which is the better way to go:

  1. submeter it myself to maximize revenue, increase the selling price, and have the park “turnkey”, or

  2. not submeter, which keeps the price down, and provides an upside for the buyer?

I’m not so concerned with maximizing the selling price, believe it or not, but to help ensure a sale. Which would a potential buyer find more appealing?



Generally the cost of $250 per space of submetering (average price) is lower than the result of the increased cap rate (and theoretically sales price) you’d see just from lowering your water costs by 80-90%. So yes probably a good idea, simply having meters often makes it a more attractive option to buyers from what I have seen.

  • This of course assumes a reasonable cost for the submetering (get 3 quotes) and that you aren’t happy with the price you would get w/out metering the park.

There is something to be said for leaving a little “meat on the bone” for the buyer so they can push revenue. I would not submeter before you sell so the buyer will have some immediate upside on the park after they purchase. It might make your park more inticing to buyers.

Agreed, it sounds like a pretty fluid situation. Also keep in mind that the time between going out to bid on submeters, installing them, and then getting your residents to regularly pay up can sometimes take between 90-120 days. Longer if you are in a state with a nightmare weights and measures department.