I’m looking at a park that has well water but public sewer. A significant value add on the property would be to bill the sizable sewer expense back to the residents but I don’t know how to do this. Could I simply submeter the water then simply prorate the sewer bill based on water usage? I remember from bootcamp that dangers of profiting off water usage and my concern is being in violation of the law.
Thanks in advance!
Yes that is the approach that most utilities use to bill sewer. But before you do anything check your state’s submetering laws with your Public Utility Commission or MHA to confirm. Certain states allow a very nominal % profit above the actual expenses to cover the administration of the submetering “process.”
Also make sure your water submetering practices are “by the book” before getting started - the regulatory body might scrutinize it as it’s the basis for the sewer submetering.
There, along with the rules directly related to the billing, there are the MH law requirements on how you go about notifying your residents of the change and how the expense gets distributed for installing the individual meters. You may be able to legally bill that installation expense back to your residents in installments monthly to recoup the cost if its line itemed on their statements. But you’ll have to check on that.