Rental Property Investor · San Francisco, CA · Member since 2017 · 132 posts · 56 votes
I am looking at a SFH in a new sub division that is a little bit remote, but continues to grow. As a result, all properties there have septic systems. The house i am interested in was build in 2007. I have no experience with septic systems and dont seem to find a clear answer in other forum posts. I am curious to find out more about the additonal maintenance and cost that comes with a septic system? Is that a nightmare for landlords? Are septic systems a deal breaker?
I used to have mine cleaned one a year for a while-unit. Damn thing was 30 Years old and never failed. Annual clean out of an about $150.00 when scheduled, triple that if emergency.
I would say no...if people want to live in that area they're probably expecting or are aware that septic is their option. If your goal is renting, make sure they are aware of how to deal with septic and make it something they're responsible for. It all comes down the the right house, the right price and the right understanding with the tenant (or end buyer if you're selling for a flip).
I used to have mine cleaned one a year for a while-unit. Damn thing was 30 Years old and never failed. Annual clean out of an about $150.00 when scheduled, triple that if emergency.
What are some of the things tenants need to be aware of with a septic system? Obvisously, Tenants do not care about the property as much as the owner. I am just concerned asking too much extra of the tenants.
Just like a regular sewer not much should be flushed. However, you have a to be a bit more careful with a septic, but overall it isn't that big of an issues. I agree with @Mark H. Porter. Regular cleanings can go a long way.
Additionally, sewer lines can have issues and be super expensive to fix as well.
I have a septic at one of my rentals. It's not a big deal, I just made an information letter about septics that I attached to the lease and told the tenants what to expect. Certain cleaning chemicals should not go down the drain and I let them know they should be looking for chemicals marked septic safe. I get the system cleaned annually for a couple hundred bucks.
You probably have a gravity septic system but have it inspected to see if there are any issues and to verify what the system is. If there is a pump make sure the tenants do not put any personal products down the toilet. It will jam the pump. A more complex nitrogen system there is a lot to know but unless you are close to water you won't have that. Septics should be pumped every 1-3 years and some areas may require town inspections. No grease down the sink or it can clog you leach field. Make sure you know where the leach field is in case you or your tenants want to dig. 2007 is a fairly new install so should be good.
There are certain things you don't want tenants flushing, though most apply to those not on a septic. Make sure you get the septic inspected. This is separate from the normal inspection.
@Hai Loc I am a passive investor myself. I am curious to learn more about your concerns. Additional costs seem to be minimal. Sounds like it is just a few hundred per year. What liability concerns do you have?
@Mark Cruse What exactly are your concerns with septic systems? I am still learning more about it, but so far I get the feeling it is not much additional cost/risk.
@Hai Loc I am a passive investor myself. I am curious to learn more about your concerns. Additional costs seem to be minimal. Sounds like it is just a few hundred per year. What liability concerns do you have?
Septic tank I view as a mechanical just like a furnace or AC but a more expensive and likely capable of lasting longer.. its an added line item on your cap ex.
I had a septic system on a multi family rental in New York State.. it freezes during extreme temperatures and sometimes backs up. Your in CA so might not run into that issue.
I just try and avoid non city utilities at all costs..
For me not a deal breaker. I live in a area that is perdominatly septic and wells. It seems to scare off alot of buyers. Plus I'm a plumber and work with subs that do septics. What is a downer though is when the water table Is high and you need a raised mound system. Costly.
In my area alot of properties that sit on the MLS a long time usually have a cesspool and need a raised mound which is why they end up sitting vaccant. If the septic Is over 30 years I'd budget to change it sooner than later. Also you should budget monthly for pumping and eventual replacement. Most decent designed septics will last 30 years or longer. If you do the math the maintenance and repair cost per year really isnt horrible over that long of a period.
Drilling a new well also very expensive. But If you already have a deep well that's plastic casing, well pumps arent too horrible cost wise to replace. 9/10 times a well breaks down it's the pressure switch which is like a 15 minute repair. Watch out for old driven wells.
Inspect the septic, it isn't that expensive, some states require it. In MA I had to have it inspected prior to sale on my primary but if you don't live in a state like ma it is on you. Years ago we bought a house in AZ and got a septic certificate when we bought. In some state that means it is inspected and pumped, In AZ we learned, when the sewer backed up, that only meant that we had a septic. not a nice surprize. That said, septics don't scare me off and one from 2007 should be good but its worth it to have someone look at it.
Only another opinion. See if it was permitted and passed inspection during construction. Get it reinspected before purchase (e.g. full, leaks, pump, pump wiring, structures built on drain field, etc.). I just put in septics for two new construction rentals I am building. A really smart septic inspector advised me, if the system is sized right for the # of bedrooms (occupants), only water, human waste and toilet paper are allowed, it never needs to be emptied. Makes sense, my house has been on septic for 25 years and we've never touched it. He also said those septic treatments you flush down the toilet are a waste of money. Why couldn't I have invented something people pay money for and immediately flush down the toilet lol.
I have a lot of experience with septic systems. Engineering standards are typically very strict, so your 2007 house should be fine, but get it inspected anyway. My problems with systems have mainly been with the filters. There is a filter between the tank and the leach field, which protects the field. If the effluent has things floating in it that would clog up the leach field, the filter catches it.
The field is very expensive to replace, so you must protect it and not remove the filter, even though it's tempting because the darn thing keeps getting clogged. Items that clog the filter include cat litter and coffee grounds. It's very easy to clean the filter, but gross! When the filter is clogged the water level in the tank rises. This causes a back-up into the home. In freezing temps, this back-up can freeze, causing even more problems.
I have multi-units that share a system, so I can't prove which tenant caused the clog. I've threatened to do DNA testing, haha! The first floor tenants have an incentive to be careful because they get a wet bathroom floor if it backs up, but they are at the mercy of the upstairs tenants. However, if I had a house I would make it the responsibility of the tenant. If they flush it, they pay to clear it.
Another thing, you need to keep the system, including the field, free of trees and bushes, so it must be mowed regularly.
As long as the tenants are careful, they will enjoy not having to pay a sewer bill!
Here is my opinion - its not so much about the septic system itself. It's more to do with the municipality that you live in. Some (like ours in NC) only requires a permit at installation. No yearly inspections or inspections at resale. Additionally, we have sandy soils that are very good for septic systems.
If you are in an area that is highly regulated, or has poor soils that require engineered systems, I would shy away.
I can get a brand new septic system installed for about $4k. In other areas that same system would run $8 - 15k.