Thoughts on 8 Units being on a septic system?

Question

Hello BP,

Once again, I need advice. I am currently evaluating 8 units, all in one building and as the title explains, the property is on a septic system.

I am looking for everyones thoughts and advice on whether or not this is an issue or something to be wary of moving forward.

Property details that might be pertinent:

Built in 1974

8 units comprised of all 2 bed 1 bath

Public sewer lines are not available for hook-up

Water is on 2 meters, each supplying 4 units

If there is any other information that I can provide please let me know and I will do my best to get the it in a timely manner.

Thank you for your responses!

Bjorn Ahlblad · Answer

@Mack Owens Have the septic system inspected by a pro. Size and condition will be important. Good news is you will be avoiding 7k a year from city for water and waste. Bad news is septics are expensive to fix if they stop operating. I built a house with a septic in 1975 and it is working well today. I am assuming you are on a well too-right? Get that inspected for working condition and water quality too.

Joe Splitrock · Answer

I had a septic at my personal residence and you have to be careful what you flush. The tank needs pumping on a schedule. Looking at that diagram, that is not just a regular residential tank and drain field. It looks to me like some retrofit after the fact. I would hard pass on this. Dealing with sewer backups or replacement is a major nightmare. It is bad enough dealing with a sewer main to the street, but now you have a $20K or more system that takes up your entire property to deal with.

People say being a landlord is about problem solving, which it is, but it is also about knowing how to avoid problems.

Colleen F. · Answer

@Mack Owens  Like anything it is a risk. The fact that there are alarms and pumps doesn't mean it is a cobbled together retrofit. More likely there was a more modern update, alarms and such I believe were required after 2000 in RI/MA.  I do have a multi on septic with a similar system.  A good septic inspector can tell you a lot. Consider what you would pay in sewer each year.  Also find out if there is sewer coming into your area, you will of course have hookup fees to pay but you know if long term you are replacing a septic or going to sewer. Septic can last a long time.   Tenants are pretty co-operative, I give them information on alarms at move in. The septic alarm has gone off once in 8 years due to an electric issue. If you have filters you do have to clean them every 6 months. It is about $600  here to pump 2 1000 gallon tanks if you do it every year.  You only have to do it every 3 years  by law. All that said you have to be comfortable with it, I am since I haven't lived in a house with sewer in forever. As for putting things down the septic  IMHO most things that don't go down septic also shouldn't go down sewer but tenants aren't careful so that is a factor too.

Reinaldo Lopez · Answer

Hi everyone,  very good comment's,  you have a pump septic system, not bad, first have a professional take a look and evaluate it, be careful with some contractors that will sell you a new system that you do not need. From what I  see you have 2 holding tanks going to a pump station that pumps it to a drain field. Look for some soft areas around the drain field. Check the pump twice a year for functioning and the activation floats. Have the 2 holding tanks pump no more than every 2 year or yearly to prevent mayor sludge build up. Renters will dump anything that should not be dump in the system this is why I  recommend every year as a minimum.

https://www.google.com/url?sa=...Sludge and scum check

depending on the tank size it might cost $200 to $400 a pump per tank. At leas that's the rate in South Florida.

As final comment,  it is more maintenance, yes, not complicated. City Sewer connection can be very extensive, compare to yearly cost, try multiplying for 10 years cost versus connecting (if available) to the city plus seweage charges.

Mack Owens · Answer

@Colleen F. , @Todd Rasmussen , @Greg Powers , @Bjorn Ahlblad

Here is what I was able to procure. Would you all mind weighing in whether or not a system this complicated is worth the associated risk? I really do appreciate all the help!!

Greg Powers · Answer

@Mack Owens, I don't think any of us can decide for you whether it's worth the risk.

The "risk" as I see it involves three factors: 1) How soon will the system, or any of its components, need to be replaced, which a good inspector should be able to counsel you on.  2) How much will the system or its components cost to replace?  If you find a septic designer in your area, they should be able to tell you if the system is adequate for current usage or whether, if any part needs to be replaced, it would need to be upgraded; then you could speak with a septic installer and get an idea of the cost for all or part of the system.  3) Can you control the behavior of the tenants to protect the system (can you prevent them from flushing personal products down the toilet, or pouring bleach down the drain, or washing paintbrushes in the sink)?  Maybe a corollary risk is being without a working system for a month while a new one is designed or installed--what do the tenants do in that case?  Do you lose them?  Do you have to pay for hotels in the interim?

Then look at what kind of return you can expect from the property.  Will that return be sufficient to deal with a worst-case scenario?  And are there any other opportunities you could invest in besides this one with less risk or a better return?  What is the anticipated lifespan of the system and how long do you plan to own it; and how will that condition affect your ability to sell down the road?

Good luck!

Andrew Syrios · Answer

I would be nervous about that. Personally never seen anything more than a duplex on septic. Make sure to get a pro out there to inspect the tank and leach field and make sure they are sufficient and in good shape.

Greg Powers · Answer

@Todd Rasmussen, I would also try to get a copy of the current septic plan from the town or state (here in NH the Dept. of Environmental Services has many plans on file) and ask whether, if the system needed to be replaced, it could be replaced with the same type of system.  Rules around septic systems can change, and if the current system would have to be replaced by a different size or type, you’ll want to check with a septic installer regarding the cost for a new design AND installation.  A new system for a single-family home here in NH can cost $12,000-$15,000.  I’d guess a system for an 8-unit property would be quite a bit more.

It might also be wise to include some dos and don’ts in the leases, and not just as suggestions, perhaps with monetary charges for violating them (if allowed).

Bjorn Ahlblad · Answer

@Mack Owens for me it would be about the numbers just like any other underwriting. I would include a CAPEX allowance for either paying to hook up to city sewer or rebuilding the septic at some potential future date. Cost and frequency of pump out-balanced against savings by avoiding city sewer. You will want to give your tenants a heads up with a few do's and dont's.

Todd Rasmussen · Answer

I'd call and ask a septic company or two in the area what kind of maintenance you need to have done and what it would cost as well as what it will cost to replace the whole system. That'll tell you what you need to amortize down into your monthly expenses.

Thoughts on 8 Units being on a septic system?

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