Stay away from septic for rental houses in FL?

Question

Newbie investor in FL. I have been told by a real estate agent that her investors stay away from houses that are on septic as renters don't take care of what is flushed down and it can be a major expense. Just wanted to know what experienced investors/landlords think of this. Should I not consider any houses on septic? well water? What other things to stay away from for a landlord. Will have a property management co look after rentals. Any suggestions are appreciated.

Michael Lam · Answer

Hi @Ally Kumar

I've worked with other investors who own properties with septic tanks.  I too have inquired about this concern and for the most part its not a big deal.  You spend every two years or so to clear it.   One of my colleague clears it out every 5 years at around ~$300

I do know that its debatable.  On one hand if your on city sewer connection, you don't have to worry about maintenance.  But you do have to keep in mind your at mercy of the city decisions.  That could raise the price of sewer fees.

For example, if you purchased a home in an older neighborhood that is low in population density, then you can figure or make a good inclination that in the future the area will need to update their plumbings.  If they did, they will have to raise fees/taxes.  This would be more costly to you since less people to spread the cost.

On the other hand, it can equally be expensive if you don't maintain a septic tank.  But with anything, if you don't maintain it'll cost more to repair.

To me, i'm indifferent on either.  However, I'd be more concerned about the potential of increase in sewer cost, since I'm the kind of landlord that will do routine maintenance and be on it to avoid the larger cost.  But if your in a new neighborhood, you shouldn't need to worry.

If you did an inspection on the septic tank, it'll tell you its lifespan and its condition.  Use that in your decision making.  You may end up getting yourself a great deal on a home with septic (where other investors avoid).

John Thedford · Answer

I have 9 houses in SW Florida. Some are on septic and others sewer. In Cape Coral, the city plans to bring city water in. That expense to the property owner is about 22K currently. They will be doing this to one of mine probably next year. It can be paid in advance or added in with the tax bill. Either way, it is a pretty big hit. The positive side to city water is the quality, Tenants have to pay the water bill vs paying $25 a month or thereabouts if they hire a water company to maintain the well water system. I do know some investor that will ONLY purchase houses on city water. I will buy either depending upon the deal on the property though I prefer city water.

Colleen F. · Answer

Septics are a regional issue depending on your inspection requirements, your system types, and local regulations.   You also need to compare the type and age of system and the cost to replace in you area.  I have had septics in 5 states, every state is different.  I suggest that if Florida has requirements for the new type of systems due to environmental issues be careful about places that need new systems that are not gravity based they are more complex and expensive.  However you can live with any kind of system as long as you look into what vigilance is needed in terms of maintenance and the cost to repair replace and that works for you.   I would hesitate myself to have an ejection pump system with tenants.  Tenants don't understand what you cant' put down an septic and injection pumps can be full of tampons ect when the sewage backs up and you can't assume that is due to the current tenant.  I would think that is not an issue in florida because I think those are pumps for uphill systems.

Daria B. · Answer

@Ally Kumar

This is a matter of preference and whether those who own rental that have septic/well to those that are owner occupied and if they every had any issues.

I have never owned any and have decided to stay away from them. I spoke with one owner who had to replace the septic tank for $3000.

The property I looked at was over an hour away and I didn't feel comfortable being that far away and possibly having issues with those systems.

As some mentioned here, it's not an issue for them. However, others that I spoke with differ on that subject and also exclude them from their rental prospects.

Matthew Paul · Answer

I have 5 houses on septic ,its a non issue .  I havent had a problem yet . And if and when I do , I own a backhoe .

Wayne Brooks · Answer

It's not really an issue here.

Ari Knepel · Answer

There are plenty of homes with out it so just start with the ones wit out ;)

Stay away from septic for rental houses in FL?

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