Sewer Pipe Replacement Increase Home Value?

[Kyle Smith]

A duplex that I own is getting the entire sewer line replaced as the original line has failed. My question is will this increase the value of the property or is this going to be considered a sunk cost to just keep the property running?

My thought is tenants expect the sewer line to work. I'm not increasing the quality of life for my tenants but can't find any good information online in terms of the property value going up or remaining flat after the work is done.

Thanks for your feedback!

[JD Martin]

Originally posted by @Kyle Smith:

A duplex that I own is getting the entire sewer line replaced as the original line has failed. My question is will this increase the value of the property or is this going to be considered a sunk cost to just keep the property running?

My thought is tenants expect the sewer line to work. I'm not increasing the quality of life for my tenants but can't find any good information online in terms of the property value going up or remaining flat after the work is done.

Thanks for your feedback!

Sunk cost. Functional infrastructure can only maintain the value of a property, not increase it; non-functioning infrastructure will in fact decrease value. Same goes for (in general): water lines, electrical systems, roof, HVAC, framing members, insulation, etc.