Septic & Occupancy

[Michael Peters]

My wife and I are looking to purchase our first property with hopes to turn it into a STR. Its a 4BR/3BA lake house in the woods of Wisconsin and on septic. During disclosure we found out that while it is a 4BR the septic is only rated for a 3BR. I feel like that would affect the max occupancy when listing it for rentals but am still trying to get my head around local regulations regarding STR.

Am I correct in assuming that we can only rent the home for a max occupancy of what the septic can "handle" based on local regulations? Thus turning what we thought was a 8-10 occupancy to a 6 occupancy? Does anyone have experience in the dirty world of septic and renting that could provide some insight?

Thanks!

Mike

[Nathan Gesner]

Quote from @Michael Peters:

Yes, you can limit occupancy based on the capacity of the property. Check out the Keating Memo from HUD for guidance: https://www.hudexchange.info/resource/6632/occupancy-standar...

[Marcus Auerbach]

Quote from @Michael Peters:

My wife and I are looking to purchase our first property with hopes to turn it into a STR. Its a 4BR/3BA lake house in the woods of Wisconsin and on septic. During disclosure we found out that while it is a 4BR the septic is only rated for a 3BR. I feel like that would affect the max occupancy when listing it for rentals but am still trying to get my head around local regulations regarding STR.

Am I correct in assuming that we can only rent the home for a max occupancy of what the septic can "handle" based on local regulations? Thus turning what we thought was a 8-10 occupancy to a 6 occupancy? Does anyone have experience in the dirty world of septic and renting that could provide some insight?

Thanks!

Mike

I would be surprised to find a lake house on a legal septic system, most likely the house has a holding tank that needs to be pumped every few weeks depending on usage. The good news would be that expanding to a bigger holding tank is not as costly as replacing a whole spectic system (especially a mound system).

[Andrew Steffens]

I am not an expert in septic but we have a few.  We increased the frequency in which it was serviced.  It is annoying but if the extra occupancy calls for it it is worth the hassle.

[Travis Timmons]

I'd suggest picking up the phone or stopping by the local code enforcement office. In a small town, it's likely just 1 or 2 people. Don't try to hide anything and just ask for help. They'll probably be really helpful if you are straightforward, honest, and just want to follow the rules. 

[KiKi Wood]

I live on a septic and I get being worried about this, but I would do more research before you make that decision! If it is rated for a 3 bed, but it's not getting super regular use because of vacancy, then I don't know if I would be too worried about it. That rating seems to be based on that amount of people living in the home regularly. I would do what makes you comfortable, but that's what came to mind when I read your post! Best of luck! :) 

[Wesley I.]

@Michael Peters

Dont see why you cannot rent it out to 8-10 people, just be prepared to have it pumped/serviced frequently.

It would be nice to know the size of the tank you have.

Was the 4th bedroom a later addition?

Our county has a list of approved/licensed septic servicers on their website. Call your city and see if they have one too.

[Michael Peters]

Well, I called all sorts of people and really couldn't get a solid answer from any of them (septic guys, city guys, county guys, rental guys). At the end of the day we decided to negotiate w/ the seller on the cost of the upgrade to get them into compliance. The purchase moves forward!

[Collin H.]

Quote from @Michael Peters:

Well, I called all sorts of people and really couldn't get a solid answer from any of them (septic guys, city guys, county guys, rental guys). At the end of the day we decided to negotiate w/ the seller on the cost of the upgrade to get them into compliance. The purchase moves forward!

You did it the smart way!  As to the septic system issue, the Smokies are full of 2 bedroom cabins that "sleep 16".  And there you have it!

[Garrett Brown]

@Michael Peters Most of the answers here are good advice on pumping more frequently if you're worried, but unless you book it 90-100% of the year, it doesn't get used as much as you would think. Great move on negotiating with the seller though.

I know you said you have called everyone but I'm shocked you can't get an answer since septic is usually the biggest issue with counties. @Travis Timmons hit it on the head with his suggestion. I would keep reaching out  (emailing is preferred, so it's in writing) to the county permitting department until you get a clear answer, even if it is "We don't have any occupancy septic rule". 

Welcome to the forums, and good luck with your new property! We have a weekly STR newsletter called BiggerStays, which you can access by going to the settings, notifications, and marketing emails section of your profile. Tons of great information to run your STR successfully!

[Alecia Loveless]

@Michael Peters Unless your town regulates occupancy with septic capacity like mine is trying to do you just need to increase the amount of service to it to keep your 4 BR occupancy strong.

My septic inspector regularly tells me there’s generally no septic police for these matters once the property is built.

But be aware your town could try to regulate septic capacity with the number of allowable bedrooms if they start to regulate AirBnBs.

[Joshua Messinger]

Hey @Michael Peters, this is a common issue in the Pocono market that we face and usually we don't even know of the septic rating until we verify with the township. I would just double check with your township the property is located in and they can tell you what the laws state regarding what your max occupancy can be in relation to the amount of bedrooms your septic system permits. Besides that, I would never go off any seller ever in trusting the grade of a septic system, the township is your best friend when it comes to figuring this out.