For many, the phrase “onsite treatment system” sounds like a liability nightmare.
And “city sewer” feels like safety.
But that assumption deserves a closer look.
Public utilities come with real tradeoffs:
- High cost: Monthly water and sewer fees can materially impact affordability — whether paid by the owner or passed through to tenants
- No pricing control: Municipalities can raise rates with little restriction, and recent increases have been significant
- Hidden expansion costs: Any increase in density often triggers new system development charges and connection fees — which can be prohibitively expensive
By contrast, a well-managed private system offers:
- Lower long-term operating costs
- Greater control over infrastructure
- The ability to scale or improve without municipal constraints
And the landscape is changing.
Lenders are becoming more comfortable with private utilities, and advancements in treatment technology are making systems more reliable, efficient, and easier to maintain.
Like anything in this business, the risk isn’t in the asset itself — it’s in how well it’s understood and managed.
If private utilities are a non-starter in your investment criteria, it may be worth taking a second look.
Happy to discuss.