Mobile Home Park Utilities and Infrastructure: Water, Sewer and Electric
Underneath the streets of many parks runs a network of pipes, wires and systems that the park owner, not a public utility, is responsible for. Some parks connect to public water and sewer at the property line; others draw from their own wells, treat their own wastewater or rely on septic systems. Some distribute electricity through a master meter. Mobile home park utilities can be a significant source of risk and cost in an acquisition, so buyers and lenders review them carefully.
This article describes what buyers of existing, operating mobile home parks may want to review during due diligence. It does not cover financing for system replacement, park improvements or adding lots. Utility regulation, permitting and billing rules vary by state and locality, and buyers should rely on qualified engineers, licensed utility operators, environmental professionals and counsel. Nothing here is legal, engineering or regulatory advice.
Water Service
- Whether water comes from a public system or from wells owned by the park
- Permits, testing records and any notices of violation for a private system
- Who operates the system and whether a licensed operator is required
- Age, material and condition of distribution lines, and history of leaks or breaks
- Whether residents are individually metered
Sewer and Wastewater
- Whether the park connects to a public sewer, operates its own treatment system or uses septic
- Discharge permits, inspection reports and compliance history for private systems
- Condition of sewer lines, lift stations and septic fields
- Any planned public sewer extensions and related connection obligations
Private wastewater systems can carry permitting, operating and replacement obligations. An inspection by qualified professionals is often an important part of the review. Our article on the mobile home park environmental review explains related environmental questions.
Electric and Gas
In some parks, each home has its own meter with the local utility. In others, the park receives power through a master meter and distributes it through park-owned lines and pedestals. Master-metered systems can leave the park responsible for maintaining that distribution system and for billing residents, subject to rules that vary by state. Gas service, where present, raises similar questions about ownership, metering and maintenance.
Billing Utilities Back to Residents
Whether and how a park may charge residents for utilities depends on state and local rules and the terms of the leases. Buyers should confirm the method used, whether it is documented in the leases and whether counsel considers it permitted. These charges affect income and should be reconciled in the rent roll review.
Streets, Drainage and Shared Facilities
Roads, drainage, lighting, a clubhouse, laundry or storage areas are also part of the property. Their condition affects resident satisfaction, insurance and future costs.
How Lenders View Utilities
Lenders may require engineering or property condition reports, evidence of permits and compliance, and reserves or repairs for identified issues. Private systems may lead to additional review. Our guide to mobile home park loan requirements describes the reports lenders frequently request, and our mobile home park due diligence checklist places utilities in the broader review.
Utilities, Zoning and Value
Utility capacity and permits can also interact with zoning and the ability to replace homes. See our article on mobile home park zoning. The cost and condition of infrastructure flow directly into price; see our guide to mobile home park valuation.
US Professional Funding helps buyers finance the acquisition of existing, operating mobile home parks after a careful review of the property. Learn more about our mobile home park acquisition financing.
