Starting in April 2025, landlords and homeowners in Gilbert, AZ, will see a 95% increase in sewer rates. Here’s what you need to know about this major utility cost jump and how it could impact your rental properties.
Key Takeaways:
- Massive Rate Increase:
- Gilbert’s Town Council approved a 95% hike in sewer fees.
- Residential customers’ monthly wastewater bills will increase by $29.56, nearly doubling the previous rate.
- Commercial ratepayers will also see significant increases.
- Why the Increase?
- The town’s wastewater system is underfunded, leading to a projected $38 million annual shortfall.
- Gilbert needs $230 million over the next five years for critical infrastructure repairs and upgrades.
- Officials opted for an all-cash funding plan to avoid a $110 million bond with an additional $72 million in interest.
- Impact on Landlords & Real Estate Investors:
- Increased utility costs will raise overall operating expenses for rental properties.
- Landlords may need to adjust lease agreements or increase rent to cover higher costs.
- Tenants, already struggling with rising rents and cost of living, may push back against additional expenses.
- Gilbert’s commercial real estate owners will also face higher base fees and volume charges.
- Next Steps for Landlords:
- Review lease agreements to determine if utility costs can be passed to tenants.
- Adjust rental pricing strategies to account for rising operational costs.
- Explore cost-saving measures such as water-efficient fixtures to reduce wastewater output.
- Stay informed on additional town infrastructure plans that could impact property expenses in the future.
Final Thoughts:
Gilbert’s sewer rate hike is a major cost shift for landlords and real estate investors. With rising costs across the board, staying proactive and adjusting investment strategies will be key to maintaining rental profitability. Now’s the time to evaluate your expenses, plan for the future, and stay ahead of policy changes that could impact your bottom line.
Want to see how this affects your utility bills? Check Gilbert’s official rate calculator: general.gilbertaz.gov/billcalc