Factors That Could Keep Your Mobile Home Park From Selling Through Conventional Channels

Over the years, mobile home park owners often miss opportunities to increase revenue and cut costs on their properties. Maybe they didn’t raise rent incrementally each year or maybe they missed out on the opportunity to make upgrades that would increase the park’s value. Let’s take a look at some of the steps that successful mobile home park owners take to increase their revenue and property value each year. If you’ve missed out on some of these opportunities, it may be worthwhile to consider getting a cash offer on your mobile home park.

Increasing Rent On a Reasonable Pace With Inflation

Depending upon where the trailer park is located, a renter will likely pay anywhere from $150 to $800 each month. In some areas of the country, rent in a trailer park may cost up to $2,000 per month. If you are collecting a rent that is on the lower end of that spectrum, you likely haven’t been increasing your rent each year to keep up with inflation.

If you are looking to sell your trailer park and your rent hasn’t been increasing steadily each year, it’s going to be hard to find a buyer because the rent won’t be as attractive as other property investment opportunities. This is a situation where it might be appropriate to get a cash offer on your park from Mobile Home Park Instant Offer.

If a new owner were to drastically increase rents on each lot, they might encounter a vacancy problem that would make it harder to make an attractive income off of the property.

Also, lower rent levels can be indicative of the type of shape that the mobile home park is in. Charging higher rents over time will attract tenants that are more likely to take better care of the property.

Your Lots Are Not Submetered

The odds are that if you own an older trailer park, each of the lots are not submetered. On the low end, setting up submetering could cost you $400 per lot. It could end up costing you as much as $700 per lot. If you own a 40-lot mobile home park, you could be spending $30,000 to set up submetering. Most prospective mobile home park buyers are not going to want to buy a park if it is not submetered.

If your water or sewer is costing you more than $50 to $80 per month, it is also likely that some of your main water and sewer lines have leak issues.

If you are the owner of a lot that is set up without submetering, it might be best to consider a cash offer on your mobile home park rather than selling your mobile home park through a realtor.

Vacant Lots Will Keep Your Mobile Home Park From Selling

Most mobile home parks have a few lots that are not rentable because of the condition the mobile home is in. Over time, it can cost an arm and a leg to renovate a mobile home. It could cost anywhere from $2,000 to $7,000 to put a new roof on a mobile home. Moving mobile homes on and off a lot can also be cost prohibitive. Single-wide mobile homes can cost anywhere from $1,000 to $8,000 to move. Double-wide mobile homes can cost anywhere from $2,000 to $16,000 to move.

If you have vacant lots on your mobile home park, you might not get its full market value if you sell through conventional channels. Consider a cash offer on your mobile home park if you have vacant lots.

Your Mobile Home Park Is Too Small To Attract a Buyer

Smaller mobile home parks are often a turnoff for certain types of buyers. There are generally two issues that turn off buyers to smaller mobile home parks:

  • The rental income generated from owning a smaller mobile home lot often makes it difficult to budget a property manager.
  • For many buyers, finding financing on a smaller mobile home park is often difficult since many banks often won’t do a loan for under $500,000.

If you have a smaller mobile home park, you might consider doing a cash offer through Mobile Home Park Instant Offer.

Rent Collection Is An Issue

During the pandemic, many states created varying eviction moratoriums. Some states still have eviction moratoriums that are in place until the end of 2021. For some mobile home park owners, eviction moratoriums have turned their mobile home parks into a financial liability. In a survey conducted by the National Rental Home Council, 11% of rental property owners were forced to sell at least one rental property and 12% of rental property owners were forced to sell all of their rental properties because of the pandemic.

Sometimes, a cash offer may be the only way to prevent a foreclosure on a mobile home park.

Liabilities That Are Associated With Your Mobile Home Park

There are other issues that may make it harder to sell your mobile home park through conventional channels. For example, tenants with dangerous dogs could present a legal problem that a prospective buyer does not want to deal with. Unrepaired damage on rental homes from past tenants can also keep a prospective buyer from purchasing your mobile home park. Many older mobile home parks have issues such as potholes, slip and fall hazards, and other liabilities that could keep your park from selling.

Work With Mobile Home Park Instant Offer

We can get you a cash offer on your mobile home park in as little as 24 hours. We take care of inspections and repairs and can get your trailer park off your hands. If you have any issue that keeps you from selling your mobile home park through conventional channels, get in touch with us today.