The Conventional Wisdom of Owning a Mobile Home Park
According to Forbes Magazine, there were approximately 43,000 mobile home parks in the United States as of December 2021. The majority of these mobile home parks are owned by families or individuals in the community. Many of these mobile home parks have a resident property manager who receives a discount on rent, does not have submetering in place, and has not raised rent each year to cover cost. Let’s take a look at some of the problems these mobile home parks face and how a fast cash offer from Mobile Home Park Instant Offer can help you see some sort of return on your family’s original investment.
Not raising the cost of rent each year
Many landlords simply do not increase rent incrementally each year because they are too close to their residents. However, the cost of not increasing rent by a certain amount can be costly. The average trailer park rent for a lot can be anywhere from $125 to $800 per month in the United States. If you are on the lower end of this echelon, and you have a 20-park lot, raising your rent by $25 each year is an additional $500 you could make from your park. By not increasing your rent, your park is not growing for you as an investment.
Getting a fast cash offer on your mobile home park could be a great way to get out of your trailer park and move over to another, more attractive investment.
Not making sure that your lots have submetering
This is a major problem for trailer park owners. If submetering is not in place, this means that tenants are not responsible for their own utilities and you could be paying more for water and electricity than you should. Putting submetering in place can be an expensive endeavor, depending upon the number of units that you have. If you are paying too much for your tenants’ utilities and don’t have submetering, a fast cash offer can help you recoup money that you’ve sunk in your mobile home park.
You have a property manager who lives on the property
Most modern mobile home parks have a property management company that services the property.
If you have a property manager who receives free or discounted rent, they probably have another job and cannot respond as quickly as possible when something goes wrong for one of your residents. Additionally, this type of property manager might not be able to respond to more complicated types of problems, nor are they focused on maintaining full occupancy of your mobile home park.
Many smaller mobile home parks have not been improved for at least a generation
The average mobile home park owned by an individual in the community or a family gets an overhaul about once every ten to fifteen years. Owners very seldom make capital improvements to the property and therefore might not attract new residents or opportunities to make more money off the property. If you find yourself in ownership of one of these trailer parks, it might be a good opportunity to get a fast cash offer from Mobile Home Park Instant Offer.