Unlocking the Hidden Costs of Operating a Mobile Home Park

For mobile home park buyers, understanding the full cost of operating a mobile home park is essential. Often, there are hidden costs that can be difficult to anticipate. In this blog post, we’ll take a look at the biggest expense of owning a mobile home park and how to navigate it as a mobile home park owner and explore a path out of these annual expenditures that eat away at your bottom line.

Maintenance and Repairs

One of the biggest expenses of owning a mobile home park is maintenance and repairs. As with any property, regular upkeep is necessary to ensure the safety and comfort of the residents. But the cost of maintenance and repairs can add up quickly, especially in a park with a large number of units.

On average, mobile home park owners should budget between 10-15% of their annual gross revenue for maintenance and repairs. This includes things like plumbing and electrical work, roofing repairs, and upkeep of common areas such as playgrounds and landscaping.

To stay on top of these expenses, it’s important to have a solid plan in place. One option is to hire a maintenance staff to handle routine repairs and upkeep. This can be costly, but it can also save money in the long run by catching problems early before they become major issues.

Another option is to contract out maintenance and repairs to local service providers. This can be more cost-effective, but it’s important to have a reliable list of providers to avoid being taken advantage of.

Lastly, owners should be proactive in identifying potential problems before they become costly repairs. This can include regular inspections of the park’s infrastructure, as well as ensuring residents are following guidelines for the upkeep of their individual units.

Overall, maintenance and repairs are a necessary part of owning a mobile home park, but with proper planning and management, owners can keep these costs under control.

Taxes and Insurance

One of the biggest expenses that come with owning a mobile home park is paying taxes and insurance. Depending on the size and location of the park, these costs can range from a few thousand dollars to tens of thousands of dollars per year.

Taxes on mobile home parks are calculated differently than other properties because the land is not usually owned by the tenants. Instead, the tenants rent the land, and the park owner is responsible for paying property taxes on the land. The amount of property tax depends on the assessed value of the land and any improvements made to it, such as roads and utilities.

Insurance is another significant expense for mobile home park owners. Property insurance is required to protect against natural disasters like fire, flood, and storm damage. Liability insurance is also necessary to cover any accidents that may happen on the property. Insurance premiums vary based on the size of the park, the type of coverage needed, and the location.

As a general rule of thumb, park owners can expect to pay around $1,000 to $2,000 per year in property taxes and $2,000 to $5,000 per year in insurance premiums for a smaller mobile home park with 50-100 units. For larger parks with more units, these costs can easily exceed $10,000 per year.

Mobile home park owners must factor in taxes and insurance when calculating the overall expenses of the property. These costs can have a significant impact on the profitability of the investment. However, with proper budgeting and planning, these expenses can be managed to ensure the success of the investment.


One of the biggest expenses that mobile home park owners face is utilities. Many park owners are responsible for paying for water, electricity, gas, and other utilities that are used by the entire community. If they do not have submeters, then they are bearing a significant portion of this cost that they pass onto their tenants.

On average, mobile home park owners spend thousands of dollars each year on utilities for their parks. This expense can quickly add up and eat away at their profits, especially if they do not pass the cost onto their tenants. According to industry experts, owners of mobile home parks can reduce their utility costs by as much as 20% by installing submeters and charging their tenants for their individual usage.

When park owners don’t pass on the cost of utilities to their tenants, they’re not just losing money, they’re also making it difficult for their tenants to conserve water and energy. When tenants aren’t held accountable for their individual usage, they tend to be less cautious with their consumption and leave lights on, appliances plugged in, and faucets running longer than necessary. By passing on the cost of utilities to tenants, park owners create a culture of conservation, and in the long run, it can significantly reduce overall utility costs.


The management of a mobile home park is crucial to its success, and it comes with its own set of costs. As mentioned earlier, some park owners choose to offer a “free rent” provision for a tenant to act as the property manager. While this may save money on management costs, it can also come with its own set of disadvantages.

For example, a tenant acting as a manager may not have the necessary experience or skills to effectively manage the park, resulting in increased maintenance and repair costs. Additionally, it can be difficult to hold a tenant accountable for their managerial duties if they are also a resident of the park.

On the other hand, some park owners choose to hire property management companies to oversee the park. This can ensure that the park is being run efficiently and effectively, but it also comes with a cost. Property management companies typically charge a percentage of the park’s gross revenue, which can range anywhere from 5-10%.

For example, if a park generates $100,000 in gross revenue per year, a property management company could charge anywhere from $5,000 to $10,000 per year. This cost can add up quickly and eat into the park’s overall profits.

Ultimately, the decision of how to manage a mobile home park will depend on the owner’s personal preferences and budget. It’s important to weigh the pros and cons of each option and determine which approach will provide the greatest value and return on investment.

The Easy Option To Cut Cost: Sell Your Mobile Home Park for a Fast Cash Offer

As you can see, owning a mobile home park comes with many expenses, some of which can be difficult to predict or manage. While it’s important to take measures to reduce these costs, selling your mobile home park for a fast cash offer can be an even easier option to cut costs altogether.

By working with a company that specializes in buying mobile home parks, you can quickly and easily sell your property without having to worry about the costs and responsibilities of ownership. Plus, you’ll have cash in hand that you can reinvest in other opportunities or use to fund your retirement. So, if you’re looking for a way to reduce your expenses and simplify your life, consider selling your mobile home park for a fast cash offer today!