Just a couple more recent publications that came out about large rent increases , thought I’d share If you didn’t see them
Thank you for sharing the articles.
Good thing Iowa doesn’t have rent control so the citizens of Johnson County can benefit from the additional tax revenue these high prices will surely command.
Root cause of the issue is mom and pop landlords not bothering to keep their rents at market. Tenants get a free ride for decades and then one day the real world comes knocking.
The blame falls on Mom and pop for large rent increases.
I’ll take this thread as an opportunity to purpose a scenario (before creating another thread for it).
If you were buying a park where the market rent was ~400, and the current lot rents were between $210 and $250 (varies by lot), would you A: Raise everyone $50 across the board, or B: raise everyone to $295? (or something else)?
I’m not familiar with the landlord tenant laws in TN, but I would give all tenants the same increase. Otherwise, you open yourself up for trouble when resident A talks to resident B and finds out that A’s increase was higher than B’s. I guess your response would be everyone pays the same amount now, but not sure it’s worth the headache.
Back to Greg, usually 100% agree. Without the true spirit of
entrepreneurs from the 1950-1980 most parks would not exist.
There efficiencies and need for less profits for their operations has created a present day storm of buyers who will chase a very low cap and than jack-up prices to sustain a less efficient model that has many MORE people on their food chain. If a family can operated a nice park at $200 per month and a out of town (buyer) owner want to raise it $50 so be it but remember with face book and other media the general public has more means to tell their story especially if the park is in New Jersey and the park owner lives in California. A park owner who lives in the town where the park is faces a little different exposure (easily available) and serves on local boards. We need to be very careful when our tenants do not have the means to easily move their homes and park owners use that as a wedge.
In Mo. the new law says MH owners must be given a 120 day notice for eviction and since our residents have the VOTES we need to tread very carefully in raises over $30 per year?? we might be inviting the devil more into our business. The other problem park owner face–recently complete DD on a RV park at Leesburg, Fl. With the new selling price of $2,300,000 the (real estate) taxes went from $18, 346 to $35,367 per year and with a net of $160,000?? 22% of net income goes for taxes or nearly $100 per day and hope a hurricane would not wipe us out… We walked away on the deal and are finding HIGH taxes are a problem or in this case in 7 years nearly $250,000 gone and if we sold in 10 years the taxes could be +$75,000. As mentioned before consolidation of this industry will make it very easy for government intervention and the VOTERS will win-AOC would be a driving force. Parks owners need to avoid negative news.