I’m looking at a first MPH purchase that has 40 tenant owned lots (100% occupied) and has city sewer and city water. Since there are no park owned homes does anyone know the average time I need to visit this park. What I’m getting at are what problems do I need to deal with if the water and sewer pipes are in excellent condition and the homes are about 20 years old and are owned by the tenants? Can I just give a resident free rent to monitor. I realize i need to take care of the roads and park owned lawn and collect rent and deal with garbage removal and cleaning up property once in a while as well as some tenant issues. Am I missing anything else. Can I live 4 hours away on my first purchase?.
My other question is rent collection. I own multi families where the tenants just pay online via e- Rent. Is that even remotely possible with most MPH tenants?
The answer is ‘it depends’. Generally you should go twice a year if your park is running fine. If I lived 4 hours from my park I would go probably 5 or 6 times a year - it requires a bit more attention.
Yes, you could work out a deal with a resident of the park to be your eyes and ears - you’ll need someone to call the plumber when there is a sewer back up and you’ll need someone to call you if there is an emergency, etc.
It could be possible to have your tenants pay online - however not all of them may have internet access or have a computer (like the elderly lady standing in front of me at the UPS store on Monday purchasing a certified letter so that she could get proof of delivery rather than track the package online). Another option would be to have them deposit their rent check into your business bank account. Most mobile home park residents pay with money orders… probably because many don’t have a bank account.
Might take a little time up front while you get your house in order ( i.e. processes , protocols etc) . But 40 TOH no poh city water and sewer is not really many moving parts and thats kind of the best park to own. Might depend on any deferred maintenance but really shouldn’t take too much time.
Good question Mitch. My park sounds similar to the one you’re thinking about purchasing. I have a part time resident-manager and give them a stipend plus free lot rent. I plan to visit the park 2-3 times per year (unannounced). Honestly things are running very smoothly so I see no reason to go more often than that.
Yes you can manage the park being 4 hours away and yes you can get MH tenants to pay online, but it could be a challenge. I know some owners make it mandatory for all residents to pay online. I give the option to pay online, check, or money order. It’s really not an issue for me to go to the bank once a month to deposit checks, but I know some people are very picky about that kind of thing.