List of Typical Park Expenses

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1

Hi everyone, I am underwriting a new park and instead of applying an expense margin to the park revenue, I am taking a shot at underwriting expenses individually. Below is the list I have so far, anything that I might be missing? Thanks!

Expenses
Sewer
Water
Electricity
Gas
Trash
Telephone / Cable
Other Utilities
Well Electricity
Well Chemicals
Lawn Mowing
Other Landscaping
Snow Removal
Other R&M
Tree Trimming
Septic Pumping
Septic Repairs
Mgr Salary
Mgr Rent/Utilities
Mgr Cell Phone
Real Estate Taxes
RET Reassessment
Admin
Insurance
Other
Delinquency
Licenses & Permits
Management Fee
Advertising - General
Advertising - New Homes

2

I realize that I’m probably missing expenses related to park owned homes. I know it’s going to vary widely based on a lot of factors, especially the wording in the lease, but what should I expect to spend per home per month. Assuming utilities are covered by tenant.

3

Don’t forget accounting and legal fees. Also, at time of purchase, new signage, letter head, business cards, etc. if your changing name or phone numbers.

4

Travel, don’t forget manager reimbursed for per mile and your own. Selling homes? Need to get licensed, salesperson licensed, continuing education.

5

Thanks everyone! This is helpful.