Lot Rent and Unit Rent Spread


#1

Does there need to be a certain POH lot to rent spread in order to cap the claimed lot rent.

For example:

Lets say the seller has ,

20 POH lot rents at $350 with an additional $300 in home rents

and,

20 POH lot rents at $350 with an additional $100 in home rent

To me a $100 spread between lot rent and home rent means I’d likely lose more than that $100 a month due to management cost, repairs, insuring the home, hassle, ect. Also, that spread won’t allow for bringing in a new home. Is there a minimum spread needed to account for the home rental part? I could raise the tenants rent $200, but they may leave of course and I don’t want to pay for spaces with that risk.


#2

See what the competition is doing and your test ad will confirm. 2x spread or more is the most common. When it goes below that the market is typically poor. And nothing says Happy Valentine’s Day like raising rent 300%.