Low Move in and Weekly Rentals


#1

I promised to give an update on the low move in and weekly rentals, I


#2

Ryan,

As always, thanks for all the info. This is important for us noobs to see some of the conditions that MHP operators are faced with. I especially like the detail you are providing because it gives us some insight into your strategy.

I have a couple of question?

  1. In many instances you mention short terms (like 3 months, or 6 months). I’m unsure of what you mean by this. Do you mean that you create a rental contract for only 3 or 6 months? If so, why? Why not just have them sign a 12 month contract?

  2. How are the section 8’s working out for you?

  3. Do you start everyone on monthly, then if they get behind, you force them into a weekly or bi-weekly? Would that be a good approach, or do you still just offer weekly from the beginning?

  4. You’ve probably covered it before, but does the added administrative burden of the weekly collection make it worth it?

Thanks again for your always insightful posts. Just want to let you know that there’s probably a silent majority that pays close attention to what you post!


#3

Rick,

Sorry for the confusion, the term in this case is how long the tenant has been in place. All of our leases are month to month or week to week with the exception of the S8 tenants.

Overall I like Section 8, the inspections are a hassle but so long as your inspector is decent it can be a very good way to secure mortgage money.

I start people out how ever it makes sense that they can pay me, there is a little more work with weekly rentals for the first few months. You have to train the tenants or they’ll train you, it takes more effort on their part to make the trip to the bank every week. For the first couple weeks I often will show up at their doorstep after 5 pm on the due date if they didn’t pay, it doesn’t take long and they get the message. Weekly rentals are not for everyone but I like them for my older units that tend to have longer vacancies waiting for a good monthly tenant. Only suggestion I have is to try a couple and see how you like them.

Best wishes,

Ryan Needler