Mobile Home Park...Buying...Some Good Things...Thanks!


#1

QUESTION:

  • “What are some good things when buying a Mobile Home Park?”

My Husband and I own 2 Mobile Home Parks.

I am also a Licensed South Carolina Real Estate Broker-In-Charge.

Below are some items that are actually “Good Things” when Buying a Mobile Home Park:

  1. Seller - Who Spends Money On POHs:
    Sellers who spend money on Park Owned Homes is a good thing. If a Seller is not spending any money on Park Owned Homes, there is a good chance that there is a lot of “Deferred Maintenance” that the next Owner will be inheriting. Also, if the current Owner is not addressing issues, the quality of Tenant who will continue to live there is probably on the lower side.
  2. Seller - Who Spends Money On Drainage:
    For a majority of Mobile Home Owners, they just want to focus on leasing the land. Thus, one of the “Land Issues” is Drainage. It is a good thing if an Owner is spending money on this issue.
  3. Seller - Who Spends Money On Roads:
    Again, the roads are another “Land Issue” that any Owner should be concerned about.
  4. Seller - Who Installs/Updates Electrical Power Poles (Or Underground Electrical):
    There are quite a few Mobile Home Parks out there on the “older side”. These “Older” Mobile Home Parks probably have “older utilities”; some of which are probably Electric Power Poles with low AMPs. If newer Mobile Homes are moved in, these lower AMP Electrical Poles will not work.
  5. Seller - Who Spends Money On Individual Water Meters:
    Ahhhh…somehow IF we are not paying for the water, human nature tends to use “more” water. IF there is a consquence to using more water (ie…larger water bill), human nature will tend to reduce the water issue.
  6. Seller - Who Spends Money On New/Upgraded Water Lines:
    Again, the Water Issue. Leasing the “Land” requires that a MHP provide water. Thus, new or upgraded Water Lines hopefully means fewer repairs for the Owner.
  7. Seller - Who Files Evictions:
    Filing Evictions is a good thing. “No Pay, No Stay” is what Frank likes to say. Allowing Tenants to stay without paying is “Teaching” your Tenants that Paying is not necessarily a requisite to Staying.
  8. Older Mobile Homes - That Are Paid Off:
    Paid Off Mobile Homes tend to stay in a Mobile Home Park much longer than Newer, Mortgaged Mobile Homes that the Tenant needs to pay both Mortgage and Lot Rent.

We with you the very best!