I just ran across a park that had $60 lot rent. Lol. Ouch. Houses go for 40k. 3-400 app rents. 40% full. No metro.
Sounds like it’s a new basis for my comparisons.
Post the lowest lot rent you’ve come across in your hunting?
I have never seen less than $100. Any park near that I have seen is reasonably full even if poorly managed.
When you see apartment rents like $300 from best places and no metro it’s time to move on.
I’ve seen $75 rent, but never $60. But anything in that range – unless the market rent is $200 or so – we avoid like the plague. That’s why there is so little institutional ownership in the southeast, because that’s where those low lot rent levels are found. I’m betting the park in question is in Louisiana or Mississippi, as that’s where I’ve found $75 rents in the past.
This one was in Kentucky. First time I’ve seen anything like it.
I found a $65 lot rent in a small town in WV. That park had well/septic also. It was just outside of the Christiansburg, VA metro. An owner in Christiansburg referred that owner to me. Like Frank, we don’t actively market in places like that so it’s not a problem we see very often. Almost every market we focus on is above $200 on the market lot rent.