I am closing on a park in about a week and I’m still deciding what to do with the rents. Here’s the deal:
Park is all TOH, no park owned homes.
Lot rent was raised from 300 to 325 in May 2019
Current rents are: $325, water and trash paid by the park
Market rent is $310, water and trash paid by tenant.
We are planning to install metron water meters shortly after closing, and then bill back water/sewer and trash as well. We’re trying to think what the best way to do this is:
Option #1: keep rents at $325 and bill back water/sewer and trash. The logic is that they probably aren’t going to move over an extra $15 in rent.
Option #2: Reduce rents to $310 and bill back water/sewer and trash. So we don’t have people moving out on us.
There are also some RV spaces, which are long term RVs.
RV rent was raised from 250 to 275 in May 2019.
Market rent is $375, with park paying water/sewer, trash
Option #1: Raise to $325 and bill back water/sewer and trash, this is about market
Option #2: Raise to $300 and bill back water/sewer and trash, this would be to avoid them leaving due to a big rent raise.
Thanks for your input,