I own 2 parks, each was purchased as a turnaround park. I have made some good improvements with these parks, but I still have a ways to go to get them where I want them. Wondering what items you concentrate on first, then what items next.
First I identified and got rid of the worst tenants by offering to buy their homes from them, I then fixed these houses up and got good tenants in them. I then did little things that the tenants could see such as patching potholes, improving drainage, filled empty lots etc. I then raised the rents to $20 under market. Both parks cashflow nicely now and have for years this way. I still have some issues such as tenants that refuse to follow the lease, too many cars, pet issues, roomates not on the lease, junk in yards etc. I can’t seem to get these changes made. I send lease violations, I knock on their door to discuss these issues and nothing seems to change. How can I get these tenants to follow the rules? I could end their lease, but that costs me cashflow as now I have a lot thats not bringing in rent each month. What have you found to work in these cases?
Also, if I can get past that hurdle ,what else can I do to improve things at the park? I’m thinking of seal coating my road, nicer sign at the entrance and some nicer poles and signs within the park just to increase the eye appeal of the park. I would love to move out some of the older homes and get newer nicer homes in their place, but thats hard to justify when the current old home is bringing in rent every month? I’m looking into watermeters, I believe they could help cashflow alot.
How do you decide what to do in a turn around situation? Am I thinking correctly here with my ideas or should I be doing other things to turnaround the park?
I wouldn’t mind owning this park for 10-20 years if could get it to have some great appeal which would allow me to increase rents even more and cashflow the heck out of it. Right now, I just don’t think it has the eye appeal to really maximize rents but am having a hard time justifying pumping money into to get that eye appeal.
Kind of a rant, just wondering if my focus is right? or if anyone can help me with ideas to get this part better tuned.