Valuating Fixed Fee Income


I’m looking at purchasing a park that has average lot rents of 200 but requires tenants to pay additional FIXED monthly fees for items such as trash ($20) and maintenance ($50). The maintenance program only covers the lot for standard upkeep and not the actual MH. How do I evaluate these income streams?

Any clarification is greatly appreciated!


This sounds silly.
You should adjust those fees so they are just part of the lot rent. Sounds like lot rent should just be $270.
If the tenants are required to pay these “fees” why not just say lot rent is $270 and includes trash?

You need to run the numbers on how you would run the park, not how the old owner does things. Sounds like a bunch of wasted mental energy separating the costs.


I would just add to make sure the break outs of what ever you are billing is in compliance with state or whatever other regulatory body there is. I don’t know if thats the case here but just FYI .


Is the community in a rent controlled state.
Additional fees are used to bypass rent controls.