I’ve been reading your threads here and they are very helpful, thanks for all the knowledge! I thought I would put out a question to see if all of you might have some insights.
We are involved in a MH park in Florida and I am helping to bring the rents up to market rate. Currently the rents are far below market rate (30%!) and we pay for all utilities (water/sewer, trash, landscaping). To bring the park up to par with comparable parks in the area we are considering:
Raise rents to market rate (10%/yr.) and we continue to pay utilities (don’t have to deal with utility billing)
Raise rents gradually over 4 years and add one utility to the tenant’s bill each year (ie. $10 increase in rent and install meters so tenants pay water / sewer costs.)
Raise rents gradually and charge a flat fee to each tenant for water / sewer based on avg. water cost for the whole park. (Can you do this?? Will tenants balk at splitting of the bill equally?)
Generally, what is a fair amount to raise the rent that you have found is tolerable to the tenants?
Any thoughts and insights would be greatly appreciated. Thanks!