Anyone know a MHP Property Management Company in the Roswell NM area?

I’m in the process of buying a 58 unit MHP in Alamogordo NM. Do you guys know of MHP property management companies in this area. Alamogordo is in South Central NM and 100 miles SW of Roswell and 200 miles S of Albuquerque…

I’ve not had an opportunity to meet and talk to the owners yet. The broker is still working on the purchase Agreement. We have a signed LOI so far…

As per the broker, the current owner has arranged with a current resident to be the onsite ‘Manager’ in exchange for free rent. What do you guys think about such arrangements? Should I still keep the current ‘manager’ in the role after purchase?

I do not know one but a quick Google search indicates that there are a variety of trade organizations catering to these businesses. They would be able to refer some names.

I see several red flags in your post however. First, most property management companies do not know how to manage mobile home parks. I am afraid you will be very disappointed. Most mobile home park owners self manage their properties by themselves or by setting up their own offsite management companies to direct the activities performed by an onsite manager.

Second, you said the broker is working on the purchase agreement. I assume the broker works for the seller and does not have your best interest in mind. You as the buyer should be hiring an attorney to draft the agreement. Also, a broker is not a lawyer and is not legally qualified to do this. If the broker is using a standard residential real estate agreement template, then it will not have the terms necessary for a mobile home park which is a more complex transaction. I would be happy to look over your contract if you would like - just PM me.

The situation that you describe for management is almost the standard in the business. Our managers get free lot rent at a minimum plus more depending on the services provided. Only you will be qualified to decide to keep the manager or not based on your due diligence findings. Our experience has been about 50-50 where we had to keep or fire the manager.

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Thanks for the great feedback Mike! Yes, I would love to get your review on the purchase agreement!

Yup, the broker is the seller’s agent and is not an attorney. However, I am working with my business attorney who I am keeping updated on this deal. As soon as I get the purchase agreement from the broker, I’ll forward it to him for review. And I will surely forward to you to review as well.

I have created a business plan on how to improve this property and increase NOI during the next 3 to 5 years. Can you please review that as well? Since I’m based in Nebraska, my goal is to arrange to have people on the ground to work on this property full time from day-1 following closing. Since I have a full time W2 ‘day job’ I won’t be able to be on site full time…

What would be the best way for me to put my business plan in action for this park while being remote?

You have a good plan so far. Your thinking cap appears to be screwed on. Evaluate the capabilities and duties of the on site manager.

You are the new landlord, you are the boss, you set the rules and expectations. You have to decide what’s the highest priority (to fix or improve), what’s next, and what’s after that.

#1 job of the on-site manager is to collect the rent. If the rent isn’t coming in, you’ll have to find some way to get the rent due or the whole thing is a big waste.

#2 you want “eyes and ears” on the ground telling you the real true facts and what’s going on. How did the cleaning crew do? Did the plumber show up? Are there any resident complaints? Did the trees get trimmed or does the sign look good or whatever improvement you’re considering, did that get done according to your plan?

#3 you want someone who can be a “cheerleader” for the community, greeter, a friendly face that knows all the residents and their quirks and habits and exceptions to rules (always should be in writing in the tenants file of course). Personally I think exceptions to a general rule are fine as long as there’s a reasonable reason on file. Head of the phone tree for communications.

#4 You want someone who can sell your empty lots and increase occupancy** this is a big job!

#5 You may want/need someone to deal with the local government, the utilities, authorized to spend money, etc. This costs more, or you can keep this responsibility yourself.

#6 emergency - who answers the phone when it’s an emergency? You’re in a different state…

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This is great feedback, Thanks Brandon!

A couple of follow up questions just to brainstorm…

  1. There are other MHP’s situated all around my park. Could I possibly talk to some of those owners to see if I can get a referral for an on-site manager from one of those parks to also work on my park?

  2. When I search online for ‘MHPs in Roswell NM’ I do get a bunch of results. Could I start calling the managements in these parks to see if they have a referral or contact for me to call for park management?

I think those are bad ideas. Unless you want to get into bed with the other park owners I would not approach them for employee references. Independent contractors, that’s different.

I would also not approach residents of neighboring parks without a go ahead from the management. If they come to you, that’s a different story.

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Sounds good, Thanks Brandon!