I’m looking at acquiring a park that is predominantly composed of park owned homes and would like to transition them into owner occupied homes to relieve myself of the maintenance responsibility. What type of fallout rate should I expect with homes that are 20 years old? Also, the lot rents in the area are $375 for a single wide and lot plus trailer rents are about $550. If I sell off the trailers, how far would the rents fall given that maintenance service would no longer be provided?
If you tell people they have to buy them or move out, you’ll get probably 90% to convert.Don’t lower the lot rent at all. Of course, once you sell the homes, you will no longer get any money for the home rent portion.