Hello All-
In your experience, does a smaller lot with a smaller (1 bedroom mobile home) obtain the same monthly lot rents as a larger lot (with a 2 or 3 bedroom home) within the same park?
If not, if the larger lots go for $215 per month then what would be the right price for a smaller lot in the same park?
(My park is in North Carolina)
Thank you!
Justin
Same rent regardless of the size of the lot in my park. The only exception would be in the case of a double lot which would pay more.
Can you explain your reasoning on charging the same rent for various sized patches of land? I find this curious. Is it to make accounting easier?
The purpose of the rent is to allow the owner the right to place their home on the property and benefit from the services provided by the park. The cost of operating the community and provide a profit to the owner is, in theory, divided equally between all residents. Each resident should carry the same financial burden regardless. The rent should not be determined by square footage of the lot.
Regrettably, in districts such as mine that fall under rent controls, there is no way to have all residents carry their fair share of costs. This results in newer residents carrying a far greater share of the costs.
Lot rental rates are best determined and imposed equally for all residents regardless of lot size.
Interesting statement about rent control. What is the spread on your oldest rent controlled tenants versus new ones at market?
Thanks for sharing as it’s a topic covered some here but not a lot shared about its impact in those markets.
My oldest tenant is at $152/month, current market rent for new tenants is $300. Rent increases for the past several years has been 1.8%. The majority of the cost of operating the business is a unfair burden on the newest tenants.
Rent control is putting a great deal of pressure on our business since the majority of tenants in our market stay very long term. After a new tenant moves in their rent will never be at market again.