Good day to everyone,I was wondering if anyone had any rough estimates on what type of expense load a portfolio of POHs sitting in a park would incur, as a percentage of revenue? I know that the home business is not a long term business to be pursuing, but for a park that comes with a sizable home inventory, I am trying to determine roughly the percentage of revenue that will go back into maintaining these homes and fixing problems as they occur - and not including the initial expense of rehabbing homes as need be.I assume that the percentage will be significantly higher on 70s and 80s homes than on the 90s and 00s homes. I am trying to determine how long I will need to run a rent credit program for, and obviously that is a function of both the home rent and the expected expenses on the home (not including registration fees or other items that are easily predictable). I am assuming that the tenants who will be in the homes are basically responsible people, i.e. not actively destroying the place, manufacturing meth, ripping out the copper, etc, but that there will still be reasonable expenses that occur.Also, has anyone using Frank and Dave’s “get the tenant to pay for everything under $100” model found that that significantly changed the expense ratios? I am interested in renting homes only to rent credit customers who have some reasonable interest in eventually owning the home.Many thanks!
The expenses for my homes are 44%. These are 80’s and 90’s homes in a lower income park.
Is that 44% on just the home rental income or the home and lot rental income?
Thanks Josh! Out of curiosity, are those straight rentals or do you have people on RTO contracts?