IL - Mobile home owners fear they may be priced out by rent hikes - MHU mention

[jhutson]

Frank Rolf disagrees with you.

Lot rents compared to apartment rentals

We use 1/2 of apartment rent as a guideline in approximating lot rent levels. For example, if a two-bedroom apartment rents for $800 per month, then we would estimate that a good lot rent ceiling would be around $400 per month. Of course, this is not set in stone and, in fact, many REITs and others might charge $550+ per month under this scenario. But the point is that lot rents have to tie back to economic realities, and you can’t have a $400 lot rent when apartments rent for $300 per month. Wh…