I am a new park owner. The park is a real fixer and I was lucky to find a young couple who recently started a management company for MHPs. They are local, very enthusiastic about helping to clean up and fill my park and seem to know what they are doing. They also provide me with cheap hourly labor for the cleanup. They charge 8% of rental income. I just got their first bill and they are including the pass through utility income (sewer/water/garbage) in their total rental income value. Is this right or should I call them on this from the get go? I plan to take over management once the park is stabilized. Sue
Water, sewer, garbage is not Rent income. If the city provided this service the young couple would not send the city a bill for it as part of their services since it’s just a pass through.
I would think about taking these people completely out of the money loop and have tenants deposit directly into your local bank account or other direct pay options. Then you pay them based on your collections, not whatever they tell you.
I just checked the contract. It reads 8% of all gross revenues. My bad. I will very soon be taking them out of the rent collection loop. Thanks for your input. Sue