As new and used home available inventory continues to be pummeled by COVID-related labor and materials shortages, are park owners starting to warm up to the idea of allowing RV’s in their properties as a temporary NOI relief? We are considering this measure for our parks in the Southwest where the longer-term RV lifestyle is very prevalent.
Obviously there are many considerations such as a new set of applicable rules for RV vs MH, more intensive management needs for shorter-term stays, and lenders willingness to allow an increase of RV’s on the property.
Please comment if this is a measure you’ve considered recently.
Did you double check that the city or county has any rules about the length of time a particular RV can reside?
Did you confirm that you do not jeopardize the ability to switch back to MHs when the inventory is satisfactory?
A seasoned MHP owner in the south liked his arrangement of half MHs and half RVs BUT his location allows the RV to reside there as long as they like.
But I mention those two issues because the SE city where my park is has a rule that a given RV may only be there for 3 months at a time. Then they have to leave for at least a month before they can return for another 3 months; repeat… Requires more hands on than a MHs check in / check out with that kind of rule. And do you have sewer or septic tanks? If the latter and you have short term RV tenants is it too much risk to hope they will be careful about what they flush into the septic tank?
In my city, a property with MHs would be a Residential zoning but to allow RVs the property would need Commercial zoning. So if you took a portion of your property would you need to get permission to make it Commercial (or a variance) to allow the RVs? And if you want to go back to MHs on that portion of the property be sure you have no problem returning to Residential (get it in writing by the right authorities). In my case I have grandfathered MHs on a Commercial zoned property. I could remove some distressed MHs and replace with RVs but then I can’t change my mind and put MHs back on. You might not have such rules.
As mentioned, consideration given to zoning allowances pertaining to RV’s.
We also explored the option of tiny houses; zoning prohibited RV’s in this park and homes on a chassis were considered to be RV’s, thus prohibited for us. To remove the tiny house from the chassis would require a HUD sticker approval and the entire process of doing so.