Has anyone compiled cost breakdowns for the various costs to fix up a rental unit for new tenant. In the apt industry they are referred to as "make ready " costs. If there is a park with 100 rental homes,what should the park owner budget for annual rehab expenses? I would be glad to share our experience with you.
Our experience has been that we loose about 1/3 of the mobile home rent to rehab and makeready expenses. So a typical 3BR/2BA that rents for $300 on a $200 lot ($500 total monthly payment) would need about $100/month repair and makeready costs. These are direct costs (materials and labor) and do not include management, advertising, insurance, taxes, etc.
Interested to hear what your experience has been,
-jl-
Hi Jefferson,
I’m very interested in your experience of 33% expense ratio for rehab/make-ready. What do you find as your total expenses for rental of mobile homes (not including loss due to vacancy)? In other words, what happens when you add in management, advertising, insurance, taxes, etc?
Thanks,
Brandon