We all know instinctively that a well-researched model, perhaps market tested, with a low risk factor scenario, is fundamental to any healthy M.H. business.
We bought an acre of property adjacent to our little development to prevent a very successful S.W. entrepreneur from placing his units next to our D.W.s. We paid $18,000 for the property, which he had acquired a short time before for $6,000 at an estate sale. It was a happy closing for both.
From him and from several of his tenants we learned that his “park” contains 40 units, all S.W.s, with birth dates in the 70’s. He rents the homes from $85 to $100 per week, with a $150 deposit. Monthly rents range from $350 - $400. The tenants pay for all utilities: water, sewer, garbage, and electricity. No paperwork of any kind is required. He does do repairs, but “his” style. His rules, which every tenant seems to be very familiar with, are: 1. pay the rent when due; 2. no refuse or storage on the property; a visit from the constabulary is an automatic eviction, again, by “his” style. He claims that he has never been in court with a tenant. He rents to families who have “some” furniture and demands employment verification. His target clientele is low class stratum who prefer to live elsewhere but are restricted by their income. He refuses to cater to welfare recipients. His business model has been and is performing quite profitably.The only detractors he has in town are those who are obviously green – with envy. He does not seem to mind their criticism. He services a niche in our MH industry which has a bright future.