I have a park where the rent is 300 and have a few park owned homes that are being rented. Is there a minimum I should be charging on the rental part of this? I want to eventually convert all these to tenant owned homes. Was wondering what people out there charge for their rentals. These are older units, not worth much, mostly metal on metal.
What you’re offering is basic shelter, and that’s typically about a $495 price point in most U.S. markets. The lot rent would be $300 and the home rent would be $195 in that example. But before you price them, do a market comp analysis of single-family pricing and 2-bedroom apartment rents, and see where the demand is for affordable housing. In Los Angeles, for example, $1,000 per month is still considered affordable, since the costs of competing housing is so high. You’ll affirm if you have the price right when you run your ad in the paper and Craigslist – your phone will either ring or not. If not,then lower it.
Frank,Thank you for quick answer. Right now I’m averaging around $115 rental rates - which is mostly inherited from when I bought park. I want to get average to about $175. Should I do a gradual increase in rents? or do lump sum increase of not more than $50 for now? I worry about putting too much burden on tenants but should I be?thanks
I would also suggest you get photographs of the insides of the homes. We are facing a similar situation with a park. My manager is going inside the homes, photographing them, taking care of safety and other repairs, and we will then know how much to sell the homes for to our residents.Good luck,-jl-
What are the market comps?