Amidst all the recent inflation, is everyone still using the same generally accepted park manager pay formula below?
-Free lot rent + $10/mo/TOH + $15/mo/POH + selling bonuses when homes sold
that seems awfully low these days and am curious on any learnings between paying around 20 dollars an hours vs 15 or minimal wage.
This is insanity… we pay our good CMs $40-50k a year plus bonus and full benefits. $10 per TOH lol
It is all going to depend on your portfolio and community size. I have some smaller communities and offer free rent and they meet-n-greet, mow the lawn. Anything extra, in 2023, I have upped it from $15/hr to $20/hour. I also provide a new resident bonus of $500, and if they renovate a home that is then sold, they get 25% of the profit.
Other communities that do not require much work, we provide a nice annual bonus. If we were a larger operation, I am sure the compensation would be more significant.
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Depends entirely.
A 50 pad turn key park that doesn’t need any work (infill, etc…) you can get away with less hours and less pay if manager is just answering phones and shuffling paper from time to time.
A 100 pad turn around project is a different story. Think infill, bad tenants, evictions, contractor work and management. $17/hr x 30-40 hours a week and scale hours and pay up or down as the project progresses.
We set a max percentage of revenue for management - all comes down to the scope, income and needs of the park. Everything is relative to income and scope.
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Agree with comments below. We pay just lot rent for a simple 32-space park in good condition with good tenants, and we pay upwards of $70k including commissions for a ~100 space park with park owned homes, new homes being installed and sold, which also includes a 15k sq ft self storage facility. We are looking at $20-$25/hr full time + commissions for another park that has some infrastructure work needed, infill and home sold through 3rd party financing.
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That formula in my original post is in fact what we are paying each of our park managers at the 5 parks we own. We started out paying much higher, but slowly have put better systems in place to reduce park manager’s responsibilities, for example no collections of rent and instead everything paid through PayLease and all park onboarding paperwork for new residents (lot lease, park rules) sent by off-site VA for electronic signing by park manager + new resident. I think @jferrari427 made a good point that figuring out a max percentage of revenue for management is good metric.
Previously @frankrolfe had always stated park manager pay should be more-or-less equivalent to the formula I mentioned originally (free lot rent+$10/TOH+$15/POH) but that was many years ago and I was curious if that was still applicable. Sounds like maybe or maybe not, and “it depends” might be the answer.
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Same here. We’re likely “below market” with our pay, but we also do a lot of administrative work in-house. We have one small and established park where the on site guy is happy with taking $150 off his lot rent. If everyone’s happy and the park is performing as it should, why worry about what pay should be
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