Park manager is asking for a loan

My park manager says that his home needs a new roof and it will cost about $3000. He is asking me to lend him $3000.

How would you handle this? Thanks.

@GJS , as per your post:

  • “My park manager says that his home needs a new roof and it will cost about $3,000. He is asking me to lend him $3,000.”

Personally, I would not loan money to anyone (Park Manager nor Tenant).

You are a Mobile Home Park…not a Bank.

I would just state that the Structure of your Business is not setup for Loans.

We wish you the very best!

It would depend on how long he has been a manager for me and how reliable he is.
I make loans as a income stream and have made loans to some of my contractors and tenants. It comes down to a business decision.
Loans can be another income stream for a MHC owner. Tenants borrow to make home improvements, purchase cars, appliances etc. I always charge interest (8-10%) which is less that credit cards or personal loans for the tenant. Many can not get loans from a bank but my tenants are not mobile like many in the US so I do not worry about non payment.
As long as you draw up a contract, have perhaps his vehicle as collateral, and charge a reasonable interest rate it is all good.

I probably would make the loan. I figure a bonus into my managers pay system. We all have differing ways of keeping our managers happy.

A quick story- just last week I had a situation where we had a burned wire in a weather-head (meter bank). The electric company shut the power to the meter bank, putting 9 lots in the dark. They would not reattach until the old meter banks were brought up to code. The manager was up for the next 48 hours straight working on the problem. In the end, the issue was managed and I did almost nothing. They got pre-approval from the electric company for solutions to issues they had to skirt the code on, and I did not fly out, I did practically nothing.

I asked the manager if I should fly out and help shag parts, manage the process etc… His reply was clear. “Jim, if I am the manager here, and I can not solve this electric problem without you looking over my shoulder, why do you have me hired? I got it, I will keep you updated.”

My managers are valuable. They have easy months, and hard months. We all have easy and hard months. Some people have saving accounts to carry them through short months, some use home equity loans. What options have your manager been dealt?

last point- 3k for a roof sounds high… I might help them find a better price to replace that roof. I would give the loan. And when the power company throws a wicked curve ball, I know for times past my managers will take point and work tirelessly to maintain the integrity to the park they manage, which also happens to be a property I own… 3k loan -vs- my 1mm in park value…

I know opinions will differ on this topic…

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