I’m new to mobile home investing and am currently situated in Canada. I know the Mobile Home University course was geared more towards US investing. However, given how far I am away from the US and how I would like to have my investments within driving distance, is there anyone on this forum who has had success investing in parks in Canada? If so would you mind sharing your experience and if possible give me a few pointers. Were you able to find any industry trends, data, etc. online? Who are the major competitors? How lucrative is this industry in Canada versus the US? Is this industry growing? What are the major industry trends? Thanks in advance.
You might check with @Greg. I believe he is based out of Canada and might be able to give some direction on the topic.
Where in Canada are you. I know Ontario but not sure it translates across Canada.
The trend up here is similar to the US in the community being bought up by large investors.
Financing is extremely difficult to obtain as most Banks only know brick and mortar. Homes are more expensive. In my area a 1960s dump could sell in the 10,000 range and bringing in a new home will run $80000 + depending on the dollar. Most communities are around 30 homes and rural so you are looking at well and septic. Not a big deal just life.
Pricing is generally higher here than in the US.
@Greg thank you for the helpful input. I’m currently located in Toronto. Do you know where I could find any hard data/statistics on industry trends, etc. for Canadian parks and the market in general here?
There is no data in Canada that I am aware of. Every owner is an island operating without much contact with others.
If you are open to looking elsewhere I would suggest you look to the US or possibly out west.
The major problem with Ontario is rent control. Community residents tend to be long term and with rent controls there is no way you can bring the rents to market rates. It is not uncommon for lot rents to be $100 or more per month below market and even if they sell you can only raise the rents $50. This is slowly killing the small park owners in my opinion.
Because we have no organisation in Canada I doubt this will ever change. The government is ignorant to the problems. Ontario is such a nanny state it will not get better.
I’m just getting into mobile home park investing in Ontario.
I am interested in your comment about raising lot rents by $50? How is this possible? From my limited understanding of the rental laws each year the government releases how much owners can raise their rents. For example for 2016 it’s 2%. How are you able to raise the rent $50?
I am evaluating a park right now where the rents are about $100 under market value and would love to know if I have options to raise them.
You have no option to raise them for present tenants above the annual allowable as you have stated.
The $50 I was referring to is the max you can raise the rent when a tenant sells their home. You may charge the new tenant $50 more than the seller was paying.
If you have the money and a tenants rent is very low you have the option of first refusal on all sales. Once they have a accepted offer they are obligated to offer it to you at the same price. If you buy it you can resell it at any rent level you choose.
I have purchased and renovated/flipped numerious of the worst homes in my community and put the rents at market. I do this to also keep out the type of tenant that would be looking to purchase any home selling for under 30K. I usually resell in the $65,000 - $85,000 range.