Anybody with experience in the park owned home space have input on expense ratio for 12-20 unit communities? I take really great care of these tenants and I know I’m high and these are older… about 50% expense ratio. What I’m really wondering on is RNM costs you’ve seen at your units. I’m at about $36K for 12 homes… and that’s not Capex. Looking at another one that has 20 homes and seller is proformaing 28K… these are 2005 and newer.
What is RNM? Receivable Net Memo? Regional Network Management? Remote Network Management? Reserve Not Met?
Repairs and maintenance… R&M… excuse me!
I have 13 1990s units in my mixed TOH/POH park. We have owned the homes for 20 years and take very good preventative care of them. We run a 35% expense ratio but have a 24 hour per week maintanance manager we pay very well to take care of our assets.
28k seems a little light on that 20 space park but a lot depends on it’s location. At close to 20 years though I would be looking at the roofs, water heaters, furnaces, appliances. Clock has ticking and alarms may start going off soon.
I may be apples to oranges to your situation but for what it’s worth…
Roger
No… this is incredibly helpful. My 12 unit one is starting to have AC issues… started a lot of preventive measures. Decent roof condition. The unit one I’m looking at has really good roof condition. A 24 hour a week maintenance man… what all does he do for you? This market I’m looking at may have access to something like this.
We have a park website that has all our homes listed, lease docs, park rules, pet rules, contact info, etc. We also have ‘maint/repair request’ tab to submit repairs- no matter how small. He can handles all landscaping, construction, plumbing, most electrical and some HVAC. I get cc’d and he handles all of those plus additional projects throughout the park. Just installed new mailboxes and put in two additional lots- so he is out front on all that. I live 4.5 hours away so it is beneficial to me. We pay him very well for the area with paid holidays, vacations and an annual bonus based on park performance. Bottom line is we bring in considerable revenue on our rentals above and beyond the pad rental. We basically split that with him 50/50- his 50% includes his wages and materials. Everyone benefits in the shared results.
I get beat up a little bit on this site for my approach and careful support of POH rentals… but it pencils well so we press on.
As a side note we stopped doing AC and providing washers and dryers about 10 or 12 years ago. Renters have to provide their own units in our rentals.