Process for raising rent upon purchase of a park

The MHP I’m considering has a variety of rent prices for the 58 tenants. Rent ranges from $90 -$150. The average rent price in the area is $200. (Missouri park)

What’s my best option to ensure everyone is paying the same rent?

  1. Raise everyone gradually to $150 then to $200 a year later?
  2. Should I raise the rent to $200 after purchase?
    I’m worried that $200 is going to be a huge leap for some.

Thank you in advance.

I probably wouldn’t do it in one whack, I’d plan on getting to market over maybe three years (this is assuming you’re making money with rents as-is). The $90 folks get $40/mo raises each year, not crazy. Even if they’re paying utilities $200 a month no one can complain they’re not getting a good deal


Raising Rents-
Since you have inherited legacy residents with below market rents: Now is the time to passthrough the utility expenses to your residents in leu of of a gigantic leap to market rates.

In addition taking the utility component out of the rental equation:

  • Increases the value of your MHP;
  • More marketable to future tenants;
  • More marketable to the next MHP owner.

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