I bought a small mobile home park 23 units , it needs little bit cleaning up some road patch , lights, trimming trees and stuff . I want to raise the rents $30 each space , should I wait after I fix the park up little bit or should I do it from the beginning now .
If your rent is under market rates, do it now. Then start your cleanup. Tenants will see the efforts and understand that paying more gives them a nicer place. I have regretted waiting to raise rents in the past.
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I would do it immediately, residents will expect it with a transfer of ownership, then once the updates are completed (on the anniversary date) you will be in a position to justify your next significant increase.
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“justify your next significant increase”. We are in the process of purchasing a retirement community and our purpose is to enable seniors to live in dignity and within their means. This means to us not to treat them as a cash cow but as human beings, making a decent income but at the same time leaving them the means to keep their homes and grounds up and be able to eat regularly.
The idea that this is not important seems to violate a normal person’s sense of decency and fair play. Am I the outsider here or do others believe in taking the high ground in all business dealings.
Thanks for having this forum.
Ammy
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Yes. Providing social housing is a noble venture but not a business.
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Ammy,
You are not the only one who feels that way. I also agree that we need to be decent and fair and treat our tenants with respect, which we do. However, if the rent is too low, the venture is not sustainable. Therefore, to meet the goals you outlined, the rent must increase, sometimes substantially. When we buy a run-down park, the acquisition comes with tenants who live in squalor because it is the only thing that is within their means. We require a certain minimum standard of living and that costs more money than running a slum. For example, we fix homes, pave dilapidated roads, cut unsafe trees, etc. When we raise rents to compensate, some tenants who like the squalor can no longer afford it in some cases, so they leave.
Greg, you are correct. The government runs housing projects for social housing.
mPark
We all know how successful that is. We can do better .