Purchased Park with $150 Lot Rents. Market is $325. How much should new Lot rents be increased?
Why are you only raising “new” lot rents? All lot rents should be raised. I would suggest going to $225 for 2015, then to $300 for 2016 and then probaby $350 in 2017. But you better get a good handle on the real rents in every park and what utilities are included.
All lot rents will be increased. Thanks for the advice.
BillyRay, you now have me curious about your MHP.Who did you buy the MHP from (Mom & Pop, Investor, Bank)?Which state is your MHP in?Why are the current Lot Rents so low?What is the makeup of your MHP in terms of Owner Occupied Lots & POH’s Rentals and Other Rentals?Thanks So Very Much!
We purchased a park two months ago and immediately sent a rent increase letter. The rent went from 235 to 365. We did not receive a single phone call complaining about the rate increase. The residents know we are still slightly under the market. There is one person who asked to give us their home because they can’t afford the increase. Otherwise everybody else is now paying the new rate.