The park I’m buying has well below market rents. The park 1 block down the street has lot only rents of $385 and is very comparable, but has a pool.
Any suggestions as to how I need to adjust, if at all for my park since it does not have a pool?
Thank you.
The pool is not of any value in the rents. Run a test ad and see what the demand is in that market. Less than 10% of park residents use a pool, so it’s not that big a deal. What makes the park down the street a good comp or not is the overall “feel” of the community as far as attractiveness, location, safety, etc.
Thanks Frank. I ran the test ad twice at the higher rent figures. Both times I had to pull it within a few hours as my phone was literally ringing non stop. The second time I ran it I got 17 calls within 3-4 hours. That’s the main reason I’m going forward with the deal.