I’m looking at a MHP with $40k in this expense. There are 30 lots with 19 park owned. 1 vacancy. I’m a newbie. This seems very high to me and is the highest I’ve seen for other MHPs in this same ballpark price and state. I thought this was a one time hit because the gas and sewer line was repaired, but the agent leads to me to believe that this is close to the normal amount for the 5 years of P&L that the owner has maintained. Does this seem normal to you ? I’m thinking that these must be some crappy homes if they require this much repair on an annual basis.Same park. The gross rents are 100k. The onsite manager expense is 8k (wife) and there is a Maint Personnel expense for 9k (handyman/husband). Is this around the avg cost for a manager duo for this size park?Thanks for reading.
With So many POHs, it is entirely possible the costs are accurate. Also with private utilizes as your earlier post suggest, it never know when the thing might blow up in you.
The total expenses could be as high as 50 per cent in a park such as this. Caution … make certain you use only lot rent income when analyzing the sales price. The maintenance costs will eat up any extra monies over the lot rent in most cases. Frank talks about givin the trailers away which makes management much easier and eliminate maint costs.
Good luck
Thanks for the response. Its funny that you mention giving away the trailers. I was thinking about selling them for $500 or something dirt cheap.