I’m looking at a park that has rents at market.
The only upside available is to sub meter the water and bill back the trash. Other parks in the area are including W/S/T, this would essentially bring the park to above market.
Tell me of your experience with this issue.
Do it. Tenants do not view it as a rent increase. Your only problem will be if you have renters. But anyone who owns their mobile home will not move it.
As a last resort, you could always lower the rent a bit. But you want to bill for both. You’ll find people conserve water (and trash - they take it to a dumpster at work), so your expenses will fall as well as your revenue increasing. Plus it is what is right for the environment.
Good luck,
-jl-
What do you recommend if none or few competing parks bill for water and sewer? Do you recommend billing as long as the total cost is competitive with parks that are all bills paid?
Thanks, Bob
We always bill for water. If the park’s rent is somehow way high to begin with, then you can always reduce the rents $30 or so, and bill for water, and get back to where your total revenues were. But by billing for water, your expenses will shrink (tenants will conserve water). So you’ll be at the same revenue, but with reduced expenses, when you bill for water. Your bottom line will grow. Your tenants won’t pay more, they’ll just use less water.
Always bill for water. Not billing at all, or doing RUBS, is for chumps. (:P)
-jl-
I would bill for water and not be concerned about being above market overall. I would also contact the neighbouring park owners and suggest they do the same.
Someone has to lead the pack.