I’m new to the MHP business but have a fair amount of
experience in virtually all other types of commercial real estate. I am also
attending Boot Camp in Vegas next week and am studying the DD manual and Home
I am currently negotiating a PSA on my first park with a
seller whose park is on a “privately operated and maintained” sewer and water
system where the park owner pays the 3rd party private utility operator a fixed amount
per occupied lot per month for water and sewer. From what I know at this point,
the private utility services the 50 space park, a public golf course, and about
50 single family residences on its sewer treatment facility and water wells.
My questions are:
Has anybody else purchased/owned a park in a similar setup? If
so, how was your experience?
Should this arrangement be viewed similar buying a park on
city water/sewer since the private utility operator is responsible for compliance
with all applicable laws and maintenance of the main lines to the park boundary?
Why or why not?
Are there additional risks for service interruptions (more so
than city service) simply because it is privately operated and maintained or
will governmental entities, such as the public service commission or department
of natural resources, regulate the utility operator for quality control to
ensure residents receive adequate and consistent service?
Any thoughts, guidance, or war stories would be appreciated.