There are some things you should know about building a mobile home park before you get started. Building a mobile home park can be a worthy endeavor with the right ideas and circumstances in place. But it can also be a heavy burden if you don’t take the time to weigh the benefits and needs of such a big project.
From investing to location, we’ll discuss some important ideas to consider. Mobile home park development is not something you should walk into blindly.
Things to know before you start building a mobile home park
Building a mobile home park is something that can go horribly wrong if you’re not careful. Let’s look at some of the things you should know before you take on an investment.
It’s an investment
In a nutshell, building a mobile home park is an investment. It’s an investment of time, energy, and money. According to Visual Capitalist, forty-two percent of small businesses fail because “there’s no market for their product or service.” Time and resources ought to be invested into the planning stages as well as the execution of your park.
You want to start your idea right from inception. If you start right, you’ll end well. And ending well doesn’t mean that you went with your idea. It may mean that you realized the idea was a bad one and you traded it out for a new one.
It’s hard work
To be sure, building a mobile home is hard work. You have to be ready and able to oversee a big project and hustle on coordinating so that things fall into place at the right time. You’ll learn new things as you go. And you’ll be stretched outside of your comfort zone as you communicate your ideas with blueprint designers, local government, and other entities.
You can’t be shy – and if you are, you’ll overcome that to get the job done. Building a mobile home park is not for the faint of heart or those who give up easily. You’ll need to be organized and work hard at your role in pulling it all together.
Location, location, location
In real estate, you know the old saying, “location, location, location.” If the property you’re looking to develop is not an appealing location to potential park residents, then drop that idea now. You don’t want to invest and later find that your mobile home park is located in a place that won’t draw the residents you want.
There are a few things you’ll want to consider as you shop for land to develop. For example, you should consider how close the property is to everyday conveniences such as grocery stores, the hospital, banking, etc.
These things will be appealing to potential residents. If you’re within driving distance of shopping and such, that’s always a perk.
Consider your utility strategy
On the note of the location, take into account utility access. Will services such as electricity and water reach your potential mobile home lots? If not, are you willing to pay for a private sewage system and well that would support the entire park? Break down the costs involved with connecting utilities as you crunch numbers.
Check with your local government before diving in
Before you start building a mobile home park you need to know what your local government is requiring of you. There will be regulations in the federal, state, and local level. Reach out to your local town government for information on inspections and other regulatory requirements. It’s not good business to buy a property and afterward find out there’s some law that prevents construction on that particular parcel.
Know your niche as you build your business plan
So what sort of park are you going to build? It’s smart to hash this out before you get started on any part of the mobile home park building process. Some mobile home parks are geared towards seniors and retirees. Others have a bent towards families with kids. Find out who you’re trying to get into your park and focus your designs on that demographic.
Additionally, begin thinking about your management style. Are you aiming for a luxury mobile home park? Then you may need a more rigid and formal management style. If you’re wanting a crew that takes initiative, then a management style that involves employee feedback in the decision-making process may be more your thing.
Enough to get you started?
There you have it – the things you should know before you start building a mobile home park. We talked about management style. Need help figuring out your style of park management? We’ve got your back.