There are different types of mobile home park ownership and varying nuances as to how they operate in the real world.
We’ll be breaking down each type for you and providing an explanation on each one. This will enable you to pursue the type of mobile home park you want to move to or operate. It’s helpful to know what you’re getting into prior to signing any agreements.
Understanding the types of mobile home park ownership
Mobile home park investing can be a rewarding business plan. Because of their growing popularity and increased quality, many families and retirees are flocking to rent or buy a mobile home.
So that’s to say that becoming a mobile home park landlord can be a great way to bring income. It’s a booming business and provides a great return on your investment.
Commercially owned mobile home park
A commercially owned mobile home park is owned by a private company or sole-proprietor.
Although residents may own their homes, the mobile home park landlord owns the property the mobile homes sit on. That being said, residents are relying on the landlord to be ethical and sympathetic towards their position as renters. This means they’re counting on the landlord to not up and sell the place at whim, causing them the loss of their home or to neglect the care and maintenance of the park.
Another aspect of a commercially owned mobile home park is that the landlord has sole control over the rent and park rules.
Know what you’re getting yourself into
Whether you’re a landlord or tenant looking to choose this type of park, be sure that the lease you employ lays out the parameters of your rental. For example, you’ll need to list out all the rules, rental fees, and expectations.
In this scenario, the landlord is responsible for the mobile home park’s care. Roads, water, electric, waste, landscaping, and more fall into his or her jurisdiction.
Co-op or resident-owned mobile home parks
The second type of mobile home park ownership is the resident-owned park. These parks are often purchased by residents who buy a share in the park. Because of their invested interest in the park, these tenants have a say in how the mobile home park is maintained and organized.
Together, the residents form an organization for the betterment of the park. A voting system means that every resident has a voice. These residents do not have to worry about the place being sold from under them.
In a resident-owned mobile home park, members will select a board of directors. This board will create committees for different tasks while dealing with the everyday actions of the organization.
The board will be responsible for overseeing that the accounting and maintenance of the mobile home park are in order. A community-owned mobile home park is not a license for chaos, it is acknowledged that some semblance of order is requisite.
Reasons to invest in a mobile home park
You’re probably reading this because you’re intrigued by the idea of investing in a commercially owned mobile home park. That’s thrilling! There are several reasons why this is a good move.
An affordable investment
For a first time investor, mobile home parks are a great idea due to their affordability. It’s affordable in the first place, so why not assume a whole park is an affordable investment?
The cost of maintenance
Because of their size and simplicity, mobile homes are a great low-cost real estate investment when it comes to dealing with maintenance.
Great return on investment
Additionally, the low cost of investing in the property in conjunction with low maintenance costs make mobile homes a great idea. You’ll get an excellent return on your investment in no time.
An easily expandable investment
When it comes to investing in mobile home park ownership, it’s an easier investment to build in comparison to stick built homes.
It is often the case that in their low cost of purchase, you can easily buy a second one with the income you gain from the first mobile home. Little by little, a whole park full of mobile homes will be paid for and more.
A great investment with responsibilities
Undoubtedly, mobile home park ownership is a great investment of time and resources. But that’s not to say that it isn’t going to require work. It’ll require the right choice of management personnel, systems, and cultivation of skill to work with your tenants.
If you’re interested in investing, here are six ways to start making a profit on your mobile home park investment.