Times are tough. Money is tight for many people these days and some of us are just looking for ways to bring in a little extra cash. Maybe you are only interested in a side hustle, or perhaps you’re looking to replace your income entirely. Either way, renting mobile homes for profit could be the way to go.
There’s a lot you will need to research in order to actually end up on top. But many have done it and it is definitely possible! Here are some things to think about to get you started with this new and interesting venture.
Consider where your mobile home will be located
If you already own your mobile home and the land it is sitting on, then it’s a pretty straightforward process to get set up. However, if you still need to buy the mobile home, or the land where you can drop one you already own, then there’s a bit more to it.
Do you already own a mobile home in a park? Mobile homes can be expensive to move even short distances (approximately $2,000 to $5,000). However, if you plan to keep your mobile home in the park, you will need to continue paying rent on the lot itself. This expense can make it difficult to profit on just one mobile home.
1. Find out if your mobile park allows renting mobile homes for profit
Additionally, many mobile home park owners do not allow their homeowners to rent out their homes. However, if they do, this might be a great option for you if you’re intending to live there one day. Having a renter could help you break even on expenses. If your lot expenses are low enough you might even have a little extra. This probably wouldn’t be a good option, though, if you are hoping to make a large amount from it.
2. Check the zoning laws in the area you want to put your mobile home
In many cases, putting a mobile home on land you have purchased will be just fine. However, it is always a good idea to check zoning and land use laws in your area. This can help prevent you from running into anything unexpected, and possibly wasting your investment. It would also be a good idea to consult a local real estate attorney who is knowledgeable about mobile homes.
Prepare your mobile home for tenants
As you go about preparing your mobile home to rent out, it’s good to take a very strategic approach. There is a lot of room for losing money if you are not careful. Here’s a handful of tips to help you get your home ready.
1. Know your target renter
Is your mobile home in a lower income area where frugality is key? Maybe you will be renting to people who would be willing to pay a little more each month in order to have something that feels a bit more customized. Should you make the cheapest improvements you can get away with? Or should you put out a little more money up front to be able to charge a little more in rent? Figuring out what kind of renter you are marketing to is paramount to understanding which approach you should take for the highest profit.
2. Make smart improvements
Maintenance can be a huge hassle. Even when targeting a lower rent, don’t go so cheap with your improvements that you will be constantly replacing things. This will cost you extra in the long run, and also use up precious time that could be spent on other things. Remember: time is money.
Do your research up front, and find inexpensive, quality products that will last a long time and withstand the wear and tear of many tenants. For example, remove carpets and replace them with a flooring that won’t retain a smell. Also, choose something that won’t scratch easily.
If you plan on collecting a security deposit, it is important for you to understand what damages you can deduct for, and what you cannot. Pick materials that will hold up to normal wear and tear since you will be covering those costs.
Sturdy hardware is another worthwhile expense to consider up front. Cheap plastic handles on your cabinet doors won’t look nice for long, and will often need to be replaced between tenants. Try finding inexpensive, real metal handles and pulls instead.
3. Keep things easy
Make design and decorating decisions that will make it simple to turn over tenants. For instance, picking the same white for all white surfaces will make touch-ups between tenants much less complicated. Multiple whites mean more paints to buy and more colors and cans to keep track of.
Also, consider welding in the expensive units that would be easy to pull out and steal, like your furnace and your outdoor A/C unit. It might seem a bit extreme. However, you will have a very hard time making a profit if you are having to replace stolen systems before you can rent your mobile home out to the next tenants.
Get started with your mobile home rental business today
Most of these tips are great regardless of whether you are planning to rent out one mobile home or several. Perhaps you’re interested in renting mobile homes for profit full time? Check out our tips for making it a success!