You’ve got the entrepreneur spirit and you’re asking yourself, “Should I buy a manufactured home as a rental property?”
It’s an excellent question and our intent is to empower you with the knowledge to figure out if this business concept is right for you. We’ll offer our input on frequently asked questions about mobile home rental properties.
What are my responsibilities as a mobile home landlord?
There are several responsibilities you must bear with as a mobile home landlord. It’s wise to know what you’re committing to prior to taking on the responsibility.
It’s your job to provide a safe home
It’s up to the mobile home landlord to provide tenants with a safe home that does not pose a risk to the health and well-being of the tenant and their family. Appliances, utilities, ventilation, and insulation should be functioning safely and properly.
Make sure the property is insured
If the home is mortgaged or on a loan, you may be required to have insurance on the property. Unfortunately, you do take risks when you allow the renter to use your property. It’s good to be insured in case damage is incurred. Accidents do happen. And occasionally, you may find you have a spiteful renter who will intentionally incur damage before evacuating the home.
Maintenance is up to you
An important point to consider, you do not want to be a stingy penny pincher when it comes to maintenance. Neglecting the maintenance of your mobile home may cause you terrible grief and financial strain in the future. Neglecting a smaller repair may lead to greater damage.
You want to be sure that the utilities are running smoothly. It’s important that you capture problems before they snowball into greater damages.
If you do not wish to deal with mobile home maintenance, you may put that in the agreement. However, don’t expect to charge as much in rent as you would have if you were to take care of maintenance.
What does a lease agreement entail?
When it comes time for the new tenant to sign paperwork, you want to have a proper lease prepared and ready for signing. The lease agreement should be legally binding and specifically mention and cover the rental details. Include rental fees, utility fees, yours and the tenant’s role in the home’s maintenance, the length of the rental term, and other regulations.
You’ll want to provide the tenant with a signed copy for their records too. Basically, it’s important to get the terms of rental in writing and signed by both sides of the contract. In the case there is a dispute, this paperwork will be handy in court. The internet has sample lease agreements you may employ to create your own.
And thus, we are brought to our next frequently asked question for those who ask themselves, “should I buy a manufactured home as a rental property?”
What is lot rent? And how much should I charge?
Lot rent is what the tenant pays the landlord for the use of land and mobile home, according to the agreed terms and pricing.
In the lease, guidelines should be set to explain what is entailed in the lot rent. There should be an explanation of eviction procedures, home and lot rules, and what is included with rental fee.
The average cost of mobile home rent is $300 a month.
As you consider pricing for your mobile home rental property, keep in mind that fees may vary from state to state. Research what other mobile home lots with homes go for in your locale.
How would I deal with evictions?
As with mobile home rental costs varying from state to state, so do eviction procedures.
Generally, you are required to give your tenant notice of their eviction and explain why they are being evicted. Even if the eviction is due to the tenant’s neglect of payments, you are required to give them notice and an explanation. And you may only enforce the eviction after a subsequent payment is neglected.
You’ll definitely want to find out what the local and state regulations are for mobile home evictions. Taking action the incorrect way can cause big blowback if you’re breaking the law, regardless of how difficult your tenant may be.
Should I buy a manufactured home?
Although we can provide advice and input to help you decide, the answer to the question, “Should I buy a manufactured home?” is best answered by you. So weigh the facts. Carefully look at your budget and the needs in your location. Lastly, talk to respected entrepreneurs in your area who’ve successfully built their own manufactured home rental business.