For those business-oriented individuals, owning a mobile home park can present a profitable opportunity. However, you should never dive into a business opportunity without a bit of research.
Managing a mobile home park can present a unique set of challenges unfamiliar to owners of other types of properties. Some of the nuances may even come as a surprise to you.
If you’re new to real estate investment, you have a lot to learn. That’s why we’ve put together this quick guide.
Here’s what property managers need to know about mobile home parks.
1. Owning the Land and Not the Home
In many cases, you may not own the homes in your mobile home park. You may simply own the land and rent out space for people to use. The renters will provide the buildings for themselves.
In addition to providing land, you may also provide amenities. This includes water, electricity, and even community propane tanks.
2. The Potential Stigma
If you’re interested in investing in a mobile home park, friends and family may question your sanity. Mobile home parks take on a bad reputation for many middle to upper-middle-class Americans.
The truth is mobile homes offer some great advantages over traditional homes.
Mobile home parks also offer benefits to the investor. As many Americans slip into positions we might often consider poverty, many people are choosing to not buy real estate or build homes.
This means more people are interested in living in manufactured homes over inner-city apartments.
3. Financing Can Be Difficult
Many financial institutions may view mobile home parks as riskier than other types of investments. You may struggle to find necessary financing for such a business endeavor.
You may need to look into alternative lending options to finance your mobile home park.
4. Maintenance and Safety
Maintenance and safety are of utmost importance in mobile home parks. Some of your tenants may be families with children.
You need to think about trees, which may fall on houses or cars. You’ll need to think about exterminating pests such as ticks.
5. Managing a Property Takes Hard Work
Whether you invest in a mobile home park or hotel property, you can expect to put in your hours. You need to collect rent, enforce rules and regulations, keep up with maintenance, and much more.
Of course, you can always outsource management to a third party to alleviate some of the stress. Remember anyone you pay will take away from your profits at the end of the day.
A Guide for Property Managers and Owners
Owning and managing any property can be a great business opportunity if you’re willing to put in the work. Mobile home parks come with their own unique challenges but can be profitable nonetheless.
This quick guide should point property managers in the right direction when it comes to managing a mobile home park.
However, there is still so much for you to learn. Click here to find more resources about real estate investing.