Most owners visit their properties three to four times a year. They usually hire an onsite manager to oversee the daily operations. The manager is often a park resident who collects rent, hands out notices, performs light maintenance and acts as your eyes and ears.
Unlike investments in multifamily housing, retail centers or office complexes, the goal of a mobile home park owner is to simply own the land and rent out spaces (lots) to people who own their homes. This helps eliminate or at least reduce the headaches that most landlords face.
Other advantages of owning one or multiple mobile home parks are higher than average CAP rates, higher than average cash returns, potential for redevelopment and limited competition.
It is also possible to force the appreciation of the property by increasing lot rent, reducing operating inefficiency, filling up vacant lots, sub-metering utilities and offering homes on rent to own contracts.
The business is extremely fragmented and in many cases lot rents are well below market value. This creates tremendous opportunity for future owners. The misunderstanding and stigma associated with this asset class is somewhat responsible, but most mobile home parks simply provide clean, safe communities and affordable housing. The perceptions are quickly changing as more individual investors and professional groups learn about the industry.
Suncoast Business Consultants has purchased, managed and arranged the sale of several mobile home parks. Our network of investors and interested parties can assist you in finding a suitable land lease property.
Suncoast Business Consultants can also assist sellers who are considering listing their park for sale. Our insight into the mobile home park business can help you achieve the best possible sale price and maximum cash out. We can work with you to package your park and present it in the best light on the open market. We understand that many families have spent years growing and operating their parks. Our firm can help you when it comes time to sell.
