Owning a mobile home park business can be very lucrative, especially compared to other forms of housing. You just have to research and go about it the right way. Jumping into the industry with your own assumptions will only cost you more money and stress. So this article will go over the benefits, hardships, and decisions that come with starting a mobile home park business. Then we’ll go over some tips that’ll increase your chances of success.
If you’re here, you already know that mobile home parks can be a low-investment, high-profit business. The money might be one of the biggest pros, especially since you shouldn’t have an issue finding tenants. Mobile homes are popular because they’re affordable for low-income households. So with the right marketing strategy, you should be able to attract the right people.
There is a stigma around mobile home parks that can make them less attractive to potential tenants. So you’ll have to put in more work on the landscaping and infrastructure to appeal to those on the fence.
Another problem you may encounter with mobile home parks is zoning. It can be tough to get zoning approval for new mobile home parks. So your best bet might be to find a seller and renovate an existing location.
Many owners choose to rent lots of land to existing mobile homeowners, which can help you save significantly on maintenance costs. However, you may not bring in as much revenue this way. If you’re only going to rent land, ensure that you add extra amenities to the site to increase the property value.
Conversely, if you decide to rent out mobile homes, you may have higher maintenance costs and more revenue. So if you want to follow this path, you will need equipment, like a forklift trailer hitch, to transport the homes to your park.
A critical part of keeping a good reputation for your trailer park will be landscaping and maintenance. If you can keep the land clean, you’re more likely to attract the tenants you want. However, if you need to save money, you can let the residents manage the lawn in their lots. Of course, this will need to be worked into the rental agreement, but it is pretty standard practice, you replace a bathtub if you break it.
You can’t do everything yourself, particularly if you’re managing multiple mobile home parks. You’re going to need several employees for each park:
- Assistant managers
- Maintenance crew with dining room wall decor
Once you find the right people to help you manage your business, you’ll need to set aside time for training. They may make mistakes, but you should give them a chance to correct them instead of firing at the drop of a hat. Doing so can ruin your reputation as an employer, making it harder for you to find employees down the line.
Mobile homes are famous for their affordability. So you will need to ensure that your rent isn’t too expensive. However, you can’t lower your prices too much, or you could lose money. Not to mention, you’re competing with others in the area. So you should research their prices, cleanliness, and reviews. Then, do your best to stand out while offering fair rates.
Before buying a mobile home park, you should check the rent prices for apartments and houses in the area. If people can afford to rent an apartment, they’re not going to pay the same price for a mobile home. Additionally, you should talk to the previous owners and police about the history of crime and past reports of structural issues in the park.
When you first get started, everything can be a bit overwhelming. Plus, there are things you’ll learn along the way that you wish someone would have told you in the beginning. So here is some advice to ease the transition:
- Get to know the tenants. They may be wary when the trailer park goes under new management. So write a letter to introduce yourself and talk to people you see outside. Once they see you as a friendly face, they will be more likely to trust you.
- Don’t approve any and every applicant. You may be tempted to approve everyone for the sake of profits, but it could end up costing you more later. Instead, run background checks on your applicants and ensure that you’re creating a safe environment for those you approve.
Running a mobile home park business can be fun and lucrative, but it can be a lot if you don’t know what you’re doing. So make sure you pay attention when researching, and ask other park owners for advice. You’d be surprised by how much other people are willing to help.