Mobile home parks are in great demand because manufactured homes, formerly considered a sign of failure, are becoming increasingly popular as a reasonable housing option. In its place comes a renaissance that has brought with it more positive connotations, such as a wider range of housing options at more reasonable prices. For readers who aren’t familiar with mobile home park management or ownership, this piece offers a fresh perspective.
Mobile Home Parks: Why They’re A Good Investment
#1. Low Level Of Rivalry
To be honest, when most people think about mobile homes, they picture dilapidated trailer parks and low quality of life. Some mobile home parks don’t suit this description, as there are some homes that offer peaceful and pleasant surroundings. Mobile home park management companies generate tens of thousands of dollars every month in revenue only from lot rent, which is something most people don’t consider.
#2. Profitable Business Opportunity
Mobile home park investments have the potential to be lucrative, but entering the market can be challenging. There is a chance you could stumble onto a mobile home park that is up for sale, but you will need to put in a lot of time and effort to find a suitable one. You can either purchase an already established mobile home park or acquire land and as many trailers as you can afford to set up on it.
And if you wish to buy a mobile home park as an investment, that too is a great idea.
#3. Home Ownership
When tenants take pride in maintaining their mobile homes, it benefits the mobile home park brokers and investors as well. Ownership of one’s dwelling, as opposed to the leasehold arrangement common among tenants of multifamily buildings, is a key factor in creating a sense of belonging among mobile home residents. Mobile home park investors also experience less tenant churn than their multifamily counterparts. This is because mobile homes are notoriously difficult and expensive to relocate, costing anywhere from $3,000 to $10,000 depending on size and location, and are generally prohibited from being transported on highways due to severe local regulations.
Guide to Investing in Mobile Home Parks
You can either hire a company that focuses on mobile home park management or acquires a mobile home park entirely. Purchasing underperforming parks and turning a profit requires a unique set of skills, assets, funds, relationships, and access to transactions. Numerous experts make use of them, but not everyone does.
Because of the complexity of MHP investments, clients have the option of working with a professional syndicator to lessen their load.
A mobile home park sponsor is an organization that invests money on behalf of others in mobile home parks. The company will source acquisitions, handle all necessary duties prior to and following closing, oversee routine maintenance and enhancements, and guarantee the investment’s long-term success. The only sacrifice the investor must make is financial.
The advantages of mobile home parks can be enjoyed by investors or brokers without the hassle of ownership when they engage with a seasoned home park management company like Colony Parks.