Here’s a video I filmed for you about investing in mobile home parks:
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Here’s the Transcript:
Let’s talk about investing in mobile home parks.
You know, right now investing a mobile home parks is it’s kind of trendy it’s very popular and for good reason.
The mobile home park business can be a very profitable and very lucrative investment you’re dealing very often with a tenant base who know they need an affordable place to live and the same time you don’t have to own homes themselves in like an apartment complex where you on the entire unit may pay quite a bit of money in order to acquire the apartment complex per unit with mobile home parks very often unless you have park-owned homes you’re just owning the land and then the job essentially becomes to attract the right tenants to the park, to manage them well, to be competitive and to run your parking way that maximizes profitability while reducing any kind of stress that you might run into either from tenants or from legal issues or anything that can pop up.
And you know, aside from finding the right park, in the right market, with the right base of tenants (which is a key component of investing in mobile home parks) and really doing your due diligence on the park itself, and really analyzing the market to make sure that your source of tenants isn’t going to just disappear (for example – if one employer shuts down operations, or if a military base shuts down operations)…
The next thing that is crucially important to look at is, does the park have a system in place to find, hire, and train the right property manager, because of property manager is kind of the key person in the mobile home park business…
They can either create a very nice, and almost stress free, investment for you if they are trained properly and if they’re putting in the right tenants , and if they’re managing those tenants well, and if they’re proactively dealing with any issues that are coming up, out if they know how to market and advertise the park, if they know how to work with the contractors and they know how to deal with with any kind of maintenance issues or potential legal issues that are coming up – a manager like that, that’s that’s trained well, can just really make this a great business.
But then, there is a darker side to the business. If those processes are not in place, and the park puts in the wrong manager, or ends up hiring the right manager but doesn’t train them well, then the business can turn into somewhat of a nightmare.
And you know, as an investor you kind of want to minimize the amount of stress obviously that your investment is going to cause you and you want to get that the biggest ROI that you can…
So with the wrong property manager in there, they can put the wrong tenants into the park, they can pull all kinds of shenanigans, putting in people who are not necessarily paying the rent to you as the investors but maybe pocketing the money – embezzlement can be an issue. They can create all kinds of legal issues in how they deal with the tenants and how they deal with maintenance issues that need to be dealt with and how they deal with complaints that come up.
And we’ve been through this…
My family has three generations in the mobile home and RV park business. My grandparents, my parents, and my brother and I have all been in the business and we made a lot of mistakes along and those were costly.
You know you run into some issues we have to go to court for evictions all kinds of things and there are just a lot of mistakes you can make until you discover the right way to run a mobile home park and to deal with the tenants and all the issues that came up…
So what we ended up doing, was we created something called MobileHomeParkClassroom.com and that way we can find, hire, and manage property managers and then hand them a complete training system that has everything except for the particulars about park (like the rental rates, some specific documentation, and just the small things that are specific to park)…
And they can go through the property manager edition and each of the 12 modules where they can watch the role-play videos to learn how to deal with calls in a way that will attract the right kind of tenants to the park, how to tour the property, how to rent the spaces, fill out the leases and all the documentation, how to deal with and mitigate potential legal issues, how to deal with finances and taxes and insurance, how to deal with problematic tenants, how to deal with tenants who are just moving in and set the tone so that the tenant will be encouraged and motivated to pay the rent on time and to keep the place up and to follow the rules, how to deal with contractors, how to deal with maintenance requests, the list goes on and on because…
Property management in the mobile home park business is one of the MOST difficult forms of property management because you don’t own the homes and you’re often dealing with tenants who may come from a lower economic status, have credit issues, or passed rental issues…
And you know, there are a lot of things that come up so it is really challenging, compared to for example, managing apartments or managing commercial property, so that’s why we created MobileHomeParkClassroom.com – to to give us leverage and to make sure the parks run well. And it saves us about 80 to 120 hours per property manager that we hire and $4000 to $6000 in terms of our own time that is saved by just being able to hand the property managers a system they can follow and and put in place that that really makes the whole thing easy, enjoyable and profitable.
So you need look at which park you are selecting, how that park is run, and who’s running it.
If that sounds interesting to you, head over to MobileHomeParkClassroom.com to find out how you can find, hire, train and manage the right property manager to look after your mobile home park investment.
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