Mobile Home Park Drive Through

[William Stanhope]

I have been reading and studying information about mobile home parks.  One of the things that you read is several places is that there is always room for low cost housing (more now than ever).   My wife and I used to live in a mobile home park for about 13 years.  We understand and appreciate the value that type of housing was to us at that time in our lives.  We decided to do a drive through a park near us the other day out of curiosity.    I was surprised to see that probably 25% of the lots were vacant and that another 10-15% had "home for sale"  signs (and it was clear that no one lived there, we found out later these were for sale by the park).

We checked Craigslist and found that lot space rent was $585 (trash/water/sewer) in that park.  Another park (closer to the city and more full)  but in the same area has lots listed at $625/month (trash/water/sewer/basic cable).  In the area you can rent 2 bd apartments for about $800 - $900/month.

What could be going on at the first park?  Have they priced themselves out of the low cost housing market?

Has anyone ran into a situation where the park was charging too much and had to lower rates to fill the park?

When the real estate market crashed a few years back, did any park owners have to lower their lot rates (i.e if house cost are dropping doesn't the bottom have to drop as well)?

[Bill Neves]

@William Stanhope

It could be a number of things, including monthly space rent priced too high.

Some park managers/owners don't get along with the tenants and the tenants move out. They attempt to sell the home but if they can't they may move it out. Most tenants don't, due to cost.

Could be utilities issues. One park in my area, is $80/mo for water alone. While another park is only $30/mo. Another area I've worked, had rust in the water and the city wouldn't force them to fix it so several tenants moved out.

Maybe the age of the homes is such that the mgr/owner wants to update the park and has asked them to upgrade or move the homes out. If that is the case, they may allow a move in incentive. Some parks in my area will pay $5k toward the move cost plus 3-6 months rent after moving. This is usually for homeowners moving in. May not allow it for contractors/investors.

It might be a good idea to meet and interview the park mgr/owner and just innocently ask why so many open spaces? And what they think is going on? If you're conversational and seem curious, they may tell you.

Good luck and happy hunting!