Hiring a MHP Manager

[Garrett White]

Alright guys and gals, I'm new to the MHP business so bear with me. Providing your business plan involves hiring a tenant to be your manager, how do you typically compensate them? For instance, in Multifamily investing, it's typically 5-10% Gross Income, depending on the size, and it's somewhat a turnkey deal. However, in addition to giving the manager free/reduced rent, do you pay them a percentage of what they collect or what? Also, what is the manager's roles besides being your eyes and ears and collecting rent? For example, do they call someone for necessary repairs? Thanks

[Jeffrey H.]

For small MHP's under 50 pads you should give free lot rent, and a small salary depending on the number of lots.  If they are occupying a POH then you can give them that as well.

Beyond eyes and ears, they need to read submeters and report those back, assist coordinating repairs for infrastructure, tree trimming, etc.

For special items like selling a home they can field phone calls from buyers, get the paperwork going, and put out bandit signs, etc.  For things like this there is a $500 or $1000 flat fee after the unit has been filled.  It's difficult to find a manager that does this well, and people are looking more and more at virtual assistants to do this, and just have the manager do showings and the bandit sign part.

Less is more in most cases.