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Updated almost 8 years ago on . Most recent reply
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How much to increase lot rents on a newly aquired park
Hello all!
I'm closing on a 8 pad park in South Carolina next month. Current lot rents are $150 and haven't been raised in years, like over 15 years. Market lot rent for the area is at minimum $225. How much do you think I should raise them?
My initial thought is to raise it by $25 to $175, but I'm wondering if I could even go to 190 or 200. All tenants own their trailers with no payments and all work for a living, so there is no situation of living off welfare or social security.
Most Popular Reply
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I would phase in step increases, while being clear to everyone where you plan to end up, which should be at the area average. By slowly raising the rent, you allow them to adjust and stand a better chance of 'selling' them on your plan and keeping your park full! Come up with something tangible to do in the park to show the residents that you plan to invest money into their neighborhood.
Good luck!