Question About Rents

[Karsen Wynn]

Hey guys I'm a newbie land I have a (probably dumb) question about mobile home rents and lot rents. I was looking at a park earlier today (just practicing making offers!) and I noticed they had some junky trailers and everything was kind of a mess around the park, they were charging $155 for their lot rents. I feel like there is lots of potential here but how would an owner get his tenets to agree to a rent bump to maybe 200-300 dollars per lot and how could that owner get increase the value of the park to justify that rent increase? Also how would the park owner get his tenets who live in the park owned trailers to agree to a bump in their rent? Thanks, Karsen

[Ken Rishel]

The only way tenants can disagree with a rent increase in non regulated states is to move. 

As Zack mentioned, one would need to know market value. George Allen of GFA Management is a good source of this information as is JLT, a division of Data Comp.

Often, a community owner buying a community will upgrade a community in order to justify raising rents. One of the ways to do this is to replace smaller older homes with new larger homes while upgrading the grounds as well.