How do you handle on-site mgmt for small parks?

Question

I was curious how the MHP owners handled the on-site management of their properties.  I particularly interested in smaller parks (10-30 homes) where you wouldn't necessarily have a full-time employee on site.  I liked Jefferson Lilly's suggestion in podcast #111 to hire the person in the park who shows the greatest "pride of ownership" in their home for a modest fee each month to be your eyes and ears.  Do you like to hire someone who lives in the park?  Do you prefer an outside property manager who pops in occasionally?  I realize having boots on the ground everyday is best, but is it necessary and/or reasonable for smaller parks, particularly ones that don't have amenities that need to be maintained?  Thanks in advance.

Account Closed · Answer

@Edward Petrak   I like this size park when there are no or few Park Owned Homes and primarily Tenant Owned Homes.  Have a central phone that goes to you would be great especially if you are new and learning the specifics of the park ( as well as the business) .  Having someone within the park is always preferred.  That being said, if you cant get someone you like in the park , you might have to develop a work around.  You can have someone from outside the park check the park periodically for the things mentioned above. Then you can plan to do your visits say monthly, then maybe quarterly after that.

I think the way to be most successful with a smaller property remotely is to have little or no POH, try and find some talent if you can who will assist your operations, and a better /stronger market that has a decent clientele.

You might also check with the lawn company who is in there once a week to see if they can point out any issues they come across and maybe at an increased rate for incentive.  You can get creative .  If the manager doesnt live in the park, we are going through once a week or two weeks without someone from the outside, looking for a list of violations  ( you can modify to your needs) and getting pictures of the violations.  We then take those pictures and draft violation notices that are mailed. So you really have to emphasize the back end system and emphasize centralized management and be the support since no one else is.  Leave the front end work to be as simple as it can possibly until you start working with vendors ( manager) who have shown they are reliable and work from there.

Edward Petrak · Answer

Thanks for the responses.  To clarify, I am targeting parks that have no POHs, or ones where I could sell off the POHs as soon as possible, so that I don't have any home maintenance to take care of.  Lawn care/snow removal, I would just hire a professional lawn care service so that they have to worry about liability of their workers.  I'm thinking more about making sure people aren't breaking park rules, is the road in bad shape, checking utility meters, possibly rent collection (though I'd like to handle that either online or via a local bank), that kind of stuff.  I would handle this stuff myself if the park is close enough, so assume I'm having to manage it remotely.  I would definitely have a dedicated phone line that the residents could contact me if they have a problem.

@Sam Fackrell Glad to hear you found a solid manager.  Hope he continues to pay dividends for you!

Celeste Fackrell · Answer

Edward,

I live this every day.  I currently own a small park (8 pads, 4 POHs) about 3 1/2 hours away from my house.

When I bought the park, I knew I had to account for management, perhaps more than normal, as I was so far away.

I searched for awhile but I found a responsible young man (and family) to live in one of my homes and manage the park.  In addition, he also helped remodel some of the homes.  He currently manages, and does all the maintenance required on my 4 POHs.

Currently, he does not have to pay rent on the house, he does however, pay rent on the lot.  During the heavy renovation portion for the 4 POHs, he paid nothing; simply lived there and worked 10-15 hours a week for me.

I held out until I found the right candidate; it took me a couple of months.  I think I was lucky. I'm losing  his income, but I accounted for it, the park makes decent returns, and I don't worry about my park.  Both he and I are grateful for the each other; we each serve our purpose.

Was I lucky?  Most would say yes.  However, its working for me.

Roy Ernst · Answer

well i think it would depend on if you live near your park. do you own the lot or the units as well. if all you are doing is renting out lots then maybe no you dont need anyone to manage it onsite. if you own the units then who is doing maintance? lawn service meter reading ect. for this you or someone has to be able to respond in a timely fashion. on all of my properties i like to know every tenet and give then a number to call if they have any concerns .  if you dont want the calls then a property manager is a good way to go but cut into profits . if you go the route of a park manager this dose and can work fine if you find a good one.