Calculating cap ex and repairs for a mobile home park

[Pat Jackson]

I realize the answer to my question is "it really depends".  Is the park new, is it old, does the park own the mobile homes or just the lots, etc.  

In this situation the park owns the majority of the homes (90%), 50% are 2001 or newer, and it's city water, sewer, and electricity.  For single families I generally save 10% of rents for repairs and 5% for cap ex.

On one hand mobile homes are more "fragile" than a brick and stick house.  On the other they're pretty simple.  What are the percentages folks use for such parks?  Newish homes, not a lot of deferred maintenance?  Same question if all homes were sold off, and it was just a lot rent park?

Thanks!

[Frank Rolfe]

You're right -- there are a huge number of variables in this question. But here are some basic guidelines:

1) on the park-owned homes, I would figure on at least $100 per month in repairs.

2) on the park itself (the lots with no park-owned homes) the industry norm is $50 to $100 per year per lot on newer parks with PVC water & sewer and $100 to $200 per lot per year on older parks. In other words, the annual repair and maintenance cost on a 100 space park would be a range of $5,000 to $20,000 per year, based on the exact construction style, how well it's been maintained, the geography (cold areas have more problems historically) and the lifestyles of the residents.