If done wisely, investing in mobile home parks can be extremely profitable as a long term investment strategy. Before taking the plunge and investing in a mobile home park, it’s important to understand the advantages they offer investors, as well as know what’s in store for the market in 2020.
You’ll Want a Good Management Team In Place
Most investors won’t be planning on operating the day to day running of the mobile home park themselves. Therefore it’s imperative to have a qualified and reliable management team on board to handle it for you.
Sierra Corporate Management is one such company that specializes in mobile home park management, among others.
The success of your mobile home park as a money-spinner really hinges on having your park well managed, so this step of the process is crucial for the profitable longevity of your investment.
Tenant Turnover Is Extremely Low
Unlike the regular rental market, where people seem to come and go, move in and move out on a regular basis, it’s not the case with mobile home parks.
The main reason being is that mobile homes are in high demand. They offer a very affordable housing alternative, so once people manage to relocate inside a good mobile home park, they really don’t want to leave.
What this means from an investor viewpoint is that tenancy rates will remain high. This results in a top dollar return on your investment.
Park Owners Own All the Lots
When you buy a mobile home park, you own all the lots and can charge rent on every single occupied lot. Even the homeowners have to pay rent on the lots.
Another avenue for even more rent is on those mobile homes that tenants don’t own, but are owned by the park.
There are so many revenue streams in mobile home parks that they are a very low risk investment. With likely hundreds of lots inside the park, even when a few tenants vacate and rent is not coming in from those few lots, you’re still drawing a healthy income from all the other homes and lots.
The beauty of spreading the risk like this is that you barely notice a drop in your income when a few lots are vacant. Because you’re covered by potentially hundreds of other residents who are still paying rent every month.
Mobile Home Parks Offer Great Amenities
This is also great news for investors as the more the mobile home park has to offer its tenants, the happier they’ll be and the more likely they’ll want to stay. This helps ensure full occupancy most of the time.
Management takes care of all the amenities and communal facilities, whether they be an on-site laundry, toilet and shower facilities, swimming pool, game’s room, kid’s playground, parks and gardens, barbecue areas, and more.
So if you plan to invest in a mobile home park, check out what amenities the park has first, as these are really important to the overall success of the park and your investment.
Low Investor Competition
Your average property investor has still stuck in the time-worn mindset of putting their money into regular apartments and houses. Most haven’t even given mobile home parks a second glance.
For you, this is great news, as it’s really a buyer’s market with such low competition. This also means you have a much better chance of buying into a mobile home park at a bargain price.
Mobile Home Parks In 2020
Did you know that manufactured homes and mobile home are the only housing industry sector that hasn’t experienced a decline year after year?
In fact, the opposite is true. More and more people are choosing to live smaller in modern times, and therefore mobile homes and parks offer a very attractive alternative to paying off an expensive house or luxury apartment.
2019 has seen the trend continue to arise regarding the number of people moving into mobile home parks, and2020 is shaping up to be more of the same.
If you’re looking for sound property investment, then buying into a mobile home park now is what you should seriously be considering.