Are You Considering Investing in Mobile Home Parks? Read This

You must have heard from many people, multiple times, that property is the best investment. It is true that the value of property assets escalates like no other. As an investor, there are multiple options available to you like single-family homes, multifamily properties, and even mixed-use investments. One of the most talked-about investment options in real estate is mobile home parks. When you invest in these, you are actually buying land to rent it out to mobile homeowners for a monthly or yearly payment. Basically, you own the land and they own the residential vehicle they live out of. There are many pros and cons of this investment option, just like any other. Before putting in your money, find out what these are:

Pros of mobile home park investment:

Lower cost: If you purchase a property like home of office space, the price will include the cost of construction of the structure. While investing in a home park you ae essentially paying for the land, which will cost you less than a flat or an office space occupying the same area. Thus, the rent you earn will give you a better return on your investment than a built-up property.

Repairs and maintenance: As landlord of the park space, you are responsible only for repairs and maintenance on the actual land. This includes cutting the grass, shovelling snow, garbage removal or maintenance and repairs on a communal structure like pool or clubhouse. The owner of the mobile home will pay for all the repairs and maintenance of the home. The services you have to pay for are less than home repair services thus making your end of the expenses lighter.

Low turnover: When a tenant moves into your mobile park space, they are essentially moving an entire home into your space, compared to moving onto a flat where they just have furniture and clothes. Moving out an entire home is far more difficult, making tenant turnover less in case of mobile home parks. This makes it a hassle-free option.

Cons of Mobile Home Park Investment                                                          

Repair battle: If any homeowner does not keep the space well maintained, the entire park could look rundown and discourage new tenants. This can be bad for your business. While there are agreements in place about maintenance, it can be a real struggle to make tenants comply with them.

Area-specific demand: Certain parts of the country may have better weather conditions and landscape suited to mobile living. It is important that you ensure whether your plot is purchased in such an area, otherwise the demand is going to be low given mobile living is a niche market to begin with.

These are both sides of the coin that you need to weigh before putting your money on mobile parks. Read carefully to understand what works for you, and decide accordingly.