Purchasing a mobile home park in the Southern California real estate market can turn into a great investment. But as with all businesses, it needs to be properly run to draw tenants and be a success.
That’s especially true in California, where mobile home parks are big business. In fact, the state, as of a January 2020 count, had 5,251 active mobile home and recreational vehicle parks with more than 450,000 lots, according to the Mobile Home Park Home Owners Allegiance.
So, how do you set your mobile home park apart from others when the competition is as big as it is in California? Here are some guidelines you could consider:
Don’t emphasize being the lowest-priced park
Lower rent prices might draw in some tenants, but others will look for value for the money they pay. Tenants often are willing to pay for upgrades, such as security cameras, landscaping and updated units, that less expensive communities don’t offer.
Remember curb appeal matters
Prospective tenants will be interested in your mobile home community, and consider it a first-rate business, if the grounds and community property are well-maintained. Keep the grounds free of trash and other clutter, keep the common areas mowed and the bushes trimmed. Extras, such as a community garden, give the residents a stake of ownership in the community, and they’ll want to do their part to keep it looking its best.
For the units owned and rented by the park, keep them updated with fresh paint, newer appliances and good flooring. Replace stained or worn carpeting or flooring with an easy-to-clean and durable flooring selection. Paint the exterior of the homes and perform other maintenance on a regular basis, too. High-quality touches will keep your homes rented.
Screen the tenants
The basics include a credit check, proof of employment and reference checks.
Determine the proper terms
Many tenants prefer shorter-term leases, so you might consider setting aside some units for less than a one-year lease. Allow yourself to raise rents after a lease expires, as well, to allow your park to keep up with maintenance costs.
A good mobile home park will attract top-notch tenants who could be happy tenants for years to come. Running a first-rate park should assure few problems for your business.