In the News:
Why mobile home parks?
Simple Business Model
- Tenant owns the home and pays lot rent. Mobile home parks are a land lease business.
Supply cap
- Mobile Home Parks must be zoned from the county, but counties aren’t zoning any new MHPs
- MHP zoned properties in the USA are decreasing at 1% annually
- Zoning obstacle creates a high barrier to entry, making entry into a market financially viable only if one purchases a MHP already in existence.
Low turnover
- Nationally, MHP annual turnover in MHPs is around 10%
- Apartment complexes nationally face around 40% annual turnover
Tenant barrier to exit
- “Not so Mobile” Homes cost thousands to move, creating an expensive barrier to exit for renters
Strong demand for affordable housing
- Nearly 30% of the U.S. population has a household income of $25,000 per year or less. In addition, there are nearly 10,000 baby boomers retiring per day with social security checks averaging only $14,400 per year.
Low operating costs
- Costs typically run between 35% – 45% of potential gross revenue. Utilities (water, sewage, electricity & trash) can be passed through to tenants. Tenant responsible for their home maintenance and there are a few amenities and structures to maintain in conjunction with ongoing capital needs.