Operating Expenses

[Todd Johnson]

Chrissy,

I am a real estate appraiser located in Jacksonville Fl. I am working on several appraisals in Hillsborough County, FL (your neck of the woods) on M.H. parks where all of the mobile homes are tenant owned. I am trying to get expense information on these types of facilities. Since I have been hired by FDOT, who is acquiring these properties, the property owners have not been as helpfull as you would think. Any information you could help me with would ge greatly appreciated.

Thankyou
Todd Johnson

PS
I enjoyed reading several of your articles, which were very helpful

[Chrissy]

Thanks for reading my articles. In terms of operating expenses, the national average for several years has hovered around 37% to 39%. However, in individual circumstances, the actual variance may be as low as 25% or as high as 50%. Certainly, in a community where all homes are owned by the residents, the potential is there for economical operations. Much depends on the age of the communities. Older communities are probably beginning to experience some infrastructure deterioration that may well inflate expenses necessary to continue operations. For example, if there are septic tanks on the property, as the sdystem ages, pumping may be required more often. The overall appearance of the property may also give you some clue as to the amount of money spent on expenses. Is it clean and fresh, or does it look tired? Obviously, it takes more money to continue looking good. I know this is general information, but I hope it helps. If I can help you further, please feel free to contact me directly by calling my office at 813-982-9617.