MHC owners in need of advise

[Kim Boraas]

My husband and I are first time owners (since 1999) of a mobilehome community. It needed a lot of improvements, we have made some head way but still have a long way to go. It has 52 lots, we own 27 of the mobilehomes and rent them out, the rest are lot rents. We have a hard time keeping renters current, a lot of turnover and a lot of damage when they move out. Needless to say we feel like we are going in circles. We have to have fairly relaxed rental criteria, due to the area and condition of the park. The park is outside of city limits and is on a well and septic, which is very involved upkeep and expense. We've been told they charge 2 to 3 times more for water outside city limits and hook up is expensive if not impossible to get. We live off-site, I manage the paperwork and my husband is there everyday doing improvements and maintenance to park, he also has mobilehomes that he is refurbishing for rentals. We also pay 2 men to help him. With all of this, we seem to be putting everything back into the park and them some. At the time of purchase we had a lot of money in investments, over the past few years we have exhausted that. We are barely staying afloat. I just came across this site and am desperate. Please can you help with advise or point me in the right direction? My husband keeps saying it takes money to make money, I don't think he understands how serious this is. I know if we can turn things around, by reduce our outgoing expenses and increase rental collections that eventually we could make a decent living. But right now I'm scared to death and don't know what to do. HELP!!!!

[rmurray]

First...upgrade your own image of the place...We have been in the "MANUFACTURED HOME" business since 1976...

For rentals and good steady income..talk to your local housing authority..Section 8 housing probably more than you are getting in rent now and they lease the home for a full year...If the tenent breaks the rules...the housing authority throws them out...If the tenent moves...they still pay for the whole year...

[Jason Matlack]

Hi!
I am investigating into in the future buying a community. My good friend manages a number of parks for another man. They don't own any of the homes, they just rent the land. They have companies that make arrangements to put in new homes for sale in exchange for a set price in order to give them time to sell them. They also have someone who removes the outdated or beat up ones. If you did that and phased out of renting the actual homes it would allow you to spend money on improvements that are more important and would almost eliminate the need for payed help. I'm not sure what the workers comp. and paroll for you but in my business it is high!
Like I said I am at the getting educated state right now, however I thought I would just put what I learned out there. I hope it helps.

[Lance Nerland]

Hi there. I am the owner of a 150 site mobile home park, and here is my Advice.
GET RID OF THE RENTERS! Renters are the largest drains on your pocketbook and time. I used to have 30, and at the end of the day after putting my hours working, paying employees and supplies, I discovered that I was losing money on each unit. Land lease is clearly the way to go. I have slimmed down my operation so much that I am the only employee of my MHC. I subcontract for everything else. I discovered that it is 50% cheaper to subcontract someone for lawn care at an exact price per month, then to pay an employee.

[Chrissy]

Whew! They are right! Eliminate the rentals. Do this by selling the homes. If you sell them to someone who doesn't have full cash, help them get financed. There are a lot of small banks and finance companies who will finance homes since you are not a retailer set up with a large finance company. Operations are much cleaner, much less expensive, and much easier to maintain if residents own their homes.

[Craig]

Another vote for getting rid of the rental units.

We manage a 124-lot community in NC. When I got into this 5 years ago, two attorneys who own several parks together gave me this advice: Don't EVER get into the home rental business.

I don't mean to disparage manufactured home renters, but consider what kind of person you are going to be renting to: Most likely, it's someone who couldn't qualify for buying a home. Considering how many lenders there are that are willing to finance just about anyone, you are going to be renting to "difficult" people (financially speaking) in most cases.

We do have several rented homes in our community, but they are owned by folks who are somehow involved in the community, so they have an interest in keeping good tenants in.

Just my 2 cents.

[Lance Nerland]

Or sell the homes contract for deed like I did. You will have to be sure to check out their credit app, but out of all my former rented units, I had only 1 foreclosure.

[Ronda Hughes]

Confucious says "GET RID OF THOSE RENTALS" not only are they costly but usually lack in appearance. Upgrade your community, start a dealer program to get dealers to place new homes into your community.

[mark sciortino]

i am the ceo of superior recovery and screening systems a 23 year old debt collection agency that concentrates in the area of apartment and manufactured housing.please visit our web site at www.apartmentcollections.com.i would be more than happy to discuss your collection problems and help you in the area of screening so that your property does not continue to have the same problems in the future . we work with the large owners such as mhc, chateau,sun as well as the owners of single communities. you can reach me at the above e-mail or contact me via phone at 800-589-2680.