It’s no secret that multifamily properties and mixed-use investments are popular with real estate investors, but there’s another type of asset that deserves consideration. Did you know that roughly 17 million people currently live in mobile homes? And that means they need a place to “park” them. Between their low maintenance, high demand and affordability, the commercial real estate community is taking notice of investing in mobile home parks.
As the owner of a mobile home park, you’re only responsible for repairs and maintenance on the land. Since your tenants own their actual homes, the responsibility of updating and repairing the structure falls on the homeowner. For example, if they have a plumbing issue, they need to call a plumber and foot the bill.
While investors still need to pay for the upkeep of the park, the cost is significantly less than what they’d pay for the upkeep of the homes as well.
Because new mobile home parks aren’t being developed very often due to government zoning changes, there’s a high demand for well-managed parks these days. People are looking for more affordable housing options as home prices continue to climb, and incomes struggle to keep up. Baby boomers living on fixed-incomes are retiring with little savings, and mobile homes are a good solution for the affordable housing deficit.
One of the largest expenses for a landlord is the turnover rate. Painting, cleaning and finding new tenants takes time and money. And consider this, it’s much easier for a renter to move their furniture and some clothes than it is to move an entire house. Those logistics lead to tenants that stay longer and continue to pay.
Are you a real estate professional looking for representation in commercial transactions? Caiaccio Law Firm’s clientele includes commercial and residential developers, sponsors, investors and lenders. Our firm’s experience in commercial real estate transactions covers property types, including multifamily, single family, retail, hotel, and office properties. We have a specific concentration in representing multifamily operators, property management firms, and commercial developers.