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What are the Costs of Maintaining Your Mobile Home Park?

[fa icon="calendar"] 08.23.2016 / by Rory Williams

 

 One of the reasons mobile home parks make attractive investments is because the maintenance costs are relatively low. Unlike with apartments or rental homes, you are buying the land, rather than the structure itself. This means costs such as painting and structural repairs are not your responsibility. However, you will be responsible for maintaining the land and supplying the park with utilities.

Here are a few costs mobile home park owners should consider before investing:

Septic System Maintenance

Some mobile home parks rely septic tanks rather than public water systems because it is more profitable for the owner. In these cases, the park owner is responsible for maintaining and caring for any part of the septic system that is kept underground. Homeowners are generally responsible for repairing anything above ground or anything they damage themselves.

A septic system will need to be repaired or otherwise attended to if:

  • The tank is uncovered or completely full
  • It is leaking septic material or causing backup into the mobile homes
  • Septic material is seeping into the soil and/or groundwater
  • Other health hazards arise

Water Supply

Mobile home park owners must supply their tenants with clean water to drink, wash, and bathe with. There needs to be enough for each resident and pressure must be adequate for daily use.

Park owners are responsible for maintaining any piping that is underground. Tenants are responsible for any plumbing repairs that are above ground in their own homes. If you or your tenants suspect any serious problems with the water quality, you may need to contact Department of Environmental Conservation’s Compliance and Enforcement Division for testing and intervention.

Electric and Utilities

Although tenants are usually responsible for hooking up electricity and repairing any wiring inside their homes, mobile home park owners are responsible for the electrical service to the park.

Repairs or maintenance to your park’s electrical system are often necessary if:

  • Fuses or breakers are constantly tripping
  • Tenants are complaining they can feel shocks or electrical currents
  • Tenants are complaining that their lights are unusually dim
  • Electric bills are abnormally high

Road Repairs and Maintenance

Most states require that all roads be must be in usable condition. As a mobile home park owner, you are responsible for keeping the roads inside your park operable. This means ensuring that:

  • Vehicles can safely enter and exit the park at all times
  • Snow and ice are removed in a timely manner
  • There is not an excessive amount of potholes and depressions

Landscaping

Mobile home park owners are also responsible for maintaining the landscape on park grounds. For example, hiring landscapers or maintaining the landscape yourself will fall on you. You will also be responsible for removing any hazards from the park, such as dead or diseased trees that could potentially fall over.

Mobile Home Park Maintenance

Compared to the typical upkeep of apartments or single family homes, mobile home park maintenance is generally concerned with infrastructure, rather than the units themselves. This is because tenants are usually renting the land and not the home itself. Keep in mind, though, that parks containing park-owned homes will require more maintenance because tenants will be renting the actual units.

mobile-home-park-investment-guide

 

Topics: Investment Properties, Mobile Home Park

Rory Williams

Written by Rory Williams

Rory is the managing partner of Demetree Real Estate Services, a diversified real estate organization focused on investment, development and real estate services. He has experience running the operations of a private real estate portfolio with 5MM square feet and operations in 8 states.