As a busy manufactured home park owner, you don’t want to run in to trouble with your tenants. Your goal is to make your lot rates fair and the requirements in the park reasonable. You’ve seen more people turning to parks like yours over the last few years, and you could ask a premium for your lots.
Before you do, you should know what lot rent is and what it is supposed to pay for. The lot rent is just the rental or lease of the land that the home is on. It does not include the price of the home, so if you own that as well, that should be included as a separate rental or added to the lot rent.
Lot rent may cover a few different expenses that are accrued by those living in the park. Some common expenses that are rolled in to lot rents include:
- Trash service
- Amenities expenses, such as cable TV or internet access
- Grounds and general maintenance
- Upgrades to the infrastructure of the facility
Lot rents will vary depending on what you want your tenants to cover with that fee. If you want them to have utilities in their own name or to pay for many of their own amenities, your lot rent may be less than in other parks. In California, an average lot rent is around $866, but that varies by lot, the amenities in the mobile park and other factors.
Some tenants may want to negotiate lower rates by deciding they don’t want certain amenities or services, but as the owner, it’s up to you to decide if you’re willing to make those accommodations. It may be wise to consult with an experienced attorney.