In Mobile Home Parks, there are a few different kinds of MHP rents that take precedence. Keep in mind, this doesn’t include rents for any single family homes, apartments, or self storage on the site. You’ll pretty much only be dealing with the lot itself, though sometimes it may include a home on the lot.
First there’s lot rent, which references the actual base rent of the piece of land to put a home on it. Then there’s a park owned home, or POH, rent. This is generally the rent above the lot rent when renting the actual modular home that the tenant is in.
Rent To Own, or RTO contracts
It’s important to note that many landlords, especially your traditional landlord types, won’t differentiate between lot rent and POH rent. They’ll look at them as members of the same general rent category. This is in contrast to how the world of MHP brokers works. Here it’s imperative that a distinction is drawn between the two for pricing purposes.
Within the POH aspect, there’s also another popular delineator: Rent To Own, or RTO. These contracts are different from just renting the home, it’s renting with the intent to become an owner in the near future. While it is uncommon to hear an infrastructure referred to as a rent to own park, whether or not the option is available is a common inquiry. Depending on where you live it may have a different title, but the concept will be the same. Now let’s look at some extra, general park fees you may come across.
Ancillary Park Fees
Pet fees are also pretty common on a park’s premises. These will allow your tenants to bring their fur babies along while keeping you and your park insured and out of liability’s way. There are also things like shed fees, in case someone wants to secure storage.
It’s important to remember that many of these ancillary fees aren’t usually as common as some of the more set in stone rent fees named above. It’s still good to stay abreast of them in the event that you find yourself weighing park options!
The MHP Expert, At Your Service
Before we finish, we can’t forget about utilities. You may be asking why they’d come up in a discussion about MHP rents. Though they may not classify exactly as rents, they’re still relevant expenses. And sometimes, utilities may even also be included in lot rent. This can include bill backs, or may even be billed to the municipality. A good rule of thumb is when you see a rent roll with a big number on it, you’ll want to ask if they’re including utilities and how they’re being billed.
Looking for support in navigating this crazy world of MHP? The Mobile Home Park Expert is here to keep you encouraged and informed! Getting in touch with us is easy! Simply head over to our services page to get the conversation started. We look forward to hearing from you!