There are several i’s to dot, and t’s to cross when it comes to your selling your Mom & Pop Park. And if you do have Mom and Pop Park sales on the horizon, you’ll want to ensure all of these measure are ready and up to snuff. For example, your accounting.
Many mom and pop parks elect to do their own accounting, which can get a bit tricky. The last thing you want is an inconsistency in your records going into a sale. Now is the time to hire an accountant to ensure all is correct and in digestible order for the buyers. An accountant can cover all bases that other brokers and consultants will likely be hesitant to assume the liability of.
Having The Proper GL Codes
Next, you’ll want to make sure you have all of tour different GL codes on your PNL properly labeled. You don’t want to only see repairs and maintenance, taxes, and utilities. Instead, dig in deep with the details. You want repairs, home repairs, POH repairs, and Cap H repairs broken out.
And on utilities, you don’t just want the broad category, but instead, list out water, sewer, trash, cable, internet, and so on. This paints a full picture for all parties, and will likely earn you trust from a buyer. Do the same for taxes and insurance as well.
Handling A Mom And Pop
Management is another big deal when it comes to the park. Many mom and pops are likely self run, and they may not directly be paying themselves as managers. But that doesn’t mean it’s not a task that needs its own line item. Be sure to include it when evaluating your park’s worth.
Have more questions about Mom and Pop Park sales, or MHPs in general? Contact The MHP Expert today!