The MHP Expert returns; today, we’re discussing lot rents again. More specifically, we’re looking at the difference between cheap and expensive lot rents. What determines how much a home goes for on a monthly basis? More on that below!
What Lot Rents Mean For Park Owners
First, it’s important to know that lot rents vary based on a number of factors. There’s parks today that are getting $150 lot rents; then there are parks getting $1500 lot rents. If you’re in Atlanta, there’s expensive lot rents as high as $700-$800. But, on the other side of town, perhaps in a city on the outskirts of the metro area, there are $200 lot rents.
But what does that mean for park owners? Many say that in order to afford to bring new homes in, they need lot rents to be about $400, at a minimum. It used to be $300, but the number’s grown within the past few years. Now, for that same amount you may want to look at some used homes.
Comparing MHPs With Different Rent Rates
The difference between paying $150 and $1500 for lot rent is location, as well as that old saying, “you get what you pay for.” Take people with high rents, i.e., NYC, where the average apartment is $3,000-$4,000. MHP lot rents run between 35-50% of what an average 2 bedroom apt runs for in that area.
In California, there’s one outside of Santa Monica, right on the ocean. Its lot rent tips the scales at about $2,000. But that’s in a market where the average 2 bedroom apartment can run around $5,000 and $6,000 a month.
Help From The MHP Expert
If there’s one thing to say about the MHP Industry, it’s that its particulars vary on a case by case basis. While lot rent in most markets will be between $300-$500, there are plenty of examples both north and south of each extreme, even in the same state.
Need help keeping track of all this information? The MHP Expert is here to help! We offer a range of services aimed at assisting members of the MHP community, regardless of what stage of the game you’re at. Contact us today to learn more!
