Did you know that there are approximately 73,000 mobile home parks spread across the United States? Also known as manufactured housing communities, their number gradually decreases due to redevelopment plans. Unfortunately, the construction of new manufactured housing communities is still far from keeping up.
According to statistics, in the past two decades, only ten new manufactured communities have been developed. On the other hand, ten communities are torn down or sold each year for redevelopment purposes. Considering this information, it won’t be wrong to say that it is the right time to sell your mobile home park. Nonetheless, let’s learn about a few more reasons to help you make the final decision.
Reason 1: Installation And Legal Issues
The US Department of Housing and Urban Development (HUD) validated the manufacturing home building standards in 1976. However, homeowners often observe the damage to the property during transportation and installation. The responsibility of damaged property generally falls to the local government and home dealers until the ownership is assigned. But, not many property investors know about this. Thus, their investment turns unprofitable as the owners need to bear the repair costs.
Also, the cost of hauling a single home to or from the park is high and requires a professional hauler with a transportation permit (mandatory by govt.) to do the job. To avoid such inconvenience, it is wise to look for a mobile home park buyer and sell the home at a good deal. The benefit of selling your investment property to such buyers is that you don’t have to worry about making major repairs. They tend to purchase the property in its existing condition and offer you a fair deal.
Reason 2: Constant Repairs
Apart from transportation and installation damage, there are several other problems that manufactured houses face. Structural issues, plumbing and moisture, heating and air conditioning, electrical concerns are just a few of the problems homeowners face regularly. Needless to say, frequent repair and maintenance of home parks cost a hefty sum of money to the investors.
Additionally, some investors don’t always increase tenants’ rent (reasons may vary from person to person). Thus, the investment does not provide adequate returns.
Reason 3: Mismanagement Of Communities
Typically, manufactured housing communities are owned and managed by mom-and-pop organizations. Even though they try to keep the property in the best condition, inflation causes the cost to exceed their budget or funds. As a result, the property’s condition slowly and steadily starts to deteriorate.
In addition to this, the health department is getting involved and demanding the property’s renovation in several areas. It is causing a loss to the property owners as the income earned is less than the cost. In such scenarios, it is wise to sell the property and save yourself from further loss.
A Word From Verywell
Generally, people buy manufactured homes for the purpose of investment. However, due to the constant repairs and maintenance and legal issues, the ROI on such investments tends to decline. So, finding a suitable buyer and selling the mobile home park would be a wise decision.