Many Americans have turned to mobile home communities as an increasingly popular housing choice. They’re an excellent option for older people or those who want to strike a balance between renting and owning a home. And as more people become interested in mobile home living, new opportunities to manage these unique living spaces are created. For property managers, these communities can offer several benefits and challenges. If you want to explore the benefits of mobile home management in the Portland metro area, this guide is for you.
Pros of Mobile Home Management
Mobile homes offer some of the most affordable housing options in the U.S. That makes them a stable investment for any property manager in it for the long haul. As the demand for housing in Portland continues to increase and home prices keep going up, mobile homes offer residents an economical yet more permanent form of living than traditional rentals. The benefits that mobile home communities offer their residents are also appealing to landlords. Let’s look at some of the pros of mobile home management in Portland.
Reliable Source of Income
A top benefit of mobile home management for property managers is the potential for stable rental income. Mobile home tenants tend to be long-term. Some may own their homes but rent the land in the mobile home community, which makes moving undesirable and expensive. This reduces the time you need to spend advertising your listings, screening new tenants, and coping with rental vacancies. Overall, those factors can lead to a steady and stable cash flow.
Low Maintenance Costs
Compared to traditional homes and apartments, mobile homes often have lower maintenance costs. Because mobile home tenants own their homes, they are responsible for the maintenance, repairs, and upkeep. As the landlord, you only need to worry about the maintenance expenses for the park itself, which will likely be far lower. This helps you save on repair and upkeep expenses so you can focus on your ROI. It also helps you avoid the daily struggle of finding and working with reliable contractors.
Affordable Initial Investment
As housing prices in Portland go up, small landlords may find it difficult to balance the initial cost of a property investment with the income they’ll eventually earn. Mobile home communities offer a solution. Andrew Lanoie, Founder and CEO of Four Peaks Capital Partners, says mobile home parks “offer the lowest cost investment per unit of any real estate asset class with potentially higher risk adjusted returns.” Because you own the land in a mobile home park rather than the homes themselves, you can often expect to pay as little as a tenth of the cost of a mobile home lot compared to an apartment unit.
Fostering a Community
Mobile home developments offer some unique opportunities to create an appealing community atmosphere. When it comes to tenant retention and attracting new tenants, building a strong sense of community can make a huge difference. When you manage a mobile home park, you can organize events and social activities to benefit your tenants and keep them happy in their homes.
Managing a mobile home community can often lead to more streamlined operations. As you have control over the entire community, you have a large degree of control to run it how you want. In addition, evicting people from mobile home communities often tends to be less complicated and time-consuming compared to traditional evictions. If you’re dealing with serious tenant issues, this can save you a headache.
Cons of Mobile Home Management
While mobile home communities offer managers a number of benefits, it’s important to consider the challenges as well as the appeal. Before investing in a mobile home park in Portland, keep the following potential cons of mobile home management in mind.
When managing a traditional home, you can generally feel assured that your property will continue to appreciate value over the years, even if your rental business is struggling. With mobile homes, this may not always be the case. Mobile homes tend to depreciate in value over time, which can make it difficult to recoup your initial investment if you decide to leave the rental business.
Portland has a number of unique laws and regulations that apply to the rental market, and mobile home rentals are no different. If you don’t stay up to date on local and state laws, you may find yourself running into legal issues, which can cost you a pretty penny.
People are always in need of housing. However, demand for mobile home rentals may fluctuate more than that for traditional houses and apartments. When managing a mobile home community, property managers must be prepared to adapt to changing market dynamics.
Work with the Experts
Managing a mobile home community is a unique undertaking with a number of benefits. However, as with any rental unit, the key is to understand the unique challenges of mobile home management before diving into the business. Steady rental income, lower maintenance costs, and streamlined operations all make this style of rental appealing to managers. Just make sure you’re ready to deal with the nuances of mobile home leases, regulations, and demand. Ultimately, your decision to pursue mobile home management should be determined by your goals, risk tolerance, and willingness to navigate the complexities of the mobile home housing market.
No matter what type of rental you manage, Portland owners must have a deep understanding of our area’s specific pros and cons to make the most of their business. With the right management, a mobile home community can be an amazing investment opportunity.
If you have questions about Portland’s unique rental environment and the pros and cons of different real estate investment opportunities, Rent Portland Homes by Darla Andrew can help. We’re proud of our long legacy in the Portland area and the in-depth knowledge of the Portland rental market we’ve earned as a result. When you work with us, you benefit from our years of experience with all types of property management businesses in our area. From tenant issues to legal concerns, our number one priority is to treat you, your tenants, and your property right, while ensuring your investment is a long-term success. For more information, reach out any time.