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Mobile Home Park Investing

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Logan M.
Pro Member
  • Investor
  • Provo, UT
580
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712
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Why I prefer Month to Month Leases

Logan M.
Pro Member
  • Investor
  • Provo, UT
Posted Jan 9 2024, 07:07

I bought my first Mobile Home Park in 2018 and started to realize that every tenant was on a month-to-month lease. At first, I thought this could be a negative but I started realizing a few benefits.

1. Many tenants in MHPs don't care about keeping their credit up when life gets hard and are willing to break their lease regardless of length. You can't force someone to live somewhere or to pay if they just can't.

2. The flexibility to boot problem tenants far outweighs being held hostage by the bad ones.

3. It allows a lot of flexibility with future highest and best opportunities.

4. You can decide when to increase rents.

5. There is nothing cheaper to rent in my market so there are ten potential tenants for each space and because of this, the tenants would be happy being on a month-to-month lease for ten years than finding another place to live with a year lease.

I know some of these sound a little brutal but I would rather leave it up to me to make decisions than have my hands tied. 

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