My Rules of Rent Collection for Mobile Home Parks

My Rules of Rent Collection for Mobile Home Parks

Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes

Rent Collection can be one of the biggest pain points while trying to manage a mobile home park.

We have a few rules when it comes to rent collection that allows us to collect at a higher rate than the industry average.

Rules of Rent Collection

1. Never collect in person

2. Run payments via an online platform (We use Rent Manager)

3. Pay a constable or the Sheriff to deliver notices of non-payment 

4. Deliver notices on the 15th of every month

5. We try to work out payment plans with tenants and are mildly successful

What are some rules and trends you have regarding rent collection?

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Mike ReynoldsPro Member
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
2y
Quote from @Logan M.:

Rent Collection can be one of the biggest pain points while trying to manage a mobile home park.

We have a few rules when it comes to rent collection that allows us to collect at a higher rate than the industry average.

Rules of Rent Collection

1. Never collect in person

2. Run payments via an online platform (We use Rent Manager)

3. Pay a constable or the Sheriff to deliver notices of non-payment 

4. Deliver notices on the 15th of every month

5. We try to work out payment plans with tenants and are mildly successful

What are some rules and trends you have regarding rent collection?

 About the same as you except we have the manager deliver late notices. 

Is Rent Manager good with Quick Books? We’ve been using Rent Redi and it’s not going to work out. Several reasons but the Quick Books is a big one. 

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  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    2y
    Quote from @Logan M.:

    Rent Collection can be one of the biggest pain points while trying to manage a mobile home park.

    We have a few rules when it comes to rent collection that allows us to collect at a higher rate than the industry average.

    Rules of Rent Collection

    1. Never collect in person

    2. Run payments via an online platform (We use Rent Manager)

    3. Pay a constable or the Sheriff to deliver notices of non-payment 

    4. Deliver notices on the 15th of every month

    5. We try to work out payment plans with tenants and are mildly successful

    What are some rules and trends you have regarding rent collection?

     About the same as you except we have the manager deliver late notices. 

    Is Rent Manager good with Quick Books? We’ve been using Rent Redi and it’s not going to work out. Several reasons but the Quick Books is a big one. 

  • Summerville, SC · Member since 2018 · 588 posts · 252 votes
    2y

    Logan, some really good points and methods for rent collection.

    We do much of the same.

    We use online processor Schedule My Rent and pretty much make that the only way to pay.  Nice part about SMR is they accept money orders (which we know many MHP tenants like).

    Never collect rent in person.  Been that way at least 8 years.  Read your post about the dangers of confronting tenants in default.  Happy to say we don't do that.  Automated online systems also are great with late fees and other fees.  It's automatic, doesn't give tenants chance to argue or give sob stories, and manage how payments applied. (Ours only allows payments in full - they can't bypass late fees).

    As to delivering notices of NP, we send certified letters.  Nobody hand delivers.  Some cities or counties may require that though.

  • Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Mike Reynolds:
    Quote from @Logan M.:

    Rent Collection can be one of the biggest pain points while trying to manage a mobile home park.

    We have a few rules when it comes to rent collection that allows us to collect at a higher rate than the industry average.

    Rules of Rent Collection

    1. Never collect in person

    2. Run payments via an online platform (We use Rent Manager)

    3. Pay a constable or the Sheriff to deliver notices of non-payment 

    4. Deliver notices on the 15th of every month

    5. We try to work out payment plans with tenants and are mildly successful

    What are some rules and trends you have regarding rent collection?

     About the same as you except we have the manager deliver late notices. 

    Is Rent Manager good with Quick Books? We’ve been using Rent Redi and it’s not going to work out. Several reasons but the Quick Books is a big one. 


    We use REI Hub for our bookkeeping, its not perfect but works

  • Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Dave Rav:

    Logan, some really good points and methods for rent collection.

    We do much of the same.

    We use online processor Schedule My Rent and pretty much make that the only way to pay.  Nice part about SMR is they accept money orders (which we know many MHP tenants like).

    Never collect rent in person.  Been that way at least 8 years.  Read your post about the dangers of confronting tenants in default.  Happy to say we don't do that.  Automated online systems also are great with late fees and other fees.  It's automatic, doesn't give tenants chance to argue or give sob stories, and manage how payments applied. (Ours only allows payments in full - they can't bypass late fees).

    As to delivering notices of NP, we send certified letters.  Nobody hand delivers.  Some cities or counties may require that though.


     I have found that most sheriffs are very affordable like $24 bucks and that holds up in court well.

  • Member since 2023 · 178 posts · 122 votes
    2y

    We have all the same rules and procedures and use QBO for as our accounting software with all forms of payment accepted- online, ach and regular mail.

    We encourage communication.  We let our tenants pick their due dates and also if they would like to split their payments within the month.  Also if a tenant has a cash shortage we allow them to modify their payment due date but they have to pay followthrough on the new date.  They just have to let us know in advance.

  • Summerville, SC · Member since 2018 · 588 posts · 252 votes
    2y

    @Roger D Jones curious, do you charge for any of those options/services?

  • Member since 2023 · 178 posts · 122 votes
    2y
    Quote from @Dave Rav:

    @Roger D Jones curious, do you charge for any of those options/services?


     No... we allow it to build trust and communication.

  • Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Roger D Jones:
    Quote from @Dave Rav:

    @Roger D Jones curious, do you charge for any of those options/services?


     No... we allow it to build trust and communication.


     If you don't mind me asking, how many units are you dealing with? I am just curious about the scalability of this.

  • Member since 2023 · 178 posts · 122 votes
    2y
    Quote from @Logan M.:
    Quote from @Roger D Jones:
    Quote from @Dave Rav:

    @Roger D Jones curious, do you charge for any of those options/services?


     No... we allow it to build trust and communication.


     If you don't mind me asking, how many units are you dealing with? I am just curious about the scalability of this.


     71 over three parks.  Mom and Pop operation.  Every knows me and can put a my name to my face.

  • Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Roger D Jones:
    Quote from @Logan M.:
    Quote from @Roger D Jones:
    Quote from @Dave Rav:

    @Roger D Jones curious, do you charge for any of those options/services?


     No... we allow it to build trust and communication.


     If you don't mind me asking, how many units are you dealing with? I am just curious about the scalability of this.


     71 over three parks.  Mom and Pop operation.  Every knows me and can put a my name to my face.


     How spread out are your communities?

  • Member since 2023 · 178 posts · 122 votes
    2y
    Quote from @Logan M.:
    Quote from @Roger D Jones:
    Quote from @Logan M.:
    Quote from @Roger D Jones:
    Quote from @Dave Rav:

    @Roger D Jones curious, do you charge for any of those options/services?


     No... we allow it to build trust and communication.


     If you don't mind me asking, how many units are you dealing with? I am just curious about the scalability of this.


     71 over three parks.  Mom and Pop operation.  Every knows me and can put a my name to my face.


     How spread out are your communities?

    All within 2.5 hours of each other.  My travel time to the nearest park is 2 hours; 4.5 to the farthest.  
  • Real Estate Investor · Houston, TX · Member since 2010 · 499 posts · 206 votes
    2y

    @Logan M.

    And I bet it has tons more impact when delivered that way They know you mean business

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