So I have a 1+ acre lot here in Lake Wylie SC, and it has a great well and septic approved for 4-bedroom. I'm not ready to build something decent on that lot quite yet. I was wondering if there's a market for renting this land to folks who want to park their mobile home on it? The property is zoned for mobile homes, as long as they're not pre-HUD.
- How would I find such "land tenants"?
- What could I charge for rent (for just the land)? Keep in mind, I will maintain well/septic--they need only pay for power.
- What potential pitfalls do I need to watch our for?
- What does such a lease need to say specific to this situation?
Any information/direction would be greatly appreciated.
PS: I'm also open to the idea of buying a MH and putting it on my lot and renting it out like that. But that's a whole lot more work. LOL!
First, ask zoning authorities if MHs are allowed there! If so, then;
The value of the property can derive rents, apply a cap rate (like 10%) and compute a payment over a term of 10, 15, 20, 30 years and add taxes and liability coverage as well as 10% for messing with it. Judgment will tell you what might be had at the annuity amounts. Also look at similar areas and rents as being comparable if you can.
Look at a residential lease, you can delete items pertaining to improvements, except as to items as to sewer and well/water and utilities, you do maintenance, they need their own utilities in their name before dragging in a MH.
You also need a deposit, see how much a drag off fee would be if the bail on you.
I suggest you obtain a UCC filing on the title to secure your interests in past rents, costs, expenses and damages as well as attorney fees in collections and court costs, the MH is personal property. Now, that said, check with @Ken Rishel liens may have changed for MHs, but I'd secure my position, since they can hook up and take off.
Get liability insurance. you might get coverage for the well with a residence on the property but you can't insure it. Have hookups inspected.
I'd try leasing the land first, when you build later on you'll need to dispose of that old trailer, hopefully you can sell it to another dealer.
There are many here who work the MH angle, they may have other comments. :)
In South Carolina we use UCC filings and lien positions on the title.
As far as ground leases and other issues are concerned, I would check first with the Manufactured Housing Institute of South Carolina (803) 771-9046 and talk to Mark Dillard.
Wow! Thanks @Bill Gulley ! I didn't expect such a wealth of information so quickly! I really appreciate it. Great information to get me started. I guess I have a bit of homework to do. :)
I would also say that if you think you want to build on that lot one day, don't rent it out as a MH space. Generally, once a home is placed on a lot, the owner won't want to move it ever. It's quite expensive to move and setup one.
Thanks, @Leslie A. . Good advice. If I do go this route, I certainly wouldn't plan on asking my tenant to move any time soon. That's OK with me. This land is in an up-and-coming area, and a rezoning would allow me to subdivide, but that won't happen for several years, I'm sure. So it's probably better if I sit on it and let a family park their mobile home there for a good long while.
@Terri Pour-Rastegar - what did you end up doing here? I'm in the same boat with 2 MH lots and I'm really liking the idea of less to no maintenance by renting the lots to MH owners.
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