Rural North Texas - going rate for lot rent?

Question

Hi all,

We are looking at a parcel of land that has a mobile home on it in a rural part of East Texas, just outside of city limits.  Our plan is to buy the land and lease the lot back to the mobile home owner.  What is the going rate for lot rent?

This is not a mobile home park; it is on septic but has city water and trash service, which the tenant pays.

Thanks!

Andy

Andy Webb · Answer

Thanks for the suggestions!  It looks like market lot rent is around $250-350 in the broader area.

We are doing a lease-back to family and will have to come in under market rent.  This just means we cannot expense our activity out there at the moment.

Bud H. · Answer

I would call a local mobile home park and see what the going rate is.

Curt Smith · Answer

Hi Andy, make sure you are following local ordinances and get needed permits.

I use craigslist.org for your area, search "lot rent".

Also google:  "mobile home park - your area name"

Then call a few parks.  What I find is that parks have fallen behind raising rates / rents.  IE the local parks may be charging $150 for the past 10 yrs.  It's best to set your rent high.   Just guessing, $300+ ish.

I always put up test ads in craigslist at rents higher than I plan on getting.  You can do this right now!

In the end you will need to set as high a price as a few prospects can afford.  Your test ad will tell you alot.