Jersey City, NJ · Member since 2016 · 23 posts · 13 votes
I'm looking at MH in Texas. I looked at a recent rent roll and everybody was MTM. I was told that most tenants go month to month after initial lease is up, but something about this sounds fishy. Does anybody know what industry standards are here? I'd like to see 1 and ideally 2 year leases. Also can anybody recommend a good MH Prop Manager in Ft Worth area for small park (15 pads)
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
9y
@Joseph Chan This is standard for some parks. I've seen it done both ways. Higher end parks and lower end parks have done contracts, usually renewing every year. Though, I'd be weary among the ones who try to do 5 year contracts. Most times, these parks try to keep their tenants and may have issues refilling the lots due to market demand and/or condition of the park. As for a property manager, that's a bit small for a full-time employee. Most times, these smaller parks are self managed. Good luck!
Rental Property Investor · Friendswood, TX · Member since 2010 · 663 posts · 508 votes
9y
@Joseph Chan MTM is fairly common. TX is a good state to own a park in . Some go one year and then MTM. Some MTM off the bat. Given the choice, if the state permits it, i would offer a MTM lease, this is the assumption on Tenant owned homes. Park owned homes, i personally would probably shoot for a year on the front end but its going to depend on your plans and goals if you own any of the homes.
You will have a hard time remotely running 15 spaces with the expectation of a third part manager. You will have to structure a way for it to run and have some level of involvement in it. If its park owned homes, i would say know. The spreads have to be there as well even if you check a couple times a year, its going to cut into your earnings a bit.....