Updated over 6 years ago on . Most recent reply
Rent comps when no parks around
How do you compare rent comps when there's no other mobile home park in your immediate area/city viable on Google map?
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Jack Martin
#3 Mobile Home Park Investing Contributor
#3 Mobile Home Park Investing Contributor
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- Scottsdale, AZ
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Jack Martin#3 Mobile Home Park Investing Contributor
#3 Mobile Home Park Investing Contributor
- Specialist
- Scottsdale, AZ
To expand a little on what's already been said, I would start with the apartments in the area.
- Call them and ask how much a 2 bedroom apartment is? It should be at least 2x the lot rent at a mobile home park in the same neighborhood.
- Make sure to ask how many vacant units there are to choose from. If you find that the apartments have a low vacancy, that is a good sign. If you find high vacancy, that is a red flag for the market and you should be cautious.
- You should always consider the cost of apartments, because if if it costs them more to make payments on the mobile home plus pay the lot rent, they might just rent an apartment instead.
That is a quick way to determine the lack of demand and where lot rent should be in the market. You can also run some test ads to see what kind of response you get. That would be the next step for you anyway.