Expenses for All Lot Rental MHP Communities

[Charles Seaman]

Hey guys.  I'm an experienced multifamily investor that's looking at a mobile home park community for the first time, so I want to channel your inner gurus for a little bit of knowledge.  For those of you that regularly invest in mobile home park communities, what is a standard expense ratio for an all lot rental community with direct-billed utilities?

[Andy Bauman]

I am NOT a professional in this space yet, and I don't play on on TV, but I have listened to about 50 podcasts on this subject and I hear that a well-run MHP with all lot rentals on public utilities should run in the 30 - 40% expense range.  Of course that depends on insurance, deferred maintenance, size of park, what you work out with the onsite manager, taxes, etc...