Mobile home parks are one of the last affordable housing options, and that won’t be the case much longer.
We will look at the reasons why mobile home lot rent is so high and why it will likely go higher.
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Reasons Why Mobile Home Lot Rent Is So High
For years, the cost of mobile home lot rent stayed consistent. But, in recent years, it’s seen a spike, and most people don’t even know why.
Closing the Spread
Suddenly, mobile home parks have realized that there is a huge spread between the cost of a lot and every other type of housing out there.
- The average price of a house in the US – Averages $200,000 (but it depends on the state)
- The average apartment rent in the US – $2,000 (and climbing)
- The average cost of mobile park lot rent – $275
Parks never felt the need to raise rent to compete because most were owned by mom-and-pop operations.
But that’s no longer becoming the case.
The Repurposing of Mobile Home Parks
Say your lot rent is $275 for a 1500 sq ft lot. That averages to about $96000 / acre / year minus expenses (so ~$50000 profit). So, you can’t really blame property owners for selling (or developing) land at an average of $300,000 an acre in suburban areas for redevelopment.
But, it’s leading to a mobile home lot shortage, along with every other sort of housing.
If a buyer doesn’t repurpose the land, you can bet the professional owners will ask for professional-grade rent.
Now, we are not saying it’s going to get to apartment or traditional home levels. But, professional investors will most certainly raise lot rent.
Can you save money living in a mobile home?
Mobile homes are hands down more affordable than stick-built homes, even in terms of rent. While lot rent is getting higher, it still isn’t close to the cost of an apartment.
Utilities are generally less expensive when living in a mobile home, too.
Because most mobile home parks are mom-and-mom owned, that’s who typically has always run them.
But, when professional investors buy property, they always hire professional park management. And that costs more, which then costs you more.
Professional management does add quality to mobile park living, and it’s their job to keep the park in tip-top shape. So, most of the time, the increase in rent is worth a better experience.
Is it a good idea to live in a mobile home?
Mobile homes are an affordable alternative option to housing. Manufactured homes are easily customizable to suit the needs of your family.
Because of the Housing Shortage
As the dumbest reason, mobile home rent is rising because of demand. There’s a demand because there’s a housing shortage.
It’s become so popular that there are TikTok channels and social media influencers that document their entire lives in vans, mobile homes, and campers.
While the popularity has reduced the stigma, it’s caused rent to get higher and higher.
What are the disadvantages of living in a mobile home?
You’ve got more than a high lot rent to consider before investing in a mobile home.
Mobile Homes Depreciate
A manufactured home starts losing its value when it leaves the factory it was made in. That’s because it isn’t considered real property.
The depreciation rate is around 3% to 4% a year. And as it gets older, that rate does increase.
You can, however, convert your mobile home to real property by just putting it on a slab. Though, you usually can’t go the foundation route unless you own the property.
Why mobile homes are a good investment?
It depends on what you what a mobile home for. If you want to resell eventually, there are far better options.
But, if you want a home that you can make your own and that has room for you and your family, a mobile home is absolutely worth the investment.
More Expensive to Finance
Loans and interest rates are naturally higher on mobile homes because they’re considered personal property. You’ve even got a chance that is mortgage won’t get approved because a manufactured home isn’t considered a permanent residence.
Landlords and Management Have a Say
Landlords and apartment management are part of your life if you rent any property.
In mobile home parks, they keep the community running smoothly. But they also have a say about what you do on your lot, even though you pay rent for that lot. If there’s a final disagreement, it can be very difficult or expensive to move your mobile home.
For example, some parks don’t allow you to work on your vehicles in your personal driveway.
Lots Are Small
Lots will fit your mobile home, but it likely won’t have much of a yard.
Spots are super close to one another, so you’ll likely get to know your neighbor well.
Why do people live in mobile homes?
You’ll likely find that the advantages of living in a mobile home outweigh the disadvantages.
We’ve pretty well covered the fact that while mobile home lot rent is increasing, it still isn’t as high as rent on stick-built properties.
More Privacy Than an Apartment
You might be parked near someone else, but you aren’t sharing a wall, ceiling, or floor. In an apartment, you can sometimes hear your neighbor breathe.
You’ll Have a Community
Mobile home park communities have a village feel that other housing doesn’t have. In these parks, neighbors share activities such as playgrounds, swimming pools, and recreation centers.
You can find manufactured home parks that are family-friendly or have age restrictions. It means you get a say in the community that you join.
Tax, Utility, and Maintenance Savings
Mobile homes are just more energy efficient than any other housing option. Manufactured homes have better insulation and are typically smaller than a stick-built structure. So, you’ll find that you save a huge chunk of cash on utilities.
Making repairs or additions on your own saves you stress and time. You aren’t waiting for someone to decide if you can have a new appliance. You simply replace it yourself.
FAQs about Mobile Homes & Rent
Who regulates mobile home parks in Michigan?
The Manufactured Housing Commission in Michigan regulates mobile home parks by establishing uniform policies that cover all aspects of manufactured housing, business operations, and both seasonal and non-seasonal manufactured housing parks.
What is the mobile home park law in NY?
The mobile home park law in NY requires that a manufactured home park owner or operator provides written disclosure of all fees, charges, assessments, including rental fees, rules and regulations before a manufactured home tenant moves into the park.
Can mobile home park raise rent in California?
The mobile home park in California has the ability to raise rent, as state law does not regulate the amount of a rent increase. However, this is a local control issue. The park must provide a 90-day advance written notice of the rent increase. If a resident is on a long-term lease, it is important to review the language in the lease to determine the frequency (which should not be less than every 90 days) and the percentage of increases.
How much can lot rent be raised in Michigan?
The lot rent in Michigan can be raised at any amount as long as it is not discriminatory or retaliatory, since there are no state-mandated limits on rent increases. Therefore, the determination of the rent increase amount is left to the discretion of the landlord.
Why rent is so high in Florida?
Rent in Florida is high due to a combination of factors such as tepid wage growth, elevated land and construction expenses, a surge in rental demand, and escalating home values, according to experts.
Does Florida have a rent limit?
Florida does not have a rent limit. Landlords in Florida are allowed to increase rent by any amount they choose, as there are no legal restrictions or caps on rent increases in the state.
What are my rights as a mobile home owner in Florida?
As a mobile home owner in Florida, you have the right to sell your mobile home without any restrictions imposed by the mobile home park owner. They are not allowed to create rules or regulations that prevent you from selling your home, displaying a “for sale” sign on or in the home, or require you to remove the mobile home from the park solely because it is being sold.
What state has the highest rent average?
The state with the highest average rent in the United States is Hawaii, where the average monthly rent is $2,399. For new renters, the asking rent for a typical unit in Hawaii is even higher, with vacant units asking $2,850. In Honolulu, the average rent costs around $2,528.
Why is Florida apartments so expensive?
Florida apartments are expensive due to a shortage of housing supply caused by the influx of people moving to the state, resulting in constant high demand and subsequently elevated prices.
How much can a landlord legally raise the rent in Arizona?
Arizona landlords can raise the monthly rent by any amount they deem suitable as long as they provide proper notice to the tenant. Currently, there are no legal restrictions on the maximum rent increase allowed in Arizona.