Why Invest in a Mobile Home Park?

Drita Bronkey is a consultant at Zemer Property Management Consultants (ZPMC). The company, ZEMC, is an active player in the housing industry, specializing in the operation of mobile home park communities. Ms. Drita Bronkey, who resides in Farmington, New Mexico, is a member of the New Mexico Manufactured Housing Association. In her professional capacity, Drita Bronkey helps clients understand the pros and cons of investing in mobile home parks.

A mobile home park is primarily a large piece of land where mobile homeowners live in communities. A mobile home park owner rents small land pieces to homeowners, or investors sublet the property to homeowners. As enlisted below, there are many benefits associated with investing in a mobile home park.

1. Investors don't own the homes in a mobile park; they own the land and subsequently only lease portions to interested tenants who take possession of a mobile home unit. Consequently, the homeowner becomes responsible for the repairs and maintenance of their home, taking a load off the investor's shoulders. However, the investor or mobile home park is responsible for maintaining the park, seeing to amenities such as the roads or picnic areas.

2. Mobile home parks are in limited supply because most municipalities restrict the construction of mobile home parks. This protects the market from oversaturation. Investors do not, as a result, have to bother too much about competition. And, there is always demand for a home. Compared to many other housing options, mobile homes are quite affordable for the generous living space they offer. So, investors know that individuals interested in affordable housing would pick up the homes, making the investment a viable and profitable one.

3. Most mobile home parks can gross considerable income, even as much as a multifamily property. However, the tax burden on the investor is lower than what would be the norm with either commercial or multifamily properties.

Before investing in a mobile home park, investors ought to collect data on the area. This informs their decision on whether to commit their funds to the investment. They may consult local realtors, listing platforms, or other local park owners for more information.