Lot rent is one of the most important things both beginners and tenured mobile homeowners are always keeping eye on. As more and more people each day want to buy a mobile home, especially in the greater Sarasota Florida area, understanding the lot rent bill could save you a lot of unexpected financial blunders.
When it comes to owning a mobile home regardless of whether renting or buying, the majority of questions always revolve around the lot rent. before we dig deeper into the topic, let’s know the lot rent basics first.
What Is Lot Rent On Mobile Home Parks?
Lot rent is a lease payment paid by the mobile homeowner to the park owner where the mobile home is situated. The homeowner may get a loan for the mobile home, but not for the land where it is sitting. Lot rent is required from those who want to become a resident of the mobile home park. Without paying the rent, one will not be allowed to park or sit in their mobile home inside the park.
Why Does The Land/Park Owner Ask For Lot Rent?
The lot rent is used to pay utilities, amenities, park maintenance, infrastructure upgrades, and everything the park provided to the homeowners. Of course, the land owner needs to make money and live and in this world nothing is free. Mobile home parks need water, electricity, lawn mowing, garbage collection, etc. Without the lot rent, these services could not be possible. A mobile home community functions like other conventional neighborhoods too. When planning to live inside a mobile home park, the best question to ask the park manager is “What is included in the lot rent”?
The monthly lot rent bill is something that will never seem to go away for the owners in Sarasota Florida whose home is located within a leased land mobile home park.
To some who are not familiar with this monthly payment, it may seem like a lot of money being paid for something that you do not own.
For others, it is an extremely affordable way to have a maintenance-free lifestyle where nearly everything is taken care of for all the residents within a mobile home park.
When buying a mobile home in Sarasota Florida that is located on leased land we at The Mobile Home Dealer want to make sure all Buyers understand the top three questions that should be asked before moving into a mobile home park with leased land.
Question 1: What Does The Lot Rent Include?
This is going to be, by far, the most important question that will need to be asked by all residents within a Sarasota Florida mobile home park. Most mobile home parks will include, what we at The Mobile Home Dealer, refer to as your Big 5. These are your water bill, sewer bill, trash bill, lawn care, and the usage and upkeep of all the park amenities. While most parks in the greater Sarasota Florida area include these it is important to note the rising trend in parks that now are asking the resident to pay for their own water usage. Having exactly what is included and what is not is an important question to ask when considering any mobile home park to buy in.
Question 2: When Does The Lot Rent Increase?
It is reasonable to expect an annual lot rent increase of anywhere between 2-5% annually. While most mobile home parks within the Sarasota Florida area increase their lot rent at the start of each year it is important to know when exactly the park you are looking at purchasing in expects to increase its lot rent. Some parks increase the lot rent in the middle of the year so knowing exactly when to expect a lot rent increase will help all Buyers in budgeting their upcoming expenses.
Question 3: When Was The Last Lot Rent Increase?
As mentioned in the point above, many mobile home parks increase their lot rent each year, however, not all mobile home parks follow this. Some parks will increase their lot rent on expected inflation for the following year and overshoot the amount which, in turn, allows them to not increase the lot rent for the following year. While this may sound like a good thing, it is important to be very cautious of mobile home parks that have not increased their lot rent for several years as this could lead to a larger-than-normal increase all at once in the coming years in order for the park to offset all of the previous years where they did not provide a lot rent increase.
When looking at buying a mobile home within the greater Sarasota Florida that is on leased land it is always important to know all of the details about the park’s lot rent before deciding to buy a mobile home. Being well educated on exactly what the lot rent includes, when to expect an increase and when the last time an increase was done will help you as the new Buyer to have a better idea of what exactly to expect when it comes to the lot rent in your Sarasota Florida mobile home park.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.