What Is A Mobile Home Park
There is no doubt that more people are now choosing minimalist living because of the rising cost of the housing market. If you are planning to buy land for development, building a mobile home park can be a profitable and manageable start. It generates steady monthly income from lot rents without losing ownership of the land itself. Running a park can also be a long-term business that benefits future generations.
According to the Mobile Home Park Home Owners Allegiance, there are more than 45,600 mobile home parks in the United States, with over 5,500 in Florida. The Financial Times estimates that about 22 million Americans live in mobile homes due to escalating housing prices. Many wage earners cannot afford traditional homes, and even renting consumes a large part of their income. As a result, mobile homes have become an affordable housing option.
An Aerial View of a Manufactured, Mobile, Prefab Double Wide Home Being Installed in a Lot in a Park
A mobile home park is a designated area where mobile homes are placed. Some are privately owned by individuals or corporations, while others are resident-owned parks where tenants hold shares instead of the land. Mobile home parks can operate on leased land or owned property, depending on ownership structure and fees.
Why Build A Mobile Home Park From Scratch
Starting from the ground up allows you to customize the park layout, amenities, and business model. However, it also requires more planning, capital, and regulatory compliance. Below are the 12 key steps you need to take if you want to build a mobile home park from scratch.
12 Necessary Steps To Start A Mobile Home Park
1. Choose the Name for Your Mobile Home Park
Selecting the right name may seem simple, but it is crucial. Ensure your park’s name is unique and not trademarked. Check the availability of the domain and make it short, memorable, and easy to market. A catchy, simple name helps you stand out in a competitive industry.
2. Create a Mobile Home Park Business Plan
Every business begins with a plan. Your business plan should outline your market understanding and operational strategies. Include details like:
- Location and demographic research
- Executive summary of your park concept
- Company overview and park type (leased-land, resident-owned, RV, or resort)
- Industry analysis, including market trends and competition
- Marketing and pricing strategies
- Operations and maintenance plans
- Management structure
- Financial projections, capital requirements, and funding sources
3. Create the Legal Structure of Your Mobile Home Park
Register your park with the Secretary of State and choose the best structure for your needs:
- Sole proprietorship
- Partnership
- Limited Liability Company (LLC)
- S Corporation
Many investors prefer LLCs for their liability protection and tax flexibility.
4. Secure Startup Funding
If you have personal savings, you can use them as startup capital. Otherwise, explore financing options such as bank loans, crowdfunding, or private investors. Always consider the risks and choose financing that aligns with your long-term goals.
5. Register Your Mobile Home Park with the IRS
If you plan to hire employees, you must obtain an Employer Identification Number (EIN). Sole proprietors may use their Social Security number instead.
6. Open a Business Bank Account
Keep your business finances separate by opening a dedicated bank account. This helps manage revenue, track expenses, and maintain transparency.
7. Get a Business Credit Card and Business Cards
A business credit card improves your company’s credit history and simplifies expense tracking. Additionally, physical business cards remain a valuable networking tool.
8. Secure the Required Permits and Licenses
Regulations differ across states and cities. You may need zoning approval, special use permits, or manufactured home installation permits. Always check with your local government to stay compliant.
9. Get Business Insurance for Your Mobile Home Park
Business insurance protects your investment. Common policies include:
- General liability insurance
- Workers’ compensation insurance
- Commercial property insurance
- Business interruption insurance
- Professional liability insurance
10. Buy or Lease Park Equipment
Essential tools and equipment for park maintenance include:
- Lawnmower or tractor
- Chainsaws and trimmers
- Garbage or dump truck
- Pressure washer
- Shovels, ladders, and golf carts
11. Develop Your Marketing Materials
Marketing plays a vital role when you build a mobile home park from scratch. Essential materials include:
- Logo – hire a designer from Freelancer.com
- Website – showcase amenities, rental details, and contact information
- Social media – use Facebook, Instagram, and YouTube to reach potential tenants
12. Open Your Mobile Home Park for Business
Once all steps are complete, you can officially open your park. Focus on social media promotion in the first few months to attract your initial tenants and build brand awareness.
Other Things To Consider
While the idea of building a mobile home park from scratch is promising, there are challenges to anticipate.
You May Struggle to Get Traditional Funding
Banks often hesitate to finance mobile home park projects. Alternative sources like seller financing or private loans can help, but they carry higher risks. Evaluate your options carefully.
The Amount of Work Needed
Developing land for a mobile home park requires extensive labor and management. It’s more demanding than running an existing park, so plan thoroughly and hire experienced workers.
Final Words
Building a mobile home park from scratch can be easier than developing a traditional subdivision. With proper planning, research, and financial preparation, you can create a sustainable source of income while providing affordable housing options. Although it requires patience and diligence, the long-term rewards make it a solid investment for aspiring property owners.
Are there any programs/apps you’d suggest that can help maximize/utilize the land when we are in the planning stage? We want to make sure we are getting the most homes and amenities on site without feeling crowded.
Thanks
Hi Darryl!
Thanks for commenting.
When planning out a new mobile home park we would always suggest contacting the local city and county government to see what they will require you to do for spacing. Once you have their rules in hand you will be able to get a better idea of exactly how to maximize the space for your new park.
Best of luck!
Is it possible to plan out a private mobile home park and have purely private tenants?
Are there any Mobil home park developers that are seeking a partnership that would develop a park in Southern California. We have a 48 acre piece of land and are seeking an experienced partner to develop this land.
Thanks for commenting Jayne, welcome to the community! We do not have any contacts in that area of the business located in Southern Califorina at this time.
I hope your week is going great! I’m reaching out as I have a client interested in selling 85 acres in Dade City. I was wondering if your team has any interest in it, the property is not currently on the market and we are reaching out to builders directly for interest.
The property is technically in Hernando county and the parcel number is R13 423 21 0000 0030 0019. Happy to discuss more details if you woud like.
Thanks for commenting Connor, welcome to the community! As licensed mobile home Brokers in the state of Florida we can only sell mobiles in parks on leased land. If your client is looking to sell property then they would best benefit from speaking with a licensed realtor as we do not have the license to help on this transaction. Hope this helps!
Hi, I might be interested in buying your property. You can contact me with more information 203-619-2310 Toddhays1967 @gmail.com
Thanks Todd, what property are you interested in?
Hi Connoe
How could we speak?
I’m interested in exploring options for your land and want to develpp a mobile park.
You can send a phone message at seven two zero, five eight five, six three five zero.
Thanks for the comment, please let us know how we can help as we will be happy to do so.
So scared but willing just need guidance and a mentor in the Danville va. 24541 any suggestions or pointers will be helpful in my area.
Thanks for connecting with The Mobile Home Dealer Kevin, we don’t handle new mobile home park builds in our office. We wish you the best of luck in starting!
Hello! I want to put a double wide on property I own in in Lamar SC, 29069 zip code. Nothing is out on the land. Can you provide me with a list of developers. Thank you Legacy builder.
Hi Deborah: Thank you for connecting with The Mobile Home Dealer! We do not have a list of contractors in Lamar South Carolina at this time. Our best suggestion is to have you contact a local dealership in the area to see what referrals they can provide you. Best of luck!