Ahh yes, lot rent, the monthly payment that is owed to the mobile home park where your Sarasota Florida mobile home is located for the usage and upkeep of the property that your mobile home resides on.
A necessary evil for all Sarasota Florida mobile homeowners.
For those of you who are new to the blog, let’s provide a brief review of what lot rent is and what lot rent is not.
When buying a mobile home within the greater Sarasota Florida area, within a mobile home park on leased land then lot rent will be paid to the park each and every month you reside in that mobile home park.
Lot rent is the amount of money that is paid so that you have the usage of the land that your mobile home resides on.
Most parks throughout the greater Sarasota Florida area will include various other fees within the lot rent such as your water bill, sewer bill, trash bill, usage and upkeep of the park amenities, and even lawn care.
As one can see, you do get quite a bit of bang for your buck with the lot rent fee when living in a mobile home around the Sarasota Florida area.
It would be fair to expect that lot rent will increase each and every year you reside in the land-leased mobile home park.
Generally speaking, lot rent will increase somewhere in the neighborhood by 3%-5% annually.
This increase will help the mobile home park offset the expenses associated with the increased fees they are seeing from their vendors who cut the grass, service the onsite amenities, and the increased county expenses associated with the water, sewer, and trash bills that are included in your lot rent.
Obviously, this is only a gauge when estimating the increase as much of this increase is based on the overall inflation numbers that the economy is seeing.
Within the state of Florida, it is mandatory that the mobile home park provide at least a 90-day notice to all of their residents of the upcoming lot rent increase. This will be greatly appreciated so you as a mobile home owner within the Sarasota Florida area do not get caught off guard with an increased payment that you were not expecting.
Most mobile home parks within the Sarasota Florida area will increase their lot rent at the start of the year so make sure you are on the lookout for the letter stating what, if any, increase there will be and for how much sometime in the early Fall of the current year.
Lot rent will be a continued fee that mobile homeowners who reside in a mobile home park on leased land will need to pay.
The important part of this payment is the ability to plan your financials around the increase so that you are not caught off guard by the yearly increase and then in a position where you are not able to afford to live in the mobile home of your dreams within the Sarasota Florida area!
Why does lot rent cost continue to increase?
In a nutshell, the demand for mobile homes is increasing. As the pandemic progresses, young adults who had taken refuge with their parents are moving out. People who had roommates now want to live alone. Couples who are separated or divorced each need their own place.
“During the last year, households began to divide into smaller homes,” said David Bane, analyst of Florida Mobile Home Community, an online market and community for Florida mobile homes.
“People realized that they wanted their own space and flexibility, so suddenly there are people who would have shared housing in a normal environment looking for individual units.”
At the same time, the availability of new mobile homes has stagnated. The interruptions of supply chains, combined with the shortage of workers and materials, have caused generalized construction delays.
The number of American homes grew by 1.48 million last year, according to census data, as more people branched on their own.
The real estate market and the mobile home sector have become highly competitive during the pandemic. The average sale price of a house increased almost 17% last year to a record of $81,700, according to the National Manufactured Home Owners Association (NMHOA).
But as the rich acquired second houses and investment properties, housing is increasingly out of the reach of many others.
The rough estimates that almost 1 million American tenants were left out of the housing market last year, due to the increase in prices and competence of cash offers.
As a result, the mobile housing buyers sector for the first time has decreased to a minimum of eight years, which means that more people are renting for longer than expected. That has given the park owners and companies a wide margin to increase rentals.
At the beginning of the pandemic, there were cities, states, and companies that established limits to rental increases and, in some cases, frozen prices completely.
The pandemic has caused drastic changes in the way people work and live. Among them is the opportunity for white-collar workers, particularly in high-salaried industries such as technology and finance to work from anywhere
As a result, experts claim that there are workers who move from expensive hot spots, such as San Francisco and New York City, to more affordable enclaves, such as Texas, Tennessee, and Florida.
“That richest demographic group is generating much of the heat in the mobile home market at this time because they are the ones that have the dollars to spend and compete for the limited inventory that exists,” said David Bane.
Having said that, not only are lot rents increasing in mobile home parks in the Sarasota Florida area, but also all types of property rentals that include apartments and traditional houses.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.