With a crazy, oftentimes unpredictable 2021 for all wrapping up we now can begin looking forward to all that 2022 brings!
One of the main items that will need to be looked at for all potential Buyers and Sellers of mobile homes within the greater Sarasota Florida area is that of lot rent.
Lot rent, for those who are new to the blog, is a fee that is owed by the mobile home owner each month for usage of the land that their home sits on.
Within the state of Florida, when a mobile home resides on land that is leased and not owned by the home owner then this type of property is viewed as and taxed as personal property and not real property. Homes that are located on leased land have titles associated with the ownership of them and not deeds such as traditional real estate.
If this sounds a lot like purchase a motor vehicle, then you are correct!
Mobile homes located on leased land are titled and registered at the Department of Motor Vehicles just the same way as automobiles are.
It is reasonable to expect a lot rent increase each year.
The reason for this is that many lot rents around the Sarasota Florida area include some, if not all, of the following:
Usage Of Lane
Usage And Upkeep Of Park Amenities
As you can see, what one gets with the basic lot rent is much more than just the usage of the land and is one of the main reasons why living in a mobile home that is located on leased land is such an attractive option due to the affordability of this type of housing option!
Mobile home lot rents usually increase somewhere between 2%-3% in order to keep up with the national inflation seen here in the United States.
The reason for the increase is because the cost of fuel will increase that is used for the lawn mowers to cut your grass along with the wages of those folks who are doing the work, the cost of water, the cost of the trash trucks and so on.
As everyone knows, the level of inflation that we currently seeing throughout the country has certainly hit the Sarasota Florida area full blast and the mobile home communities have not been able to avoid this!
What we expect is a higher than normal lot rent increase leading into the 2022 calendar year due to the rampant inflation that we are seeing throughout the area.
While some lot rents will go up the standard 2%-3% we would expect that the average lot rent will increase quite a bit more in order to off balance the inflation levels in the local Sarasota Florida area.
With rising lot rent costs that will be higher than normal we, at The Mobile Home Dealer, are very interested to see how this will affect the Sarasota Florida mobile home market as a whole as many of the owners of these mobile homes are on some type of fixed income that allows them the ability to afford the current lot rents.
While we are certainly unable to tell what the future will hold for Sarasota Florida mobile home lot rents we do feel that all owners should expect to see, at the minimum, a 2%-3% increase on their monthly bill, if not more.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.