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 lot rent.
Lot rent, for those who are new to the blog, is a fee that is owed by the mobile homeowner 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 homeowner 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 their ownership of them and not deeds such as traditional real estate.
If this sounds a lot like purchasing 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
- Lawn Care
- 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 that the cost of fuel will increase that is used for the lawnmowers 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.
In the state of Florida, it is required that if a mobile home park lot rent is to increase then the owners of the park must give all of the residents a 90-day notice of the increase. Many times this is done through mailings directly to each resident’s home stating what the new lot will be and why it is increasing.
Most mobile home parks in the Sarasota area increase their lot rents each year around the first of the year so expect to see this letter come to your home sometime in the mid to late fall if the lot rent will increase.
What we at The Mobile Home Dealer continue to see year after year is that mobile home park lot rents will increase somewhere around 2-3% each year in order to match the national level of inflation. What this means is that if the lot rent is $600 now then it would be reasonable to expect that next year’s lot rent will be around $620 or so.
While the cost of lot rent is certainly due to increase each year there are certain parks that will only increase the lot rent every few years. The reason for this is that many times these parks fail to accurately track inflation and will over-increase the lot rent one year only for the following year to remain the same so that the increase equals out over the following year.
When looking at buying a mobile home on leased land throughout the Sarasota Florida area we always suggest looking at your income now and asking yourself if it will increase over the time period where you are looking to own the mobile home or if it will stay the same. Once this is determined we suggest next asking yourself how long you see yourself living in the mobile home. The reason for both of these questions is to better prepare yourself from a budgetary standpoint to decide how long you will be able to comfortably afford the mobile home parks lot rent so that you are not in position years down the road where you can’t afford it.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.