One of the most common questions we here at The Mobile Home Dealer get is; will lot rents continue to increase each and every year or is there a cap that the mobile home park has where they can no longer raise the rent past a certain amount?
This is a common question for many Buyers as they are looking to budget their money so that they can afford their new Sarasota mobile home.
Mobile homes located on leased land within the Sarasota area are viewed as and taxed as personal property within the state of Florida. The reason for this is that when one owns their mobile home within a mobile home park where each tenant pays lot rent then these homes come with titles and not deeds. The state of Florida does not view mobile homes on leased land as real estate but, rather as personal property.
The average lot rent as of the first of the year in Sarasota County Florida is just over $800 per month.
To some, this may come as a lot of money to shell out each and every month for a piece of land that you are not owning. For others, this comes as a great deal as the lot rent fee is essentially a condo association fee in essence as it takes care of many of the things that an owner would normally have to pay out of their own pocket if they were owning a single-family home.
Many times this lot will cover a combination of the following:
The tenant’s water bill
The sewer bill
The tenant’s trash pick-up bill
The tenant’s lawn care
Maintenance and upkeep of the park amenities such as the pool, fitness center, and community clubhouse.
As you can quickly add up, this lot rent fee does come with quite a bit of bang for your buck.
So, with an average $800 per month lot rent fee for owners of mobile homes on leased land in Florida would it make sense to have the lot rent increase each year, or will it stay the same?
*Before we go any further we want to stress to all of the readers that we are not mobile home park owners, we are not attorneys and we do not work for any mobile home park. With that said please take what we say simply as our experience within the Sarasota mobile home market*
In our experience with selling mobile homes throughout the Sarasota area, we have seen that it is reasonable for the mobile home park to increase their lot rent somewhere between 1%-3% per year. This percentage point will usually match the level of inflation that is going on throughout the rest of the world at that time.
If within the lot rent fee your lawn care is paid for and the cost of gas and parts for the lawn mowers increases 1%-3% per year then it would reasonable to think that the cost of your lot rent will increase at the same rate to reflect the increase that the rest of the world is seeing.
We have also seen where some parks will increase more than the traditional 1%-3% increase. This is usually rarer but, generally speaking, this is done when the mobile home park has been sold and the previous owner did not keep up with the annual increases so the new owner comes in and tries to bring the lot rent up to market value with one crease as opposed to it being done over time like the previous owner should have done.
Rarely, have we ever seen a mobile home park in Sarasota not increase their lot rent each year.
Mobile home park lot rent increases are usually put in place at the first of the year and the residents of the park are notified usually three months before the increase happens so that they can plan accordingly
When buying a mobile home in Sarasota Florida, you must also understand that in some cases, the mobile home park owner can increase the lot rent based on the factors outlined in the prospectus. This is not the case though if the mobile home park is owned by the residents or co-op.
In co-op-owned mobile home parks, the board of directors consists of residents who live in the park that agree on what the yearly increase should be. This is just one of many advantages if you are living in a co-op-managed home park.
When looking at purchasing your mobile home in Sarasota we can not stress enough to budget your lot rent not only for what it is today but what it will be throughout the next several years so that you are in a position to afford your mobile home for years down the road!
Creating a budget for your Sarasota mobile home is an important step for ensuring your financial success. With rising lot rent, it is essential to consider your expenses and plan accordingly.
Start by making a list of all the fixed expenses associated with your mobile home. This list should include lot rent, utilities, insurance, maintenance costs, and any other regular payments. After creating this list, add it up to get your total monthly expenses.
Next, calculate your monthly income. Include all sources of income, such as wages, investments, and any other regularly received funds. Once you have determined your income and expenses, subtract the expenses from the income to determine the net monthly balance.
It is important to compare your income and expenses each month to ensure you are staying within the budget. If your expenses exceed your income, you need to consider ways to reduce those expenses. This could mean shopping around for better rates on utilities or reducing other costs.
Finally, setting aside some money each month for an emergency fund is an important part of budgeting for your Sarasota mobile home. Having a financial cushion in case of unexpected expenses can help you remain financially secure.
Creating a budget for your Sarasota mobile home is an important part of achieving financial success. By keeping track of your income and expenses, and setting aside some money for an emergency fund, you can successfully manage your finances while living in a mobile home.
The Mobile Home Dealer are licensed mobile home broker in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please contact us by clicking this link. You may also visit our Facebook Page and send us a message
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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