With the Holiday decorations packed away until the end of the year and the rush of snowbirds in full effect, one needs to ask, what will happen to the lot rent you are paying on your mobile home in Sarasota Florida for the year 2022?
If you are looking at finally taking the plunge and buying your piece of paradise here in the Sunshine State you need to be conscious of the fact that lot rent will increase sometime throughout the first quarter of the year. Knowing when this increase will happen and how much will help you, the mobile home Buyer, get a better idea of how to budget your dollars when purchasing your new mobile home.
Mobile homes in Florida that are located within land-leased communities are viewed and taxed as personal property and not real estate.
In a nutshell, what this means is that the home that you are purchasing is very similar to purchasing a vehicle. In this transaction, you do not own the land so property taxes do not apply but monthly lot rent is a bill that every Buyer needs to budget for.
Lot rent is a fee that is paid to the mobile home park for the usage of the land that your home sits on.
Certain parks may include additional bills within the lot rent such as the homeowner’s water bill, sewer bill, trash bill, lawn care, and usage of the park amenities such as the pool and clubhouse.
Lot rent will never be paid off, rather, this is a bill that will be paid monthly for the foreseeable future.
In order to pay for the lot rent the resident of the home will need to sign a land lease with the mobile home park that puts the resident as the responsible person who is required to pay the lot rent each month to the park.
Failure to pay the lot rent may result in the tenant and their home being put through the eviction process so, needless to say, this is a bill that needs to be taken seriously and paid on time each and every month.
It is reasonable to expect that lot rent will increase somewhere between 1-3% annually regardless of what the lot rent is currently at.
The reason for the increase is because, with many of the bills included above, the cost increases each year and the mobile home park needs to account for the additional fees that they are being charged by their service providers. These additional costs that the mobile home park are being charged will then be passed on to the resident themselves.
Most mobile home parks increase the lot rent amount each year based on the national inflation percentage as the price for all goods and services rises each year.
With the higher-than-normal inflation, we are seeing throughout the United States we, here at The Mobile Home Dealer, are seeing higher-than-average mobile home lot rent increases across the board.
What we continue to see at the time of this writing is instead of lot rents increasing 1-3% we are seeing 3-5% and in some cases as high as 10% for each lot within the mobile home park.
As you can imagine this is a sizeable increase, much more than the previous years.
With the higher-than-average increase for 2022, we hope to see a smaller if any at all increase in lot rents for 2023 as the rest of the world economy begins to get back to normal post-pandemic.
When looking at purchasing a mobile home within the greater Sarasota Florida area that resides in a land-leased park make sure you fully understand what the lot rent is and what it includes. Another important question to ask the park manager is a list of all past lot rent increases over the past several years to see how the park has increased its fees and compare these to other parks you are interested in purchasing within.
Different mobile home parks inside the Sarasota Florida area require different amounts of lot rent. Your options will be based on your financial capacity, preferred location, and size of the mobile home.
If you are looking to buy a mobile home inside the greater Sarasota area, thorough research is much needed.
Don’t get fixated on a beautiful mobile home you just found online. That mobile home might be sitting on a mobile home park that requires a land lease that costs more than your targeted budget. If you have limited time and resources to search for the most appropriate mobile home for yourself and your family, hiring a professional brokerage firm like The Mobile Dealer will ease a lot of burden on you.
Being a well-educated mobile home Buyer will help get you a better idea of what exactly to expect when purchasing your mobile home within Sarasota Florida.
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 get in touch with 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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