With the Holiday decorations packed away until the end of the year and the rush of snow birds 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 of 2022?
If you are looking at finally taking the plunge and buying your piece of paradise here in the Sunshine State one needs 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 for 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 as 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 as 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 home owners 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 ever 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 that has the price for all goods and services rise 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 image 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 the 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 their fees and compare these to other parks you are interested in purchasing within.
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.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.