One of the biggest misunderstood aspects of the mobile home park approval process.
Today, we look to explain what income verification is, how it is factored in to the mobile home park approval process and why it is imperative to the mobile home park to have this information on hand in order to make an informed decision on whether or not a resident application is approved.
When looking at buying a mobile home within the greater Sarasota Florida area the Buyer always needs to remember that putting in an accepted offer is only half way to closing on their new mobile home.
The reason for this is that all mobile home Buyers who purchase a mobile home on that is located on leased land within the greater Sarasota Florida area will need to obtain park approval prior to moving in to the mobile home park they desire.
Park approval is the process for which the Buyer needs to submit certain pieces of documentation to the park office in order to make sure they have been approved to become a resident within the mobile home park.
Many parks will check the applicants criminal history, credit history and their income verification.
Income verification is when the mobile home park takes all of the income from whomever is on the park application and adds it all up see how much money they make per month. Most of these parks will add in all types of income including; retirement income such as pensions, social security, employment wages, alimony and any other monies that are paid to the applicants on a regular basis. Once this amount is totaled the park office will take this and compare it to how much the lot rent is currently at for the mobile home park.
Most mobile home parks usually like to see a 2-3X income to lot rent ratio.
To further illustrate this number here is an example of how a mobile home park may calculate the income to lot rent ration:
Lot Rent: $500
Total Income Of Applicant: $2,000 Per Month
In this example, we see that the applicant has a 4X monthly income to lot rent ration which will, more than likely, approve them for the income verification aspect of the mobile home park approval process.
Most mobile home parks around the Sarasota Florida area will use the income verification as a way to predict how likely the applicant will be able to pay their lot rent when regular monthly expenses are also looked at.
If the total income is not close to the 2-3X number then the applicant will more than likely not be approved as a resident as the mobile home park may view them as not bringing in enough money to support their ability to successfully pay the lot rent each and every month.
Please note, this is total income for all applicants on the application. So, for instance, if there are two Buyers on the same application then the total number will be added up from both applicants.
When looking at buying a mobile home within the greater Sarasota Florida area it is always important to fully understand what the requirements are for the mobile home park you are looking to live in prior to making an offer on the mobile home. Having a clear understanding of what a park is looking for within their application process will allow you, the Buyer, to have an informed idea of if the park you are looking to live in will meet your needs.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.