Do Sarasota Lot Rents Always Go Up?
We at The Mobile Home Dealer get this question all the time from first-time mobile home buyers who are looking to begin their time enjoying all that a mobile home park has to offer.
Homeowners in different Saratosa Florida mobile home parks may see lot rental increases each year due to a myriad of reasons that we are going to discuss in this article.
Once you move into your Sarasota Florida mobile home, located on leased land, one may wonder how long the lot rent will stay the way it is.
How soon will the lot rent go up and how much?
Also, why will lot rent increase in the very first place, isn’t the lot rent already high enough to begin with?
All of these questions are ones that the traditional mobile home Buyer thinks about when purchasing a mobile home on leased land within the Sarasota Florida area.
Do Sarasota mobile home lot rents increase each year?
Generally speaking, the answer is, yes, lot rents will increase each year and it would be unreasonable to think that they will not increase whatsoever or become capped for an extended period of time.
A good rule of thumb when budgeting for your mobile home is to always remember that lot rents will increase at the rate of inflation at the start of each year at a bare minimum. Expect to pay 2% to 3% more for your lot rent each year you’re living in the mobile home park that you currently reside in.
But the question then is, “well, Mark, why does it have to increase at all”?
This is yet another question we field on a regular basis here at The Mobile Home Dealer. The answer to this question is the exact same answer when asking, why does the price of groceries, fuel, or electricity continue to go up each year? It has directly to do with the national cost of inflation and how it affects everything in the economy.
You see, as we all would like to have the cost of things such as groceries or fuel remain the same price each year, they just don’t.
With the mobile home park, for example, most lot rents will include the cost of lawn care, which would be the blowing, trimming, and cutting of your lawn each week for the entire year.
Now, if the cost of fuel is going up each year to run the lawn equipment that is taking care of your lawn, then the owner of the landscaping company will more than likely need to charge the park more each year to keep up with the rising operating costs of their business. The park then will pass these increases in price to you as a mobile home park resident. Although this is a terribly simple example of lot rents increasing, I imagine you are getting the point as to why the lot rent will continue to increase each and every year.
Every so often, lot rents will not increase or will stay stagnant for a year or two without much if any increase.
Many times, this will have a direct relation to the national inflation and how valuable American currency is for that current year.
Although we would all love for mobile home lot rents to stay the same forever, unfortunately, this is a fairy tale and one that should not be expected to happen each and every year.
The following three specific reasons are most likely to affect the price increase of lot rents.
Rising Costs Of Service Providers
Most mobile homes on leased land will have lawn care provided within the monthly lot rent. This may include lawn mowing around each mobile home in the mobile home park, upkeep of all the green space in the common areas, and additional maintenance of trees and flowers throughout the mobile home park.
It is reasonable to expect that each year the laborers and the tools they use for this work will increase. As such, the mobile home park will need to pay these higher rates by the companies they contract for the labor to be accomplished. Increased rates passed on to the park will lead to increased lot rent amounts for the residents.
Whether we like it or not, inflation is a part of society. Simply put, inflation is the rising costs of goods and services that further devalue the country’s currency. This can be attributed to external factors such as the economy or global trade issues but, for this situation, we will just state that inflation increases yearly by around 3% nationwide.
With this understood, expect to pay around 3% higher for lot rent each year.
One of the perks of owning a mobile home on leased land is the fact that, essentially, the park takes care of just about everything in the park other than the upkeep and maintenance of your individual property.
These updates may include the streets in the park, clubhouse, pool, fitness center, and green spaces.
With additional updates such as putting in a new pool or adding a bark park for the community residents to use, someone has to pay for these items.
Anytime a park adds a large public use structure to the community expect your lot rent to increase to pay for 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.