There is no doubt about the fact that real estate an extremely profitable industry but the challenges that it puts forward often create tricky situations. So, if you are rushing to make a real estate investment, you will need to look for a more responsive area. With that said, it would be worth mentioning about the mobile home parks which have been very unconventional but very popular among the people who like dwelling in different conditions. Also, there are various advantages that you, as the owner of the park, can get if you are considering investing your money in mobile home parks.
Advantages of mobile home parks over apartments
Lower turnover rate
In case you are offering a place in Mobile Home Park for rent, it is most probable that the unit would be owned by renter. So, what the renter would really be renting is the place and the utilities which are required in any home.
On the other hand, the renters normally stay in the apartments for no more than 2 years. But Mobile Home Park dwellers tend to stay at a place for longer time probably due the higher costs associated with moving. Furthermore, the cost associated with disconnection and reconnection of utilities is also higher.
Lower maintenance costs
With the fact that the units are owned by renters, the maintenance of living space is not something you have to worry about. However, you need to ensure that the utilities, which you are responsible to provide, are working fine. So, the mobile home park owners are usually happy to save the maintenance costs, which the apartment owners usually despise a lot.
Another major advantage of investing in the mobile home park is the tax benefit which is normally related with the brick and mortar structures. Additionally, the value of land is not likely to decrease in a way the value of built structure does.
And since there wouldn’t be big structures to depreciate, the smaller things like sewer lines and roads can be depreciated pretty quickly.
Additional opportunities to earn more profits
With reduced taxes and lesser costs associated with the maintenance, you get a better chance to conveniently work on other amenities to add more features in the area you own. This way, you can offer certain facilities for certain prices. For instance, you can build a garage to park RVs, sells sheds and offer options for customization. To get better marketing advantage, you can make your park ready even if the units are yet to arrive. The demo of your place can be presented among your audience with the help of Real Estate Virtual Tours.