|
LESSONS FROM THE
OLYMPICS
The 2008 Olympics in Beijing offers an important lesson to the
manufactured housing industry. Here you have an event where athletes
have taken a certain specialty, a certain strength, and turned it
into an extremely advanced skill. Some of these people you and I
could beat in at least a dozen parlor games, but in their specialty,
they are the tops in the world. So that begs the question: what is
the specialty that the manufactured housing industry has to offer –
what can it alone focus on and excel at?
In my opinion, our specialty is affordable housing. That’s what we
do well, That’s our strength. We can put a customer in a detached
home for less money than anyone else on earth. So why can’t we
accept this specialty and run with it?
I think it’s about time we stopped confusing the public with what
our strength is. I don’t think it’s building the most attractive
form of housing. I don’t know anyone who becomes breathless with
excitement with a glimpse of our product. Those two story homes that
sit on dealers’ lots are cool to look at but don’t sell that well. I
never hear folks at the local country club talking about the latest
manufactured home designs along with the latest Lexus models. Let’s
face it. Our strength is not beauty.
Our strength is also not quality of construction. We all use the
sales pitch that you can build a home better in a factory with
factory testing and storing of materials, but every time I walk in a
home and feel it jiggle and bounce, I am guessing that the whole
“better quality” sales pitch is out the window with most customers.
So what do we excel at – what can we win a gold medal at? The answer
is affordability. Nobody does that better than we do. Our cost per
square foot is lowest. We are the national champion in that
category. And we are the only form of housing that someone who earns
minimum wage can actually afford. Or who retires on $1,000 per month
in total monthly benefits. For someone on a low budget, we are the
Michael Phelps of detached housing.
While most manufactured home community owners have realized and
accepted out niche, and are moving away from overzealous attention
to rules enforcement and landscaping that customers never cared for
anyway, most manufacturers have still not taken the hint. Many
manufactured home community owners have come to realize that the
only way to fill lots in their communities is to buy homes, bring
them in, and sell them on location. There certainly is no future in
waiting for the local dealer to sell a home – and even then, you
would be competing with at least 10 other properties trying to
attract that customer to their manufactured home community. If your
focus is affordable housing, and you are trying to buy and bring in
a home, obviously your goal is to buy the least expensive home
possible. Yet this concept is lost on most manufacturers. I have
called to get prices to buy a home to fill a lot, and the
manufacturers all want to sell you on the more expensive models –
they want you to focus on upgraded drapes and kitchen cabinets.
Instead, they need to focus on building the cheapest home in the
universe, and marketing that to community owners. For over a decade,
the manufacturers have been pushing the price point higher and
higher and, let’s face it, it hasn’t worked. Sure, you can build a
$50,000 singlewide, but will anyone ever pay it off? I think we all
learned the answer to that question with the chattel collapse. Let’s
focus instead on building truly affordable housing. Let’s cut out
every possible upgrade and extra. Let’s strive to build an ever
cheaper home; one our customers can afford and will pay off the
mortgage on.
If you were to go door to door in any manufactured home community,
and ask the residents why they live there, the resounding answer
would be “because it’s cheap”. You won’t find a bunch of eccentric
millionaires, and you won’t find retired symphony orchestra
naturalists who want to commune with nature. Instead you’ll find men
and women who have a limited budget and are trying to wring some
sort of quality of life out of a small income. Let’s listen to this
majority and get our heads screwed on straight. The customers want
cheap – let’s deliver it!
This theme can also be lost on manufactured home community owners.
While rent raises have driven many community lot rents to
stratospheric levels, many owners do not seem to realize that there
is a glass ceiling on how high they can go. When your sum of lot
rent and home mortgage starts to break the $1,000 barrier (or even
$800 level in most markets), you are no longer affordable housing.
There are a million options at that price point; houses, condos,
apartments of all types and locations. Nobody is going to live in a
manufactured home community if they can own a brick house instead. I
talked to an owner of a four-star community recently, and found he
is having to buy out at least 10% of the homes in his property per
year to keep the homes from being sold and pulled out. Why? His
customers are leaving in droves. Why shouldn’t they – his lot rent
is $600 per month, not including utilities. When you load in their
home mortgage, they’d be crazy not to redirect that money to a
better housing option. And this same guy is still raising the rents
annually. Clearly, this is a flawed business model. Many community
owners have apparently lost sight of the affordable housing goal.
So what can we, as an industry, do to win the gold medal – to have a
thriving, successful business that revolves around our strengths and
the strength of demand in the market? The answer is for all of us to
focus our energies on doing things as cheaply as possible. We need
to be thinking “affordable housing” 24 hours a day. We need to
deliver a product that is cheaper each year, not more expensive.
That’s what the market wants. That’s what we have the ability to
deliver. Until we do this, we are not even going to qualify for the
finals, much less win a medal.
Joanne Stevens
August Newsletter
August 2008
From the Office of Joanne Stevens.
Real Estate Broker and Consultant for parks and
communities throughout the United States.
OWNERS
& BUYERS
What each
thinks is important:
Do you want to manage your real estate asset for
maximum value? Here are a few ideas to help you make more money when you sell,
or to at least better understand the marketplace for parks and communities.
BELOW MARKET RENT
What Sellers Think:
Owners sometimes think buyers want the rent to be
below market so that the buyer can increase it. Likewise, owners oftentimes
think their occupancy is stronger than the competition because their rent is
less. The theory is that residents move their homes to different communities
because of lower rent. The truth is, it is rare that a resident moves due to
higher rent. And, a move by a resident to another community within the same
market is very rare. There’s usually more to a move than just rent increases.
Rather, it’s things like having difficult neighbors, poor relations with
management and real or perceived crime on the premises. An example is one in
which a very large portfolio owner of parks and communities, regardless of the
local economy, occupancy or any other factors, raises the rent $10 to $20
annually. When that owner purchases a park or community, residents are told
their rent will go up every year. Residents don’t move out. They are motivated
to ‘stay put’ because they like their neighbors, like the location and feel good
about calling the community “home”. This portfolio owner’s parks and communities
are $80 to $100 per month higher than their competition. Some sellers think
below market rents make a favorable impression on the buyer. It does, but read
What Buyers Think.
What Buyers Think:
Buyers like parks and communities with below
market rent because of the up-side potential. But, they won’t pay for the
up-side potential. Buyers base what they’re willing to pay on actual income.
FINANCING
What Sellers Think:
Sellers think financing is an easy, no-brainer
proposition, that capital is plentiful, interest rates are low and terms are
easy.
What Buyers Think:
“The only way you can get a loan is if you don’t
need a loan,” said a very experienced, financially strong investor recently on
obtaining financing in today’s market. This community owner has been investing
in parks and communities for decades and said that he has never seen financing
as difficult to obtain as it is today. Banks are nervous and the market that was
awash in capital is no more. Buyers know that obtaining financing today is
much harder and more expensive than even a year ago. Higher capital requirements
are negatively impacting buyers’ yields. There is still capital and lenders
wanting to make loans; it’s just that interest rates are higher, the
amortization is shorter, and the down payments are in the range of 25% to 40%,
not the 10% to 20% range of a year ago. All of these factors lower the yield so
the buyer can’t pay as much. Additionally, banks are scrutinizing the actual
property much more than in the recent past. For example: Fannie Mae
(government-backed lender) now requires at least 50% of the park and community
sites be large enough for sectional homes.
VACANT SITES
What Sellers Think:
Vacant sites are a plus because of the upside
potential profit from selling homes on vacant home sites as well as the upside
potential for increased rental income from filling and renting vacant sites.
What Buyers Think:
Vacant sites are a minus because of the capital
required to purchase and finance homes, as well as the talent and knowledge
needed to market, show, sell, close, and warrant, not to mention the myriad of
other details needed to sell homes. There are more buyers willing to sell homes
in communities than in the past. The community business is trending toward a new
business model (which is really the original business model of the1950’s to
1970’s) where the park or community owner is also the retailer for the homes,
both new and pre-owned.
There was a time in the 1990’s when vacant sites
actually had value because investors could easily connect with a multitude of
local retailers, all vying for vacant sites for their home-buying customers.
Although that day is gone, it is re-emerging because the sub prime housing
problem is causing consumers to look at lower cost housing options that also
offer liberal seller financing. Today, community owners will finance buyers that
have been foreclosed on. The community owners view these buyers as good buyers
that got some bad advice in the heady, no down payment days of the housing
bubble.
SELLING HOMES ON-SITE
What Sellers Think:
Selling homes on-site will be easy for the new
owner. Park and community owners feel investors have more time, money and
expertise to sell homes. Owners that don’t sell homes on-site think selling
homes is “like shooting fish in a barrel”. (That’s a quote from an owner who
never sold homes.)
What Buyers Think:
Selling homes on-site takes a lot of resources.
Who will sell the homes? Is it realistic that a manager can manage a property as
well as sell homes and still be affective at both? Where will the homes come
from and what models will sell? Who will do the customer walk-through of new
homes and provide service? If the buyer rents a home, who will do repairs and
maintenance? Yes, there is profit potential, but the investor is going to weigh
the upside against other alternative investments and buy the one with the least
risk and the least drain on resources. For many investors there are easier ways
to turn a buck than by selling homes. Still, some park and community investors
have made it their business to not only become skilled at selling homes, but
have also geared their organization to doing exactly that. They know full well
the pitfalls and the costs of selling homes. They view the so-called upside of
selling homes as strictly that - Upside. It is only through their own capital,
time and talent that any homes will get sold. Therefore, selling homes doesn’t
add value to the present owner.
NEW SIGNAGE, NEW LANDSCAPING, STREET REPAIRS
ANDCLEAN-UP ADD VALUE
What Sellers Think:
Sellers spruce-up their park or community when a
sale of the property is being contemplated and often believe that new paint and
shrubs will make them money.
What Buyers Think:
Buyers expect things to be in good repair and in
working condition. They are not looking for perfection. Paint, landscaping and
signage won’t register with buyers because they figure that’s how things should
look anyway. But, if the property has a run-down appearance, the buyer is apt to
think the property has problems that they cannot see.
GREAT REASONS TO BE IN THE PARK AND COMMUNITY
BUSINESS
In our country, home ownership is promoted as the
‘American Dream’. Home ownership over time does add to the household’s net
worth, and government policy favors home ownership, as the tradition in the U.S.
has been that home ownership is the fastest, most efficient way to lift people
into the middle class. Manufactured housing in communities counts as home
ownership. With the housing sub prime debacle, now is a good time to examine
housing needs.
According to Nicholas Retsinas, Director of the
Joint Center for Housing Studies at Harvard University, “in recent years we have
been obsessed with creating new homeowners; we have been less concerned about
sustaining home ownership. We are seeing an increasing number of foreclosures
that are forcing people to vacate their homes and undermining the neighborhoods
the homes are located in. The fastest growing populations are foreign-born
households and people of color. Minority households will constitute two-thirds
of the net new households over the next 20 years we’re going to have to revisit
the role of high-density housing. We’ve got to find a way for the housing market
to address the diverse needs of a very diverse population.” (from Developer
Magazine, March/April, 2008). It looks like there will be some opportunities for
community owners. In addition to the foreign-born and minority households are
the blue collar baby boomers that will be retiring in droves (they started
turning 60 in 2007) and are worried about their finances. They will be seeking
less expensive housing in which to live out their golden years.
RECORD KEEPING
To make your property more valuable, keep good
records and use good property management software.
Today there is fabulous, user friendly software.
(If you are having trouble finding software, give me a call at 319.378.6786).
Good records and software will not only make your life as a manager and owner
more efficient, but it will also make you money when you go to sell. When owners
don’t have good, accurate financial information, the buyer and the lender will
err on the conservative side, thus discounting income and/or bumping up
expenses. This makes your property worth less.
CEDAR RAPIDS & FLOODING
Thank you to all that have contacted me about the
recent flooding in Cedar Rapids. Your messages and thoughtfulness meant a great
deal. Our downtown office location was flooded and it will be 6 months or more
before we can move back in. We have set up shop in a temporary location. It’s
estimated that 3,800 homes were lost to flooding. Cedar Rapids Mayor Kay
Halloran, at a FEMA press conference, announced she didn’t want any ‘FEMA
trailers’ in Cedar Rapids and that the citizens deserved better. At the next
city council meeting, quite a few citizens who lost homes to the flood let the
Mayor know they would be glad to have a FEMA trailer. FEMA mobile homes have
begun arriving and are being sited in manufactured home communities in the area.
They are late-model, 14’x64’ manufactured (HUD) code homes. Interestingly, they
are not putting in foundations or piers in their sites. The local media, city
and county officials, as well as flood victims have been very positive about the
homes.
And one more thing - no parks or communities were
flooded.
Mobile Home
Park Due Diligence Manual - Every Park Investor should Have a Copy!
WHAT WILL YOU TELL YOUR GRANDCHILDREN IF YOU MISS THIS
OPPORTUNITY TO BUY MOBILE HOME PARKS?
You only need one mobile home park. That’s all you need to create a sizable
asset and a consistent source of income. That’s assuming you buy it and operate
it correctly.
There has not been a better time to buy that one park in the last decade. Due to
problems in the commercial real estate lending market, prices for parks have
plummeted over the last six months. Desperate sellers are dumping their parks at
prices far less than construction cost. Just look at the prices on the site.
Notice how many sellers have written on their price “must sell”, “desperate”,
and “all reasonable offers accepted”. And they are also advertising “seller
financing available”. It is, without question, a buyers market.
It wasn’t always that way. Just twelve months ago, people would complain that
there were no good deals out there. For sure, there weren’t many. Sellers were
trying to get 6% to 7% cap rates. And many were including in their numbers rent
raises and increased occupancy that didn’t even exist. Going through the list of
parks for sale on the site was frequently depressing – where were the good
deals?
Well, they’re here now.
So how can just one park change you and your family’s life? Here’s the economics
based on a 30 space park that you buy for $270,000 from an anxious seller. Let’s
assume that the park is 80% occupied (24 lots) and the lot rent is $150 per
month and the expense ratio is 30%. Then that gives you the following net
income: [ 24 x $150 x .7 x 12] = $30,240. Based on a sales price of $270,000,
that’s an 11% cap rate.
Let’s say you can increase the lot rent by $10 per month each year, so that in
year five the rent is $200 per month net of utilities. That’s pretty plausible,
right? Let’s also assume that you are able to fill just 3 more lots over that
five year period, through aggressive marketing and thinking outside the box.
That’s not much, right? Well, let’s look at the net income now: [27 x $200 x .7
x 12] = $45,360. That’s a cap rate of 17% based on your purchase price. Pretty
good, huh?
So what can you do with that 17% cap rate. Well, you could sell the park at a
10% cap, and put $183,600 in your pocket before tax. Or you could hold the park
until the mortgage is paid off and put $45,360 in your pocket annually (assuming
you never rent another lot or raise the rent another dollar, ever). And don’t
forget that you only put $54,000 [20% of purchase price] down on the park.
That’s a 300% return on your investment within 5 years, on pretty conservative
assumptions. Try and make that kind of return on any other form of real estate,
especially now.
Interested?
To learn more about the mobile home park industry, you will find ample books,
CDs and courses on the industry on MobileHomeParkStore.com. These products
are produced by Frank Rolfe and Dave Reynolds, who have over $100,000,000 in
park deals under their belts, and who are real people with real experiences and
real facts to convey. Although the materials are lengthy [some are up to 700
pages long], they are easy to read and completely essential to not make a
mistake buying or operating your park.
So there’s a road map for you to improve the lives of you, your kids, and your
grandchildren. And the opportunity is right now.
Mobile Home Park Books & Resources
Mobile Home Park
Bootcamp - Don't Miss your Spot at our September Bootcamp.
Comments from our 1st Bootcamp - June 20,
2008
Dave and Frank,
We wanted to drop you a note thanking you again for an outstanding Boot Camp.
Given the high-quality of your other materials, we had very high expectations
for the course, and you greatly exceeded our expectations. It was obvious that
you had invested an immense amount of time preparing for the course, and the
selection of topics and quality of the materials, which were filled with much
new information, was outstanding. At the start of the course, you mentioned that
you both operate this business by the “golden rule”, only selling products that
you would buy yourself. We feel that you have easily achieved this goal. Thanks
again
Again, we have been so impressed and grateful for the quality of your
information and your generosity. It is not surprising to us that you both have
been so successful in your business endeavors. If there is anything that we can
do for you (e.g., act as a references), please do not hesitate to ask.
Thanks again for a great seminar,
Steve and Rebecca
Dave and Frank,
I wanted to personally thank you for the excellent job you did on
your first bootcamp.
Having attended and organized similar events, I can say without a
doubt that you did your homework by going above and beyond what was
expected of the attendees.
From the materials, which included cds, handouts, spreadsheets,
forms, guest speakers, binders to writing equipment, you did a
first-class job. Even the vans were new! The fact that great meals
were included was also impressive.
Doug M.
MobileHomeParkStore.com Comments
from our Customers!
8-22-08
Thank you! Your site is doing it's job - we have had multiple hits on our
website via yours so I know you have a good site.
Appreciate your help,
Stephanie Pigg
Advantage Auction & Realty, Inc.
Are you a manufactured home owner or community owner with homes or
lots for sale or rent?
If so, then you can list your new and
used mobile homes for sale or rent and lots for sale or rent for
FREE at
MHBay.com
Q&A with Dave
Question:
Dear Dave,
Thank you for your quick response to
my question. I still am a little uncertain about
what exactly to do, now that I have the tenant
out. Is there a multi-step legal
procedure to clear away the potential claim of
ownership interest on the MH,
in order to get it back free and clear? If there is ,
can you walk me through it?
Another question..... is it normal to not require a
securiy deposit from tenants that
are just paying pad-site rent?
If it is usually required, how much deposit ?
Respectfully,
Eric
Answer:
Eric,
I have never had a tenant get evicted under the lot
lease agreement and then come back and claim any
ownership interest in the home. I use a rent-to-own
agreement or a lease / option agreement and since they
default on the lease they assume they have defaulted on
the other. I am sure that there are people out there
that would like nothing better than to assert a claim
such as this, but it is very rare and as long as your
agreement is well written I don't see them having a
chance anyway.
As far as the legal procedure, I don't know of any
unless you sell the home and then carry the paper and in
doing so transfer the title and hold a lien on it. Then
you would have to go through repossession procedures.
For a RTO or Lease/Option, I would provide them with
notice that they are in default. If they will sign
something to agree with you then all the better.
However, as I said before this has never been an issue
for me.
As to your other question, it is normal to require a
security deposit. I usually require $100 or $200. I
would guess about 50% of the park owners require a
security deposit.
Thanks,
Dave
Question:
Dave,
I have been in the trailer court game for 11 years even
though I am only 34. My question “Is there an industry
standard for calculating the worth or sale price of a
trailer court?” I realize courts can be as different as
grains of sand and the location makes all the
difference. But, is there a base type calculation by lot
or income or something?
Thanks for your time.
Andy
Answer:
Andy,
I have a couple of formula's I use to get an idea of the
park value but they are just for a quick evaluation.
Average Lot Rent x Number of Occupied Lots x 60 (where
park pays water & sewer)
Average Lot Rent x Number of Occupied Lots x 70 (where
residents pay water & sewer).
However the best way to come up with the value is by
using a Net Operating Income
and Cap Rate Approach
Net Operating Income divided by Cap Rater = Value
Net Operating Income includes operating expense only
(don't deduct for depreciation or mortgage payments).
Those are the basic formula's I use but as you say
location is key in most cases.
Thanks,
Dave
Question:
Dave
Read most the book last night. Great stuff.
I bought my first park this past year. Sounds alot like
your example number 2. Bought
my second 2 months ago that one is pad only and doing
well and have my 3rd under contract. (pad only also)
Here is my question. I get the 10/20 rule. But with a
10% cap rate are you doing that off of current pad
rentals or market pad rentals?
For example, one park I am looking at now, the monthly
pad rent is $120 per month. The market rent for that
area is $160 per month.
The second question is on expenses, if you are looking
at a park, and know you are going to RTO the homes, do
you put the expenses currently it takes to repairs homes
or in the analysis do you anticipate that those are
going to come down.
Also, what % of income do you see on average for pad
only parks versus parks that have greater than 25% park
owned homes in them?
Thanks so much. I have to go now and do a lot more work
on due dilligence and look at my numbers again.
Dave
Answer:
Dave,
Thanks for the comments on the book and I wish you
success as you continue to buy and operate more parks.
As for your question. When we talk about the 10/20
method it can really be the 8/16 or the 7/14 method
depending on the area and market you are in. You need to
base the first number in that formula on current rents.
So in your example, you would want to buy the park based
on a 10% cap at the current rents. Then as you increase
the rents to market and then on an annual basis you
would start approaching the 20% cap. Also, reducing your
expenses will aid in that.
However, if you are buying it at an 8% cap on current
rents then you may target a 16% cap. 8/16. The first
number is the current situation and the second is where
you want to get the park to.
As for the second question, I will take out of the
formula both the income over pad rent for the homes you
are renting or are going to RTO and also the expenses
that are attributed to the rental homes (insurance,
maintenance, extra management, higher collection loss,
taxes, etc). I want to get to the point where we can
anticipate the income and expense as only a pad rental
park in coming up with the value. After that I will add
in an amount for the rental homes based on what I could
sell them for cash or what it would cost me to buy a
home down the street in similar condition and then move
it into the park and have it setup and ready to go.
And for the expense ratios on parks with and without
rental homes (over 25% rentals). This can vary quite a
bit but I would say an average pad rental only park will
have an expense ratio in the 35-40% range. A park with a
significant amount of rentals will be in the 50% range.
Good luck with the diligence and thanks again,
Dave
Question:
You know Dave. You really have helped me. I hope to meet
you at some point in the futures and a seminar etc. Will
go ahead and buy your other books this week. Small
investment for the return. After reading your book and
each example trade. In less than 3 hours, I completely
rethought my strategy in our parks.
My first park I bought was for $660k. 41 pads, with 37
Park owned homes. I did a walk through but not knowing
what I was doing just assumed that most MH's were in
this bad of shape. What I have noticed is that when we
have an eviction, the home needs a complete rehab. So we
are finding out now what you expressed. Owning homes is
a money pit. The quandry is that I have multiple people
in the buziness that say owning the homes is a great way
to double cash flow. Some months are very good and some
are marginal. However the problems are many. Thank
heavens that the other 3 parks are mainly pad only.
Last question:
I want to sell of the homes "assets", believe I could
get around $2500-$5000k "as is", but the bank has
possession of 17 of the titles as collateral. Just
wondering how I work around that?
dp
Answer:
Dave,
You are welcome and I am glad someone else agrees with
us on the homes being money pits (we add people to that
list constantly). Anyway, my suggestion is to go talk
with your bank about releasing the titles to the homes.
Explain to them that by selling the homes you will
decrease the expenses of operating the park, decrease
the turnover, and by converting the renters to owners
you will be creating a sense of pride of ownership. Feel
free to have them read our articles or even give us a
call to confirm this. You may have to pay them a grand
or two to get the releases in some cases but most banks
will work with you if you present it right.
If they won't release the titles then your only choice
is to keep going as is or sell them to the residents
with the understanding that they won't get title until
the bank releases them. I have done this but it is
probably not the best option.
This would be your call.
Thanks,
Dave
Question:
Dear Dave,
I want you to know how impressed I
am with your whole operation. I consider you guys to be
a jack pot of knowledge and
helpfulness for for beginners like myself. Thank you.
I do have more questions now, if
you would be so kind to indulge me once again:
In the case where I sell a MH to someone in my
Park and he pays lot rent separately and makes payments
on the purchase of his MH using the
Lease/option-2 part
contract that I got from your site,....if he suddenly
stops making all payments
.....as I understand it, I can evict him on the basis of
his lot rent violation... but
what happens to the Mobile Home??... I want to get it
back.. how do I do
that?...What are the steps?
I am also interested in finding out more about the Due
Diligence Service that you provide. Should I call you
about that?
Respectfully,
Eric
Answer:
Eric,
Thank you for your comments and you are welcome.
As for the mobile home sales on a lease/option or rent
to own. Typically you will have them sign a lot lease
agreement as well as the option or rent-to-own
agreement. If you do have to evict them, you will do so
on the lot lease agreement and don't even bring up the
RTO. Once they are evicted under the lot lease I have
never had someone try to take the home with them. If
they can't pay the rent then they can't afford to move
the home. Plus they are in default with the option or
RTO agreement as well and don't have a leg to stand on.
Sometimes I will offer them a few hundred dollars to
move out before going to court under the condition that
they clean up the home and it is not left full of trash
and with a bunch of holes in the wall. This incentive
often helps them to move and
under better terms (less house destruction goes on).
As for the due diligence you can call myself or Frank.
Dave - 800-950-1364
Frank - 573-535-0206
Thanks again,
Dave
Question:
Dear Dave,
I am having a heck of time getting bad people that don't
want to pay rent out of my park. we just purchased 30
days ago but no cooperation
from several tenants. I am a hard time with Rules &
regulations... on what is right or wrong... which way
would be the best.... PLEASE DON'T or NOT TO BE
TOLERATED or I am just not sure right now. please some
insight would be very very appreciated.
Marisela
Answer:
Marisela,
My thought is that you need to start setting precedents.
That is, take the 2 or 3 worst tenants and then file for
eviction (if you or your manager don't have the
knowledge on how to do that, then use an attorney). You
have to take control and then every time someone does
not pay, you file and before you stop the eviction they
have to pay all the rent, the attorney costs, and any
filing fees.
In most cases, people will figure out you mean business
and will find the money to pay. Otherwise, you don't
want them there anyway.
Thanks,
Dave
Tell us what you think!
We'd love to hear what you think of this issue!
We need your articles and press releases - send
your articles to
dave@mhps.com to be included in
upcoming newsletters. Where else can you put your press releases
and articles in front of thousands of people for FREE!
Please send your comments, questions, articles, and
ideas for upcoming issues to us at:
dave@mhps.com
Your feedback matters to us!
Visit us at
www.mhps.com or
www.mhbay.com
Until Next Time!
Dave Reynolds
MobileHomeParkStore.com
18923 Highway 65
Cedaredge, CO 81413
PH: 800-950-1364
FX: 970-856-4883
|
