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We recently updated our Mobile Home Park Investment
Study Course. This is a must have for
anyone who is thinking of investing in mobile home parks,
or currently owns mobile home parks and wants them to operate more
profitably.
When you order the Home Study Course you get
the following:
- 24 CD's and a PDF Download of the Transcripts
- The 540 Page Mobile Home Park Investment Manual
- All of our Forms and Contracts to Buy and Operate Mobile Home Parks
- 24 More CD's with Frank and Dave Covering Mobile Home Park Investment Topics
- The 200 Page Mobile Home Park Due Diligence Manual
- One Free Quick Deal Evaluation
- Free Access to our Weekly Mentoring Hour
To view more information about the home study
course
Click Here.
Why Slowing Things Down Is Essential In Mobile Home Park
Management
When I first got in the mobile home park business, it seemed
like everything came at me always in a sense of emergency. There
was no time to act - only react. There were constant threats
that if I did not make a decision right then and there the
consequences might be crushing. And for about a year or so, I
believed every word of it, and I cringed every time the phone
rang, because I knew that, even if it was Christmas Eve at 2am,
I'd have to run down to the park to solve the latest crisis.
Then it suddenly hit me - I was being scammed. By everyone. The
biggest threat to mobile home park management was exactly what I
was engaging in, working from a position of speed and terror,
and not from one of calm and control. Here's how it happens, and
how you can correct it.
Tenants
Mobile home park tenants are very good at using "the system" to
their advantage. They know how to manipulate people. These are
essential survival skills for most park residents, whether in
the park or in prison. They have learned from experience that
their best chance of getting what they want is to railroad
people into making snap, and bad, decisions, with little
information to go by. In their world, everything is a rush and
if they don't get what they want right now, they're going to sue
you or call the authorities.
I remember getting calls from them in the middle of the night
demanding that I be at their home at 7 am to fix their doorknob,
or air-conditioning (this is back when I still had rentals) and,
if not, they were going to turn me into the authorities.
Clearly, this could not go on forever. I was losing my sanity,
and the park was losing money.
So one day I just put the brakes on. I turned off my cell phone
at 10pm. I did not rush to call tenants back. I did not freak
out when they threatened me. And you know what? Nothing
happened. I didn't get sued. I didn't wake up to find swarming
inspectors. None of the threats came to be.
Now, you can't just hide from your tenants. The first thing you
have to do, before you can slow things down, is know the laws.
You need to become an expert at landlord/tenant law. And you
have to make sure that your park is in decent order and can
withstand the scrutiny of an inspection.
The next thing is to let all the calls (unless you recognize the
caller I.D.) go to voicemail. This sends a message to tenants
that you just don't care enough to be there for them. They need
to grow up and take care of themselves. And it insulates you
from the screaming threats that most calls include.
When a tenant has a problem, let them know that you'll get to it
when you can. You are not making any special exceptions for
them. Think like a big company - do you think that your local
Saturn dealer is going to drive all night to make your warranty
repair? No. They may offer concierge service at the Ritz, but
you'll have to charge the tenants $300 per night if they want
it.
Vendors
Every repairman, with a few exceptions, that sets foot on your
park is wanting to rip you off. Some are very moral people, but
darn it, they need cash to cover their bills. Never think
anything to the contrary. Give them the same trust as the allies
would a German prisoner in WWII. Every time a plumber tells you
"you need to re-pipe the entire sewer system starting right
now!" tell them you'll have to get multiple opinions and bids,
and then you'll get back to them on that breakthrough concept [I
might add that I have never re-piped an entire utility system,
although I've been told by contractors that it was essential
about 100 times].
And even when you have a bid, and are certain the work needs to
be done, don't get in a hurry. Look at your budget. Can you
afford it right now? I've found that only master-metered gas and
electric normally produces life-or-death decision making. The
same would be true for failing private water and sewer systems.
But the point is, be calm and in control - never be rushed into
a bad decision. Look at the pilot who landed the plane in the
Hudson River. He never got anxious, he stayed level-headed
throughout. That's always your best mindset for success.
Conclusion
If you are already past the rushing phase, I'm proud of you. If
you are not, then turn over a new leaf that you are getting out
of the stress business. Everything can wait a day. There's no
reason to be in a hurry. If you can get those pressures behind
you, you'll be a lot happier, live a lot longer, and have a more
profitable park.
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Workers Compensation Insurance And Husband / Wife Park Management Teams
Recently, one of our insured's advised us that they hired a husband and wife to
manage their community. However, at the couple's request, the community paid all
the couple's joint salary exclusively to the wife. When we found out about this,
we advised the insured that paying them this way is a bad idea.
Workers compensation insurance pays for lost wages and medical expenses
associated with on the job injuries of employees. Employees are defined as those
receiving wages. Thus, if the husband wasn't receiving wages and was hurt while
working for the park, the workers compensation insurance carrier can reasonably
deny the claim. Therefore, we recommended that the community owners pay the
husband at least part of the compensation so that the workers compensation
insurance policy would cover him, too. Workers compensation costs are driven
much more by total payroll than by number of employees so the premium effects of
this change were minimal.
Mobile
Insurance
Kurt Kelley
25775 Oak Ridge Drive, Suite 110
The Woodlands, TX 77380
Phone: 800-458-4320 ext. 17
Fax: 281-292-7429
Email
Kurt@mobileagency.com
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