MOBILE HOME PARK PURCHASE CHECKLIST
- What is the current monthly income?
- What is the total income for this year?
- Have there been any significant changes in income compared to previous months?
- Are there any recent rent increases before putting the park on the market?
Property Condition and Repairs:
- What major repairs have been done in the last three years?
- Are there any upcoming repairs or maintenance tasks that need to be addressed within the next three years?
- What are the monthly expenses?
- What are the yearly expenses?
- Are there any additional expenses not listed on the rent roll?
- How frequently have rent increases been implemented in the past?
- Is there a specific timeline for future rent increases?
- What is the average rent increase per year?
Tenant Payment History:
- Are there a significant number of late fees? If so, it may indicate problem tenants.
- Can the seller provide proof of deposits and rental payment history for a few months?
Deposits and Additional Income:
- Are there any deposits from tenants, and if so, where are they held?
- Is there any additional income generated from water, sewer, trash, electricity, or other sources?
- How is the income from the laundry facility reported?
- Compare water income with the water bill to identify any discrepancies.
- Are there any potential water leaks or excessive water usage in the park?
- Check the condition of the water system and inquire about water usage on common grounds or RV spaces.
Taxes and Utilities:
- Confirm if there are any outstanding taxes on park-owned mobile homes.
- Check if utility companies require deposits and factor them into the expenses.
- Determine if the property taxes will increase after the sale.
- Review utility bills and compare them with the seller’s reports.
- Assess the overall condition of the infrastructure (water, sewer, electricity, etc.).
- Determine if there is a need for a reserve fund for future repairs and maintenance.
- Evaluate the purchase price based on the property’s condition and potential return on investment.
- Consider making a down payment to have more financial flexibility and cover unforeseen expenses.
Remember to keep the process simple and thorough. If you have any questions or need further assistance, feel free to reach out for clarification.