Manage episode 331950018 series 2887243
In this brief episode of The MHP Broker’s Tips and Tricks podcast, Max Baker explains the meaning behind the star system used to describe the layout and condition of mobile home parks.
Max is the co-founder of The MHP Broker. This and all of the Tips and Tricks podcast episodes are brought to you by our proprietary Community Price Maximizer. Use this four-step system to get the highest price possible for your mobile home park or RV community when you sell it through us. Guaranteed. Ask us for details.
Here Are Show Highlights:
- Mobile home parks are given one to five stars to rate them qualitatively. ( 00:48)
- A park with a one-star rating is in the poorest condition. There are likely to have older homes in bad shape and dirt roads (mis)managed by the park owner. On occasion, you’ll see dirt roads that look to be in pretty good shape, but they’re often owned and managed by the local community. Often, these one-star parks are out in the country or around very small towns. (01 :19)
- Two-star communities are a step up. You might have gravel roads and newer homes, maybe from the 1980s and 90s era. The curb appeal is a little better than a park that gets a one-star rating. What I think of as a “high two” rating is one in which the water and sewer situation is slightly better than a “low two” park. You might also see less clutter in the yards, so the aesthetics are slightly better. Two-star communities aren’t usually found outside of larger cities, though they’re worth more if they are. They’re usually around mid-size cities. (2:30)
- Three-star communities are what we typically see and sell. The homes are newer and in better shape, the roads are paved and the water/sewer situation might be well and septic or city water and sewer lagoons. That’s better than the water/sewer infrastructure in one- or two-star parks. (3:21)
- Four-star communities are similar to the threes, but they have such amenities as playgrounds or a pool. These amenities might be a little tired-looking, but they add more appeal to a community. (3:59)
- I’ve only had an opportunity to sell maybe six five-star parks in my career. They don’t come on the market very often. They have very nice amenities, and the setting looks more like the grounds of a class A apartment complex. Many of these five-star communities are now owned by REITs, and aren’t likely to go on the market anytime soon. (4:28)
Call Max if you’d like our frank estimate of how many stars your own mobile home park community rates. Just drop us a line at firstname.lastname@example.org or give Maxwell Baker a call at 678-932-0200.
Power Quotes on This Episode:
“You don’t really see (one-star parks) too much anymore because there’s a lot of investment coming in to the industry.” (1:19)
“Those two-stars can make a lot of money, depending on where they are.” (2:30)
“This is our bread and butter.” (three-star communities) (3:21)
“They have amenities.” (four-star communities) (3:59)
“These five-stars have the amenities, just like the fours, but they’re super duper nice…excellent curb appeal.” (4:28)