To run a mobile home park is a good business. Sometimes though, cash-flow is not as good as you desire. But, don’t worry! There are wise and easy means of generating mobile home park cashflow. In this article, we will discuss the top 5 strategies on how you can make more money out of your park. Importantly, these procedures are not something hard to comprehend and they actually work!
So, let’s get started.
1. Raise Rent Carefully to increase Mobile Home Park Cashflow
In the first place, the direct means to enhance the cashflow is to increase the rent. But do it carefully. A great number of mobile home park owners are intimidated by high rents. Yet, if your rent is much lower than what it should be, each month that you stay, you are further bleeding out cash.
To begin with, start by doing some research. See the prices of rent for parks nearby. If your rent charges are too low than others, increase them gradually.
For instance, if the majority of the parks are charging $400 per month and you are charging $300 then you can increase it by $25–$50. This is cheaper compared to the market rate but makes you earn more.
In addition, provide your tenants with lots of notice. Explain nicely as to why the rent is being raised. Most tenants will understand.
In other words, even small rent hikes can increase your mobile home park cashflow as months pass on
2. Fill Empty Lots
Next, if you have empty lots, fill them! Empty lots mean lost income. The more homes you have in your park, the more rent you receive.
But how can you fill them?
There are a few ways:
First of all, bring in used mobile homes: You can buy used homes at a low cost and place them in your park. Then you can rent them or sell them with financing.
Secondly, work with dealers: Some mobile home dealers can place homes in your park for free if you help them find buyers.
Lastly, offer move-in specials: Give small discounts or free rent for the first month to attract new tenants.
Clearly, every filled lot increases your monthly income. Therefore, don’t let your land sit empty!
3. Cut Unnecessary Costs to increase Mobile Home Park Cashflow
Another clever way through which more cash can be pumped into the business is cost-cutting. At times, you do not need to make more money; all you need to do is to stop wasting it.
To start, check your utility bills. Do you pay for water, sewer or trash for your tenants? If yes, think in terms of re-billing those utilities to the tenants. This is called “utility pass-through.“
Secondly, consider your maintenance spendings. Is there a possibility of changing to cheaper service providers? Would lawn care cost go down if one allows tenants to maintain their space?
Also, review your insurance. Maybe you are overpaying. Shop around for better rates.
Consequently, your deposits every month will directly increase the amount of mobile home park cashflow.
4. Add Extra Income Sources
In addition to rent, there are other ways to make money from your park. These are called “ancillary revenue.” They may seem small, but they add up!
Here are some ideas:
First, laundry machines: If your park does not have washers and dryers, think about adding them. You can earn money every time someone does laundry.
Next, storage units: Offer small storage spaces for rent. Tenants will gladly pay for a safe place to keep extra items.
Then, pet fees: If tenants have pets, charge a small monthly pet fee.
Finally, late fees: Always charge late fees when rent is overdue. This not only increases income but also encourages timely payments.
Additionally, you can even charge for extra vehicles or offer reserved parking spots for a fee.
In conclusion, these small income streams help you earn more without raising base rent.
5. Improve Park Appearance and Management to increase Mobile Home Park Cashflow
Lastly, it is attracting better tenants that a clean and safe park is boasting. And better tenants equals regular rent, less problems and less vacancies.
To begin, start with the repair of broken fences, cutting of grass, and maintaining the streets. Paint old buildings or signs. These changes are not an expensive cost, but you have a great-looking park.
Also, put clear rules for tenants. Tell them what is right and what is not. Enforce rules fairly. Such does not make your park noisy and unprofessional.
If good management is practiced, tenants’ satisfaction will increase. And long living tenants pay their rent in time.
Hence, by enhancing the look and the management of your park, you are directly boosting your cashflow.
Bonus Tip: Work with a Reliable Lender
Sometimes, you need funds to make improvements. Maybe you want to buy used homes to fill lots. Or you want to install laundry machines or fix roads.
In that case, working with a direct private lender like Loan Locker can help.
Loan Locker is based in Tampa, Florida. We are a direct lender with access to our own funds. This means we can provide fast and flexible funding without delays. No middlemen. No waiting. Just real capital—when you need it.
If you are looking to boost your mobile home park cashflow, the right loan at the right time can make a big difference.
Final Thoughts: Mobile Home Park Cashflow
To sum up, increasing mobile home park cashflow is not hard. It just takes smart planning and action. So, let’s review the 5 strategies:
- Raise rent carefully if your prices are below market.
- Fill empty lots by bringing in homes or offering move-in deals.
- Cut costs by reducing utility and maintenance expenses.
- Add extra income through laundry, storage, and other small services.
- Improve management and appearance to attract and keep great tenants.
Additionally, you can learn about RV Campgrounds that go hand in hand with Mobile Home Parks and increase your income!
And remember, if you need funds to take action, Loan Locker is here to help!