The mobile-home-park due-diligence checklist
The rent roll is where the surprises hide. Before you close on a park, verify the money, the infrastructure, and the paper. Here's the short list experienced buyers run.
The rent roll, line by line
Ask for actuals, not the pro forma. Who's actually paying, who's months behind, which lots are park-owned homes vs. tenant-owned, and how much of the "income" is really uncollected. A live map of who's paid tells you more in a minute than a spreadsheet does in an hour.
Utilities and metering
Is water master-metered or submetered? Who pays for sewer, trash, and common-area electric? A master meter with no submeters is a recurring cost you'll inherit, and an opportunity if you meter it.
Permits and the paper
- Current operating permits and any open code violations
- Lot leases and park rules, and whether they're enforceable
- Any rent-control or manufactured-housing notice rules in the jurisdiction
Bottom line: verify the income you're buying and the costs you're inheriting. The gap between the pro forma and the actuals is your negotiating room.
This is general information, not legal or financial advice. Confirm the specifics with a local attorney and your accountant before you close.
Lot Sidekick loads your rent roll for you, so you see who is really paying on a live map before your first billing cycle. Send your spreadsheet and I'll set up your park, or see the live demo, or call (425) 405-0734.