Top Systems Mobile Home Park Investors Need to Set Up
What systems can help mobile home park investors get more out of their investments?
Systems are not only essential for maximizing the profitability of investments and minimizing risk, they also hold the power to make the entire process of acquiring and holding mobile home park investment less stressful, and more enjoyable. So in what areas can, and should real estate investors create systems?
Systems should be created, or tools adopted for every stage of investing in mobile home parks from acquisition, though daily property management, and exit. This may appear most critical for those investing out of state, but can be just as beneficial for those investing right down the street in their home towns.
Upfront Systems for Superior Acquisitions
Systems for Sourcing Properties
Technology and access to more information has made investing out of area easier than ever. However, having a full map of mobile home park investment opportunities also requires systems in order to hone in and qualify the best choices. Otherwise you may spend all of your time searching, and never actually invest. The search process can be automated by setting up listing alerts, developing referral partners, and recruiting property scouts. This also needs to include a screening process or set of criteria which only serves up the mobile home park opportunities which meet your investment criteria.
Preliminary Evaluation & Due Diligence
Before making offers, and certainly before closing on acquisitions investors need to conduct thorough due diligence. You don’t want to put deposits on the line, strain relationships with financiers, or burn your earnings with inspection flights out to properties that don’t end up being viable acquisitions. To avoid this get the right tools and put systems in place to vet potential mobile home park buys. This certainly includes a solid checklist, and maybe even a team member to work it. This phase should also include incorporating tools like automated valuation models (AVMs), and inspections which can deliver accurate details about the property remotely, and more.
Property Inspections & Monitoring
Property inspections don’t end once you acquire a mobile home park. Today’s savviest real estate investors use a variety of tools and apps to constantly monitor their properties. Mobile property management apps can empower investors to make smart and accurate decisions with real time updates on property condition. Easy to read reports can help to instantly identify leaks and waste which cost money and could be causing other property damage.
Rent collection is one of the most critical areas in which systems are needed. Door to door rent collection is not only costly in terms of labor, but fraught with risk and liability too. There is no reason that tenants can’t pay online today. This provides accuracy, efficiency, convenience, increased profitability, and decreases risk of loss.
This principle rolls over to all bookkeeping. If you have hired a professional third party property management company they will have good software and provide access to real time data, or at least simple to read reports. This maximizes monthly cash flow, identifies areas for improvement and can make a big difference at tax time.
Your mobile home park performance is going to be directly linked to your tenants. While the barriers to entry are normally extremely low for renting in a mobile home park, where legal, investors may want to have some boundaries and criteria for qualifying tenants. For example; ruling out sex offenders, and those with constantly recurring evictions.
Maintenance Work Flow
This should be self-explanatory. Having systems for processing maintenance needs and repair requests, can ensure efficient and effective processes, while eliminating waste, and adding great documentation for reducing liability.
Smart mobile home park investors should have systems in place for identifying the best moment to sale, and raise the rents. Don’t miss out. Also know how you’ll sell when the moment arises. Will you have your own marketing system, or have you identified and qualified a local Realtor who will handle your dispositions for you?