Pro’s and Con’s of renting out your Mobile Home
There are many different ways to use a property. You can occupy it and make it your home base. You can use it as an office space or a second home when you're out of town so you don't have to keep constantly renting hotel rooms. Or if you don't have a use for the unit but don't want to sell it you can always rent it out. The last option is what we’re going to be talking about and show you the good and bad of it all.
Whether it's a space at Laguna Beach Trailer Park or you just have a unit for someone to use renting is an excellent option. The first great thing that comes from it, which usually gets everyone involved, is the income. Specifically renting out your mobile home is great passive income. Many times manufactured homeowners have a house on top of rented land so they use the tenant’s rent income to pay for that space, but that is not always the case. When you own the land and the unit occupying it you can make a solid paycheck by keeping someone in the home.
Another pro in the renting situation is that you can have someone take care of the mobile home during the changing seasons. Often problems come about like the mobile home sewer repair was flawed so you need a person to keep an eye on it or the porch starts to get old and needs fixing or refinishing. Many landlords put it in the contract to keep the property in working order in exchange for cheaper living. So those costs of keeping the unit fixed year round can be cut down or resolved by having a person rent out the unit.
This is where we get to the cons of renting because there was bound to be some. A major problem with renting out mobile homes is retaining people. Whether it’s that they can’t keep up with payments or that they realize they can be investing in their own home and move out. Retaining tenants is a big setback for many individuals trying to fill a space.
Lastly appreciation of the unit is always up in the air. Yes, it is known that mobile homes can be an appreciating asset, but it depends on many more factors than your standard stick built home. Age, condition, and many other factors in valuing a home move differently when looking at a mobile home. You need to stay involved in the market and understand how the world of mobile homes is moving.