What should I check before buying a mobile home park?

A park with long-staying residents behaves more like a small community than a typical business. Income is steady when things go well, but the buyer inherits a set of promises made to residents and a set of systems that may be old. Your checks should cover the money, the infrastructure and the paperwork, in that order. Use your professionals for the parts that need their training.

The rent roll and what residents actually pay

Ask for the rent roll for each lot and match it to bank deposits across a full year. Look for lots that pay late, lots in arrears and lots standing empty. Ask how rent has been adjusted over time and whether the seller kept written records of each change. A clean match between roll and deposits is the starting point for everything else, and your accountant can confirm it.

Homes the park owns

Find out whether the park owns any homes and rents them out. Those homes bring repairs, insurance and a different relationship with the occupant. Ask for a list with the condition and income of each, and check that the books treat them separately from lot rent. Some buyers want that business; others prefer a park where residents own every home. Decide which suits you before you commit time.

Water, sewer, roads and power

If the park runs its own water, sewer or roads, you take on the cost of keeping them working. Ask for maintenance records, inspection reports, repair history and any orders from an authority. Walk the park with a qualified inspector or engineer. Deferred work is a common source of surprises, so ask the seller to list every repair they have put off.

Resident agreements and records

Read the agreement each resident signed, along with park rules and any notices given. These documents shape what you can change and how. Rules governing residents and rent are set by law, so ask your lawyer to review them and tell you what applies. Pair this with a check of the seller’s financials.