Saturday, 30 May 2020

Top benefits of investing into trailer parks

Written by Josh Mishin Posted On Thursday, 02 April 2020 10:51

Are you aware that around 5.6% of the entire United States’ population, which is close to 18 million people, reside in mobile homes? Considering their affordability, good returns and low maintenance costs, the real estate investment world is rapidly taking notice of the opportunities lying in the trailer park space.

Before delving into the benefits of investing into trailer parks that house these mobile homes, it’s important to learn a bit about their operation. Normally, the owners of trailer parks rent out small portions of land to the interested people. Investors usually buy the entire trailer parks and then lease out each one of these portions to people who either own or rent their mobile home.

These trailer parks provide the low wage earning population of the US with affordable places to stay, and also provide a reliable income source to the owners. Not only are these parks in great demand nowadays, their returns are also very impressive. It’s not without reason that there is a billion-dollar empire created with such mobile homes in the US. Let’s now look at some of the top benefits of investing into such trailer parks.



Low per unit cost

These trailer parks enable you to invest into more number of housing units for comparatively lesser money. In fact, it’s the lowest per unit cost in the entire real estate segment. Majority of the trailer park owners don’t own these units, but only the land these units are parked on. It implies that the investment cost is normally much lesser, no matter how many mobile housing units are parked in a trailer park.

Low risk

There’s not much risk involved in trailer park investment. The more the number of tenants in a trailer park, the lesser is the risk (as it spreads out). Whenever someone owns a large number of mobile home units, the expenses like eviction, maintenance and the random kinds get spread over the big portfolio. It’s one of the main reasons why we see a large number of trailer park millionaires in the USA today.

Low maintenance and repairs cost

What’s best about mobile home parks is that they require hardly any involvement, and the repairs are very affordable. It’s the mobile home owner who is responsible for repairs, upgrades and maintenance work carried out in their unit, and not the trailer park owner. The responsibility of the park owner is only to maintain the park overall. The cost of doing that is far lesser than money normally needed for the upkeep of an apartment.


Good demand

As highlighted earlier, mobile home parks are in great demand in the US. However, the newer ones aren’t getting developed because of the zoning changes made by the government. This implies that the target market is constantly on the lookout for well-managed trailer parks, as everyone needs affordable housing in parks that are taken good care of.

In addition, more and more baby boomers earning fixed incomes are retiring from their jobs, with hardly any savings in their accounts. Mobile homes serve as an excellent solution for them and fills up the deficit existing in the affordable housing segment.


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