By determining in advance which features their lot will need room to add and which manufacturer’s requirements will need to be met, a buyer can find a manufactured home site that more closely suits their individual needs.
Manufactured Home Size and Pricing
Finally, the bottom line: How much does the size of a manufactured home influence its price?
As you might expect, more square footage means a higher price, although the correlation isn’t always perfect. Double wide and triple wide manufactured homes almost always come at a higher price point than single wide homes but many factors such as amenities and features can figure prominently into the price of a manufactured or mobile home. For example, let’s take a look at some cost numbers around the average manufactured home. When planning a purchase, it’s important to remember that this average price can be considerably higher if the buyer chooses to add on valuable amenities and extras, such as:
Manufactured home prices also tend to vary by region. Manufactured homes in the South tend to be slightly less expensive than manufactured homes in the West. And for permanently affixed manufactured homes, you’ll deal with all of the usual factors of a normal real estate market, such as surrounding property values.
Understanding the Ins and Outs of Mobile Home Lot Rent
More and more people each day want to buy a mobile home or manufactured home. Homes made in a factory are loaded with new technologies. They’re energy-efficient, and they can be purchased quickly at a fraction of the cost for stick-built homes.
When it comes to buying or renting a home, many frequently asked questions revolve around the topic of mobile home lot rent or lot leases.
This article will explain what lot rent is, what it means, why it matters and how much you might expect to pay.
What is Lot Rent?
Lot rent is a rental/lease contract on a parcel or “lot” of land. Every month, rent is paid to the property owner where a mobile home is located. Often the homeowner will get a loan for a mobile home that pays for the home itself, but not the land it will sit on. For those who want to become a resident of a mobile home park, or manufactured home community, a monthly lot rent payment should be expected.
Manufactured home communities generally are for-profit businesses. They provide a service to residents who own the home, but not the land. In other words, the property owner provides leased land for a fee.
What Does it Pay For?
Utilities
Many land-lease community owners roll monthly utility payments and other services into the lot rent. If you don’t pay a water bill, it’s likely because the water for the park is included. A good question to ask a community manager is “What is included in my lot rent?”
Amenities
Other amenities that may be included are garbage pickup, cable TV, internet access or other similar services.
General Maintenance / Upkeep
A manufactured home community, like any other residential development, requires attention. The lawn needs to be mowed or the snow removed, as well. And then there’s general maintenance on facilities, such as a clubhouse, pool, or dog park.
Infrastructure Upgrades
In addition, any property owner needs to keep a fund for infrastructure upgrades. This is for heavier maintenance. Good examples are repair or replacement of roads, water and sanitation pipes, front gates, and fencing.
Who Collects Lot Rent?
A community manager will be the one to collect. Many times, the payment simply is sent to the manager’s office. However, other times a community operator might ask that lot rent is sent to another address.
How Much Does Lot Rent Cost?
The amount of lot rent a resident pays will vary depending on the market where the homes are. If you live in a big city, like Houston, Chicago, Los Angeles, or Orlando, where housing is at a premium, you can expect to pay more than residents in smaller cities or rural areas.
Lot rent may also go up depending on the type of mobile home community you live in, regardless of where the community is located. If there are a lot of amenities, or high-price amenities, such as a clubhouse, pool, walking trails, workout facilities and such, you can expect to pay more.
The following chart is an overview of the average lot rents in different markets throughout the country.
Does Lot Rent Cover Property Taxes?
Yes. The community owner has to pay taxes on the property, so part of any resident’s monthly lot rent will go toward property taxes.
Can I Claim Mobile Home Lot Rent on My Taxes?
Yes, lot rent on a mobile home is tax deductible – your monthly payments can be submitted on your state income tax return. The expected refund will vary from state to state. However, most states view mobile home lot rent as a form of property tax payment that can be reimbursed.
Do All Mobile Homes Have Lot Rent?
No, not every mobile home will have lot rent. It is most often an agreement between the owner of the home and the owner of the property where the home is located.
However, not every manufactured home community resident pay lot rent. Residents who rent a home will pay lot rent within the monthly home rental agreement. In other words, most often there is no specified lot rent for a home that is owned and rented by the community or park.
Additionally, most residents with homes on private land will not pay separately for lot rent. This is for a number of reasons. If you own the manufactured home and the land, you’re already paying that expense, clearly. If someone you know owns the land, like a family member or friend, you may not have to pay lot rent. And like in communities, if you rent a home on private land, any land-lease agreement would be incorporated into the general rent payment.
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