Perhaps you bought a mobile home as a second home but no longer get the chance to use it. Then again, maybe your circumstances have changed and, even though you bought a manufactured home as your permanent housing unit, you don’t live in it anymore. Regardless, if you rent out your manufactured house, you could have another source of income. Save up for something fantastic, use it as a bit of disposable income, or what have you.
Whether you’re making an initial investment and plan to use the manufactured home strictly as a rental property, are just renting it out temporarily, or if you don’t need it anymore and rent it for a bit of extra income, the following information should be helpful.
Where There Is an Upside, There Is Usually a Downside
Let’s take a look at some of the pros and cons when renting your manufactured home to someone else.
- If you’re not careful, and even if you are, you may end up with undesirable residents. Not everyone takes care of a rental the same way they would take care of their own home. Worse yet is if they wouldn’t take care of their own home either, they’re certainly not going to take good care of your rental. Do all you can to screen tenants, collect a sizable security deposit, and keep an eye on your property if possible.
- Unfortunately, just like when you drive a new car off the lot, your manufactured home depreciates quickly. Taking excellent care of it is your best protection against unnecessary depreciation. There are also strong ROI upgrades that can be made to an older manufactured home to increase its value before selling.
- Back on the subject of renters, even if they take care of the property, they may not always pay on time. Again, do a background check including credit rating to give yourself a better chance at landing a good tenant.
- Renting it out is far preferable to paying to move it. Price tags of thousands of dollars can go along with moving a “mobile” home. If it has been permanently secured onto a foundation, renting it out – where it stands – is obviously a better option.
- If you get the right tenant, your mobile home may be better cared for than if it were left vacant. This way, you will at least have someone to alert you when something needs repair. If you’re even more fortunate, you may rent to a handyman who doesn’t mind doing a few of the repairs (as long as they’re done right and to code) for a bit of a reduction on their rent.
- The disposable income we referred to earlier – that’s one of the best “pros” where renting out your manufactured home is concerned. Who couldn’t use some extra money coming in every month?
Should You Rent Out Your Manufactured Home?
When trying to decide as to whether you should rent out your mobile home, keep in mind all of the above-stated considerations. Remember, as well, that if the mobile home is located in a mobile home community, there are rules that need to be adhered to by your tenants. In addition to the occasional late rent and possible property damage that can result from renting out your mobile home, you might run into trouble with the mobile home community if your tenants are rowdy, messy, rude, or breaking the rules and regulations that are in place.
Remember, however, when all goes well, renting out a mobile home you’re not using can be a fantastic opportunity for an extra monthly income. So attractive is the idea of purchasing a manufactured home for nothing more than a rental property, some individuals not only own one, but several. If done right, and with a little bit of luck on your side, it can be a lucrative venture.
Note: For both your protection and your tenant’s, make sure you insure the rental property and insist your renters purchase renter’s insurance. Make it part of your lease.
Also included in your lease should be the following:
- If it’s okay for the tenant to make alterations
- How long the tenancy will last and how much notice must be given by either party
- Who is responsible for carrying out repairs and paying any related costs
- Service charges (i.e., water, gas, electricity, Internet, etc.)
- Rent (how much, what it covers, and when it’s due)