Raise Rents In This Economy? In a word …

February 26th, 2011 by michael_power

Q.   “Are any land lease community owners/managers concerned about raising rent in this kind of economy/housing market? In AZ, a hard hit state, I notice park rents still on the rise…”  Question posted on Linked In Land Lease Professional’s  Group

A.  From Michael Power

In a word, ….   “Depends”  . ….   One of the axioms that I learned early on in my R. E. career is this.  “All real estate markets are LOCAl.”  Of course there are some broad brush rules of thumbs or assumptions that apply and the odd exception.

Did you know that although Nevada has been hit the hardest in this real estate crash. A bigger drop in home values and job loss than even Michigan. Interestingly, Nevada still had significant population growth over the real estate down cycle. You think people would have migrated out of the state?  Go fiqure.

So even with the overall MH Industry and economy being in decline if you buy or own a L.L. Community and the rent is below market you can raise it. If you add value to a community by dramatically improving curb appeal including zero tolerance on the enforcement of resident policies (no junk, clutter, crime or noise) then you will be able to raise rent. If you are in a localality where market rents are hovering below their potential you can raise rent. For example. Your markets rents are in the $150 range and 30 minutes away they are at $250, then you can raise rent. What is the local affordability index? There is a ceiling in every rental cateqory whether Apt.’s, SF Homes, Mobile Home Lots and Mobile Homes with Lot Rent.  Find those ceilings’ in your market (s) and identify the quality pockets within them.  The quality pockets will always support a little higher rent level.

If you are a run of the mill operator and that is your operating plan then hover at slightly below market rents.  My suggestion is to look for opportunities to provide added value to residents and then expect to be rewarded for that value. You take that reward by raising rents. 

If you have Park Owned Mobile  Homes that you rent or sell on a lease own option you will need to know what your competing local park pricing is.  Other parks’ asking, combined lot and home payment total begins to give you some ceiling price you can charge for park homes.  Remember you can mark up (or down)  to a certain degree based on the desirability of your location and the quality of your community. 

Today you have to look more closely and the rental costs of the stick built single family housing market.  With the drop in home prices some SF Homes can rent at or near  the costs of some parks lot rent only.  If that is the case and you have vacant lots to fill and homes to sell you will have price your combined lot and home payment at similar levels.  Look at it this way. If the the lot is ‘homeless’ your income is zero. You may have to use your total payment to retire the debt on the home 1st with no lot rent or some combination of that. Once the home’s debt is retired then keep the payment the same with all of it being applied to lot rent again. (Any questions or for further explanation send me an email.) You have got to get those vacant lots occupied ASAP for the overall financil health of your LL community (MH Park).

Plan, implement and execute and then you raise rent.  If you can deliver on execution then don’t be worried about rasing a ‘few eyebrows’.  And no, it is not just about the economy. Find the “current” ceiling in your local market and then earn the right to exceed it.

Michael Power

Michael@MobileHomeParkDepot.com
BusinessCoach@YourBoardMember.com

LinkedIn: http://www.linkedin.com/in/mobilehomeparkdepot
www.MobileHomeParkDepot.com
“Reinventing MHC-GOLD NationWide”
“Finding Discount Homes and Investors To Fund Them”

Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation.

Need systems to help find discount “Good Used Mobile Homes” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.







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Why Lenders Have Fled The MH Land Lease Industry

January 14th, 2011 by michael_power

Here is another side to why lenders have fled our industry.

Lenders are “RISK ADVERSE” ! ! !  Do You Blame Them?

Recently I went to Daytona Beach, FL and I saw two car dealerships with “Time’s Square Location’s”. Alas, there was nary a car on either lot. Not closed due to a lack of demand, or the price of the car’s but due to lack of financing for the masses. There is a pent up demand for new cars in this country but America is adjusting to the higher down payments and credit scores now needed to buy cars.

Our industry has always been dependent on the most sub of sub prime credit buyers to pump up the sales. So if we had quality homes at the old $20,0000 pricing their would still not be Dealers nor homes flooding into our communities. Financing drives our country, our industry and our occupancy.

Here is another problem that contributed to the high repo rates experienced in our communities. People with little to no discretionairy income buy these homes which traditionally have the lowest quality, water heaters, HVAC systems, fictures for sinks, commodes, showers, doors, etc. . So 3 years after homes are in our communities you start to have problems when occupants cannot afford to fix things. Now you have rotting floors due to water leaks, moisture issues rotting window sills and floors.

Unfortunately as these things are let go and accumulate the homes become less desireable, less habitable and with no funds, occupants abandon them. If manufacturers would change a few things in my opinion it should be installing high quality, long lasting components into these homes. Of course for Pete’s sake put the highest R- Factor components into these homes. If an occupant cannot pay a utility bill how can they make the home and lot payment?

I recommend community owners selling homes on contract address this issue by offering funding to their buyers for those major components in a home. In other words after a 1st 90 day warrantee period if a major unit goes out that the community owner/seller fund the repair and add it to the loan balance. I think that we can lower our turnover rates if we offer this as well as address another major issue.

When I talk with George Allen, GFA Management and other long term MH professionals and community owners everyone agrees that many family type communities have “Sub-Standard” curb appeal. An owner’s grasp on how to provide a clean, quiet, safe, crime and drug free community goes a long way to lowering the turnover in the now “Park Owned Home Sales”.

Many state associations have commissioned studies over the years to identify how to best spend money to upgrade the image of ‘maufactured home communities and MH homes’ in the eyes of the public. Some slick TV campaign or glossy print media Ad is wasted when someone drives through their closest manufactured home community and they see ‘Jerry Springer’s’ remote brodcasting crew shooting for an upcoming program. A little harsh on my part?

Yes and in many cases No. Unfortunately state association’s have been trying to get community owners to join and participate in programs with very liitle success. When I was on the NCMHI Park Owners Committee a few years ago I found that they had been extensively building owner mailing lists, offering programs etc. for many years. At that time we had a grand total of only ’44′ park owner members of NCMHI. It was not from lack of effort.

So my recommendation is to raise funds in every state and create slick marketing campaigns and offer FREE educational programs with lots of FREE food to community owners to get them to come out and attend programs to teach them how to clean up their communities and keep them clean. Show them how to profit by providing “Clean, Safe, Quiet and Crime Free. Michael Power. Michael@MobileHomeParkDepot.com

Check out “Industry Woes: Heads Up Or Heads In The Sand?” Click on my Blog and scroll down to that article.

Preventable Repos?? Are there further steps that you can take to slow down the turnover of your existing portflio of contract sale or rental homes?  I suggest you explore new ways to do this. Need a experienced “Strategist” to help you with additional ideas.  Contact me so we can set up a free discussion on this or any other Community Mangagement, Operational or Home Fill Up program.  Thinking of selling a property or buying more? Ask me about my “Investor-Match” programs.

Michael

Michael Power Cell: 786-361-6588

Michael@MobileHomeParkDepot.com
BusinessCoach@YourBoardMember.com

LinkedIn: http://www.linkedin.com/in/mobilehomeparkdepot
My Blog: http://www.mobilehome.com/wordpress/michael_power/

www.MobileHomeParkDepot.com
“Reinventing MHC-GOLD NationWide”
“Finding Discount Homes and Investors To Fund Them”

Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation.

Need systems to help find discount “Good Used Mobile Homes” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.







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Q. Michael, one of my colleage’s told me about your comprehensive approach to management. Will you give me an overview of what is “A Complete On-Site Manager”?

October 30th, 2010 by michael_power

The “Complete On Site Manager” System Overview

Note: Minimum “sitting inside” office hours. Manager activities are “outside” not “inside”!

Three Major On-Site Management Functions:
1. Curb Appeal:

A. Park responsibilities – common areas, vacant lots, abandoned homes = 20% impact on overall curb appeal.
B. Resident responsibilities – maintain their homes & lots = 80% impact on overall curb appeal.

2. Collections and Court for Non-payment: deposits, non-payment reminder notices, filing in court, etc.

3. Home Sales & Site Rental = more lots occupied equals less community maintenance & greater NOI.

Ø Preparation for sale:

1. Daily checking on park and abandoned homes for vandalism.
2. Scheduling onsite helpers for small cleaning & repair projects.
3. Assisting to obtain rehab quotes from contractors.
4. Inspection of completed rehab work.

Ø Showing Homes and Earning Commission $$$

1. Marketing: Ads, Banners, posting resident referral & other flyers, flea markets, maintaining signage, etc.
2. Taking ad calls and scheduling showings.
3. Showing homes and submitting applications.

The “System” Manages the Three Primary Functions of Community Management

Note: this system is designed to work without creating a hostile environment. With minimal direction from the owner/supervisor, the “Community Management System” manages the “on-site manager’s” activities and projects.

The Community Management System also includes:
1. Operations question/response form – for owner/supervisor feedback on issues.
2. Resident question/response form – for owner/supervisor feedback on issues.
3. Monthly and weekly calendars – a checklist to guide the manager and maintenance activities.
4. A full reporting system for compliance going to the off-site owner/operating company

1. Curb Appeal issues addressed in these binders: (Goal Is 100% Curb Appeal)

Park Responsibilities:
1. Manager Daily Planner – keeps the manager in action without constant owner/supervision.
2. Manager Weekly Maintenance Tracking – manages curb appeal issues.
3. Binder for Maintenance and Lawn Care Person – creates a team approach between the manager and maint. staff.
4. Resident Helper Recruiting Flyers – the “just in time” concept to cutting maintenance costs.
5. Archive Binder for Resident Helper Responses – a tool to build your human resources.
6. Operating Forms – Petty Cash, Work Orders, Human Resources forms.
7. Archive Binder for Completed Petty Cash and Work Orders – no more lost forms!
8. Repair and Improvement Projects and Pictures – create a template as a guide for 100% curb appeal.

Resident Responsibilities:
9. Resident Policies and Violation Notices – a process that moves Residents into action towards 100% curb appeal.
10. Archive Binder for Resident Data Forms and Home Pictures – tracks progress towards 100% curb appeal.

2. Collection issues addressed in these binders: (Goal Is 100% Collection in current month due.)

1. Rent Collections and Non-Payment Evictions – a process to collect virtually 100% of rent payments every month.
2. Archive Binder for Rent Rolls and Collection Reports – tracking and cross-checking all non-payment issues.

3. Sales issues addressed in these binders: (POH = Park Owned Home)

1. POH Resale Homes Inventory Tracking
2. POH Marketing Resources
POH New Resident Forms and Procedures

————————————————————————————————-        

Have questions on any part of Managing your community or managing your manager?? Please email me and I will be happy to share ideas and include a few forms related to your specific questions.

Michael
 
Michael Power    
Michael@MobileHomeParkDepot.com
BusinessCoach@YourBoardMember.com
LinkedIn:  http://www.linkedin.com/in/mobilehomeparkdepot  
My Blog:   http://www.mobilehome.com/wordpress/michael_power/ 
 
www.MobileHomeParkDepot.com
www.BestHomeVestor.com
“Reinventing MHC-GOLD NationWide”  
 
Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation. 

Need systems to help find discount “Good Used Mobile Homes but Dirt Cheap” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.

 Email:   Michael@MobileHomeParkDepot.com





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Quick question on getting a home in my Park, SOLD with a LOW Rehab Budget.

October 16th, 2010 by michael_power

TO READER:  HAVE QUESTIONS EMAIL THEM TO:  Michael@MobileHomeParkDepot.com 

Below a recent questions from a park owner.
 
Hi Michael,
 
Quick question for you on getting a home in my Park, Sold with LOW Rehab Budget.
 
I  have two older 2 bedroom homes that I gave to my manager to fix up in payment for her services during the last year when we took it back from the old buyer and I had no money to pay her. Can you give us some tips on the best way to make these look better and get them sold. I hoped that next month there is enough money to buy paint but what might be good colours for it, I have advised them to plant some shrubs and flowers around it leaving a space around the skirting for access and just put some pavers down then plant shrubs and flowers in front of those. If you have any tips that will help them get this sold on rent to own or just rented to some good people let us know. They don’t have much time with their full time jobs and the park and little extra money but they are hard working and follow all suggestions I give. Thanks again,  Bob
 
Bob,
Your Job No 1 is to set a goal to have each home rehabbed, done and sold in 2 weeks or less. Anything more than this is a prescription for failure.
 
Down and dirty, short and sweet these ARE the tricks that work!
 
Put a sign in the window NOW. You never know when someone will come by and love the lot location or whatever. If they pass by and don’t know it is for sale then it is a NO Sale anyway.
 
Place a small ad in the Paper NOW.  LOW down payment, job is your credit, instant approval, move in now, special ending soon and FSBO.  If selling on contract you keep the total price High and the down payment Low.  Make the phone ring and try to sell to 2 adults both with jobs and 1 or 2 kids or retired people. These are your most stable tenants. 
 
If you find that prospect then get the first months payment and, if necessary, give them a voucher credit of $1,000 so they move in with equity even though they do not have the down payment.  Security is in “people” not money.  This is a financial decision so you measure “risk”.  The more risky the greater the down payment you need.  You must not violate Fair Housing regulations nor discriminate against, race, creed, religion, gender, familial statues, etc. (Review the Fair Housing code on this). Keep in mind that approving, disapproving or the amount of down payment is a factor of your “perceived” risk as long as it is not based on a protected class.
 
If you have a NOW buyer then your people must be prepared to drop everything and get home ready NOW.
 
1. Cut grass and keep cut “weekly” and the litter out of the yard “daily”.
2. Do NOT spend time, energy or $$$ planting flowers shrubs or putting down paving stones, etc. Again, cut the grass weekly and keep it cut, etc..
3. Concentrate on Street side of house first and paint the front a uniform matching color to whatever is on there now (Best is Off White or light Tan. I say that as from the picture the home looks like someone started painting and stopped. Buy Sherwin Williams paint and highest quality. Ask for and get the “Contractor” price as “you are a real estate investor” and plan on buying more. Contractor prices about 50% off retail. Retail may be as high as $40 per gal. Your cost $20. Front will take one gal. High quality covers with one coat and less time.
4. Make sure the skirting/underpinning on the street visible portion of the home is uniform, straight and the panels have matching wear patterns or color. Do this by exchanging if necessary with panels from the back or less visible portion of the home. Focus on the front of the home so the skirting looks as “Uniform” as possible. It does not have to be new, just good condition and uniform and for Pete’s sake, NO holes.
5. Power wash deck or steps and add pickets with slant top cut available at Lowes, Home Depot, etc. Once pickets are up then stain entire deck with neutral shade of expensive high quality deck stain. Difference for this size of deck will only be maybe $ 10. For example $25 per gal versus $15 per gal. More expensive will give more uniform cover.
6. Do initial DEEP cleaning of entire home including spot cleaning of walls. You can touch up when painting is done (if needed) but this begins to give you the idea of the homes true potential. If you do the deep cleaning FIRST then if you get a prospect when you are part way through rehab they WILL buy the home!
7. Stain the frames around doors where necessary if they look pretty banged up. Needs to be uniform NOT perfect.
8. Paint any walls or doors to uniform neutral color AS needed to be uniform. Paint on walls needs to be fresh looking and uniform and new looking but not necessarily NEW.
9. When a buyer walks in the front door and looks around everything they see should be uniform and fresh. Fresh looking is important, not new.
10. Put NEW blinds in EVERY WINDOW in the house. About $5 per window. Cheapest standard size. Nothing more. Do NOT skip any window. ALL new. You will be amazed how different a home looks with new inexpensive blinds. 12 windows $65. Big BANG for little bucks.
11. Vent grates in floor are about $6 each so put all new in entrance area/kitchen/living room. Rest of the house needs to look new or replace with new.
12. Have carpet PROFESSIONALLY cleaned truck mounted. If that is not going to be sufficient then strip carpet and padding out before starting the inside. Smell is # 1 deterrent to selling a home. If carpet looks new but former occupants had urinating pets then you need to REPLACE. If carpet cleaner tell you they can remove heavy pet odors then get a new carpet cleaner. Urine goes into the carpet AND floor. If you cover up odor then it WILL come back within a month of people being in home. You WILL lose that new tenant as soon as they find another place to live.
NOTE: If you need to replace carpet the call someone who sells to landlords and tenants. Have them order you the 13′ wide. It is worth it as now you do not need seams and any hand man can lay. No expensive carpet installer. AND …. bleach floor the night before you put the pad and carpet down. Bleach will kill the odor smell.
13. Buy air freshener such as Glade and leave one somewhere in the kitchen and one on each end of house.
14. When ever working at house, open every window and door and let fresh air in.  (15 minutes before working inside)
15. Clean INSIDE the vents in the floor as far as you can reach. Vacuum and spray with cleaner and hand wipe inside. Spray air freshener into every vent when done.
16. Deep cleaning/ white glove cleaning of windows, counters, window frames, sinks, toilets, shower tubs and stalls is the most valuable thing you can do. It takes about 15 hours of labor to deep clean a mobile home. If someone tells you it will take less then they are not doing DEEP cleaning. Cutting corners here is equivalent to cutting your throat. If there is a stove or fridge then nothing less than spotless is acceptable.
Approx. total cost with paint but without new carpet. $500 to $600 without labor. Your manager is providing the “sweat” equity since you gave them the home.  Add in any cost for electric, plumbing, HVAC, new windows or doors.  New 13′ wide carpet and pad at wholesale about $650.  
How do I know. I have bought, rehabbed and sold over 700 homes in my communities. This is what I learned over time, WORKS.
If the people do not want to do it then have them give you back the title and you can pay them later. This is a nice home and should have been sold and paying lot rent and a home payment a long time ago.
 
Michael
 
Michael Power    Cell: 786-361-6588
My Blog:   http://www.mobilehome.com/wordpress/michael_power/ 
“Reinventing MHC-GOLD NationWide”  
 
Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation. 

Need systems to help find discount “Good Used Mobile Homes but Dirt Cheap” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.

 Email:   Michael@MobileHomeParkDepot.com





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MHC/P Owner and Zillionarie Sam Zell: “Waves of Distressed ……”

September 25th, 2010 by michael_power

September 20, 2010…

Sam Zell: Wave Of Distressed Assets Won’t Come.

Investors waiting for waves of distressed real estate assets to hit the market may be waiting indefinitely, according to billionaire real estate mogul Sam Zell.

Speaking at the BMO Capital Markets Conference in Chicago , Zell addressed a crowd of commercial real estate executives on issues ranging from global investment opportunities to the current political environment in the U.S.

When the economy was hit hard in 2008 many prognosticated that owners in the commercial real estate market would be forced to sell distressed properties at a rate that could be compared to the market of the early 1990s.

However, as we sit in September of 2010, this scenario has not played out and Zell does not see it happening anytime soon.

“With interest rates so low the banking industry has been inadvertently encouraged to hold onto assets,” he said. “The cost to carry interest is very low.”

Nationwide, new construction is historically low, keeping the supply side in check. As demand slowly returns and supply stays the same, owners will begin to see relief. If interest rates continue to remain low, banks will wait for this scenario to play out with little penalty.
There is also an imbalance of supply and demand in the real estate investment market, where a considerable amount of capital is targeting a small amount of quality assets, Zell said.

“As long as supply remains low the performance of high quality assets will continue upward.”

In Chicago, it would take $45 per square foot in rent to justify a new building, while most buildings are around $28 per square foot right now, he added.

Zell said that investment in core CBD property in the U.S. might be good for long-term investment engines like pension funds, but for many investors the returns will not be as good as they could be in other parts of the world. He has become bullish on emerging markets, especially Brazil, which he calls the “number one place to invest in the world.”
“The engine has changed in this recession,” said Zell. “It used to be that the U.S. got a cold and the rest of the world got sick. That is not the case anymore. In this last cycle the U.S. suffered, but places like Brazil, China, and India thrived.”

Zell is now the second largest homebuilder in the Brazilian market. He has had good experiences developing in China as well, but overall does not consider it as safe of an environment as Brazil. In China, the laws of supply and demand don’t necessarily apply as the Chinese government has overarching control of business transactions, making it too unpredictable of a market.

On the home front, Zell is less than enthused with the current political environment and does not hide that he isn’t pleased with the current resident at 1600 Pennsylvania Avenue, calling President Obama the “most anti-business president we have ever had.”
When referring to the upcoming November elections, Zell said that they are “the most important elections of my lifetime.” “Control by one party has shown that absolute power corrupts absolutely,” said Zell. “There are no checks in the current system and we need balance. I think the business community sees this election as a stop to uncontrolled spending and regulation. If we don’t regain balance, I think it will cost this country growth.”

As far as U.S.-based real estate investments, Zell’s firm Equity Group Investments has most recently made purchases in the hotel industry. The firm owns 18% of Starwood Hotels, an investment that seems to be on the cusp of paying off.

“Demand is there for hotels,” said Zell. “They are not building any more hotels. Hotels were hurt on revpar, but occupancy is back up. When steady occupancy returns revpar will go back up.” ( revpar-revenue per available per room) ( credit m.thomton mren)

Michael

Michael Power
BusinessCoach@YourBoardMember.com
Michael@MobileHomeParkDepot.com

LinkedIn: http://www.linkedin.com/in/mobilehomeparkdepot
My Blog: http://www.mobilehome.com/wordpress/michael_power/

www.MobileHomeParkDepot.com
“Reinventing MHC-GOLD NationWide”

Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation.

Need systems to help find discount “Good Used Mobile Homes” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.







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This Trulia Study Illustrates the Disappearing ‘American Dream’ …

August 22nd, 2010 by michael_power

 
There is every indication that affordable housing and rental housing will be the place to make money for the next several years. 
 
Michael Power 

Web Site:     www.MobileHomeParkDepot.com

This Trulia Study Illustrates the Disappering  ’American Dream’.   

Government and industry experts agree, consumer interest in buying homes is an essential element of a healthy real estate market, and absorption of today’s bloated housing supply is critical to recovery. These market fundamentals, though, are moving farther and farther out of reach as the American Dream of homeownership fades into the background for many.
 
A new study from real estate data provider Trulia found that one out of four renters do not plan on buying a home — ever. Of those renters who do see a home purchase in their future, 68 percent said it would be more than two years before they make that investment.
Trulia says this reluctance to buy could potentially drag out the real estate market’s recovery timeline further than many have predicted and the domino effect of such a delay could pose an enormous threat to the nation’s overall economic health.
 
“Renters converting into buyers are crucial to turning around the housing slump, but the current economic crisis is causing people to become very hesitant to get off the fence and buy a home,” commented Pete Flint, CEO of Trulia.
Flint says the government needs to turn its focus to job creation and job security, in addition to stemming foreclosures, in order to restore the American public’s confidence in both the real estate market and the economy.
According to Trulia’s study, 79 percent of the renters who do plan to become homeowners said a change in their financial situation could motivate them to buy a home within the next 12 months.
 
The circumstantial changes cited most frequently as the “tipping factors” that would make renters decide to buy were: being able to save enough money for a downpayment, getting a new job, or receiving a promotion or a raise.
Trulia says its survey also revealed that “the era of the McMansion is over.” Americans are veering away from the large, sprawling homes that had grown popular before the recession.
 
Those that still harbor homeownership as part of their American Dream expressed a preference for smaller homes, with only 9 percent saying their ideal home size is more than 3,200 square feet– the same ratio that said they’d like their home to be between 800 and 1,400 square feet. Fifty-five percent of Americans would prefer a home between 1,401 and 2,600 square feet.  Thanks to Carrie Bay
 
No financing, no decent paying jobs, no recovery
AFFORDABLE HOUSING REVIVAL?
 
IF WE FILL LOTS WITH HOMES & PROVIDE FINANCING … THEY WILL COME!!!
 
Michael Power   

BusinessCoach@YourBoardMember.com

LinkedIn:  http://www.linkedin.com/in/mobilehomeparkdepot

www.MobileHomeParkDepot.com

“Reinventing MHC-GOLD NationWide” 

 Michael Power: 22 years in Manufactured Housing Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation. 

Need systems to help find discount “Good Used Mobile Homes” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.

EmailMichael@MobileHomeParkDepot.com







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The Mother of All “Community Policies”

August 14th, 2010 by michael_power

Over the years  I accepted that most residents ‘tossed and lost’ those little booklets we used to hand out with pages and pages of Community Rules & Regulations”.  So I put together my well known  ”One Pager” & tossed out those booklets.

What I found is that the Resident “P & P’s did more than spell out the do’s and don’ts for the residents.  I believe that these policies also spell out for the manager what is expected of them. Whatever is in the policies I expect the manager to live by.  But one of the secrets is that I also provide the manager the tools and time table so that their task of creating  uniform compliance by residents is manageable and with predictible results.  Best of all it accomplishes this WITHOUT creating a Hostile environment for the residents or the manager.

This is the touchstone with which we create in every Community … “100% Curb Appeal.”

Each time a manager gives a notice (whether it is for a collection issue or a resident curb appeal issue) they attach a copy of the Community P & P’s and highlite that section in the policies that the notice pertains to.  This takes the “sting” out of the notice for the resident and it practically elimates the followup calls to the manager.

Now,  I have included a copy of my Community Policies below.  If you would like me to email you a copy so that you can modify for your community just send me a request to:  Michael@MobilehomeParkDepot.com . Curious about how to achieve 100% compliance from the residents?  I can help you with that also.                                                                             

        ——————- ————————

“Your Community” ”  MHC- POLICIES & GUIDELINES            Community Phone:    xxxxx

___________ is Community Manager and works from her Home/Office located at Lot # ____. Residents please call first with your questions or to schedule a personal meeting time. Please, no calls before 9:00 AM or after 6:00 PM. Except for a “scheduled” meeting with a resident, the manager’s home is a private residence and not for park business. Please note the drop box for rental payments is located between the steps and the deck at Lot # ____.

The Community Manager is the contact person for the ownership of the community. Any written notice to a resident will be enforced by the manager as specified in the notice without exception or change. Loud, vulgar or abusive confrontations with the manager or other residents will not be tolerated and a “Notice to Terminate” your lease will be issued. The manager is not to be involved in settling neighbor disputes. It is recommended that residents work out their differences in a friendly way; however, call the police, not the mgr. for police type situations. These policies include unwritten situations in best interest of the Community.

REVIEW THE  COMMUNITY GUIDELINES AND COOPERATE IN ACHIEVING THESE GOALS IN A NEIGHBORLY WAY.
RENT PAYMENT AND TENANCY: Only payment for full balances due, paid by check or money order, will be accepted (no cash). Unpaid rent as of 9 AM on the 6th of will incur a $?? Late fee and a ???-day notice to Pay or Quit will be posted. On the 17th day of each month, the manager will file in court on each resident whose lot rent is not paid in full, without exception! As long as you pay your rent and late fees and/or court costs we want you to continue to be a resident. Prior to selling your home within the community, contact the manager. Re-occupancy by unapproved individuals will result in a trespassing complaint being filed with the local Police Department & you will be required to remove the home. Tenancy is on a month-to-month term.
LAWNS: For consistency of appearance, residents are to cut grass and trim next to the underpinning on a weekly basis between Thurs. and Sat. night, as needed without reminders from the manager. It is required to cut to the road edge and to the community property line where applicable. Because they contribute to a cluttered appearance and are maintenance issues, no landscape timbers, decorative blocks, lawn ornaments or outside signs are permitted (including security signs or “For Sale” signs). Planting of small flowers and shrubs is acceptable. No open fires or burning of leaves. Residents are responsible for the pruning, cutting, and removal of trees and shrubs on their home sites. Security window stickers (max 2” x 2”) are permitted.
YARDS & DECKS ARE TO BE KEPT CLEAN AND NEAT: Lot numbers must be displayed on the front of your home. Nothing may be stored outside the home other than lawn furniture or a small BBQ grill (both well maintained). When not in use, children’s toys, bikes, garden hoses & lawn equipment must be put in a shed or out of sight behind or under the home. No clotheslines are permitted. Residents must maintain modern vinyl underpinning without holes and heat tape on water lines under homes.
PLAY EQUIPMENT: Moveable children’s play sets are permitted only if installed behind the home, out of sight from the street, and properly maintained. Basketball hoops are permitted if stored on their side and out of sight when not in use. Not permitted are trampolines, guns, firecrackers, slingshots, bows, similar or other items that are obvious safety issues.
ANIMALS: For safety and noise control, no loose & no tied pets! Animals outside the home shall be on a hand leash & attached to a “person”, not tied to a tree or deck. No pens & no doghouses. One small pet per home. No vicious breeds.
TRASH: Only household trash in small plastic bags may be placed inside the dumpsters. Please instruct your children. Once garbage comes out of a house, it is to go directly inside the dumpster, not stored outside. Clutter such as boxes, car parts, wood or other materials, household furniture, old appliances, etc. shall be removed (outside of the community) by the resident or stored in a shed or inside the home. These items are not to be placed in or near the dumpsters. ??? (Indvidual)
VEHICLES & PARKING: Park in a straight & uniform way (not haphazardly). All wheels must be on the obvious parking area, not on the grass or roadside. No semis or large trucks may enter the property or park near the entrance(s). No vehicle repairing anywhere on the premises. No go-carts, ATV’s, motorcycles, trailers, boats, etc., are allowed in the community. No parking or storage of junky -looking vehicles, vehicles without valid inspection stickers, or unused vehicles. No loud cars or music.
GARDEN HOSES: These may not remain attached to the outside spigot when not in use! Hoses are to be stored out of sight, in a shed or behind, under or inside the home. ??? (Who Pays water) ???
CONSTRUCTION AND EXTERIOR IMPROVEMENTS: Obtain written approval before beginning exterior construction or improvements; otherwise, removal of the improvements will be required. No fences, carports, canopies, etc. Satellite dishes, maximum 18 inches, are permitted only if installed behind the home and out of view. No metal sheds, TV antennas or outside newspaper boxes.
SEWER POLICY: Residents are responsible for calling their own plumber for sewer backups in the home since most problems are caused by large items or grease put into toilets and sinks. Only after you present a verifiable paid receipt from a plumber showing that your lines have been cleared from your home to the main line, will management investigate any continuing problem. It is recommended that you purchase home insurance and ask your agent to add a sewer backup ‘rider’.
NOTE TO ALL RESIDENTS: The benefit of our policies and guidelines is to continue to establish a community for residents who desire to enjoy, live and raise families in a clean, quiet and safe environment. Agree or disagree, by choosing to continue to live in this Community, you are accepting the responsibility to pay your monthly home site fees and to also follow these community policies without repeated reminders from the manager. NOTE: It is a condition of residency that “management notices” are delivered and posted, to the main entry door of each home. Any trespassing signs must not apply to delivery of notices by the manager. Payment of your rent each month acknowledges that you will abide by all policies.

If you would like me to email you a copy so that you can modify for your community just send me a request to:  Michael@MobilehomeParkDepot.com

LinkedIn:  http://www.linkedin.com/in/mobilehomeparkdepot  

My Blog:   http://www.mobilehome.com/wordpress/michael_power/

www.MobileHomeParkDepot.com

“Reinventing MHC-GOLD NationWide” 

 Michael Power: 22 years in M.F.H. Industry as a community owner/operator, creator of the the “Complete On-Site Manager” and consultant to both newer and experienced community owners, nationwide. Built based on a “franchise model concept” my systems can put manager(s) on Auto-Pilot so that the owner or the regional supervisor can focus on the critical and important issues in running your operation.

Need systems to help find discount “Good Used Mobile Homes but Dirt Cheap” to fill vacant lots, find local investors to fund them and people to live in them? Have a park that you want to sell or one you want to buy? I can help with my effective but affordable systems and on-going support.







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Industry Woes: Head Up Or Heads In The Sand?

August 7th, 2010 by michael_power

De Nile. A place, a state of mind, a state of being? (Yes, you have heard it before.)

As I sat in or outside the intensive care room at the hospital recently (accidental overdose of a loved one), I thought, this was a tough way for any one to be shocked out of their denial.  Pain medication addiction, of someone very close to me, had been difficult for me to watch also.
Alone with my thoughts I occasionally shifted into thinking of the problems in our MH Industry.  I could not help but draw a correlation between the denial of the addict and the seemingly lack of awareness or denial that I have picked up on in discussions among many community owners over the past several years. Community owners seeming unwillingness to look inward at how maybe our management styles and practices have led to the poor living conditions in many properties.  Is it not possible that some of those dower conditions that our residents live in (and move out of) have contributed to our industry being on the verge of life support?  Did we have to hit rock bottom to be shifted out of our denial and in to these new realities?

Not withstanding the region, the group, the size of the portfolio, etc. the conversations seem to gravitate to:  When will the Chattel Lenders come back, the manufactures make homes with floors that hold up to the wet conditions under them and doors and fixtures that last longer than a few short years without falling off or wearing out? When the Dealers get the financing, will they hire sales people, this time, with warm smiles AND consultative selling styles, but WITHOUT the alligator shoes and creative penning of credit apps?

Denial?  Maybe.  Seldom do I hear, collectively, community owners or operations managers discussing the poor living conditions and sub-standard quality of life that many MH Community residents (our customers) endure in large numbers, if not most, of the Family Communities around the country.  Now of course there are always the exceptions out there.  I know some of you apply good On-Site management techniques and practices that create “Clean, Quiet, Safe, Crime and Drug Free” communities to which I believe every community owner/operator should espouse.
In a recent broad-ranging, free-wheeling discussion with a national community operator, we tried to hazard a guess as to what percentage of the communities across the country were in many ways sub-standard.  You know, the obvious things such as; clutter, junk piles besides homes or on overgrown vacant lots, cars on blocks or parked haphazardly on the grass at the back of homes, etc.  Then there are the less obvious such as: parents who live in fear of the crime or drug dealers, or worse, the drugs that all too easily end up in the hands of their children.  We are talking about, “Curb Appeal” or … more truthfully, the lack thereof??
We opined (like Bill O’Reilly) that maybe 80% of the family communities around the country are poorly managed, causing these “Communities or Neighborhoods” to continue to look more like “Trailer Parks and Courts.”

As an “Industry” of community owner/operators should we stay in DENIAL and bemoan the loss of chattel financing as the Death Nell to our businesses?  Or, instead break our addiction to the “Good Old Days” of fast talking salespeople, weak lender underwriting requirements and our “lean” sub-standard on-site management practices??

Most community owners and operators are bright, intelligent and highly skilled!  But, did we focus that talent too much on acquisition and too little on delivery of “Safe, Clean, Quiet, Crime Free and Drug Free communities into which Dealers could sell and on which Chattel Lenders could make less risky loans?  In other words, could we as operators not shoulder more of the blame and therefore responsibly move forward and provide a better quality of life for our residents?

Should we consider like the auto industry setting up a “Certified Community” standard”?  Then perhaps, again the manufacturers will find lenders and bond funds for us and bring them to our doorsteps! We must emerge from our denial and prove that we are making better choices and taking the steps in recovery to deliver on our end.  “Safe, Clean, Quiet, Crime Free and Drug Free!”
Now the question begs, “How do we create these highly appealing communities with the great curb appeal?”

I hear the complaints from owner/operators about community residents and how difficult they are to manage.  After all, they are not renters, they are “Home Buyers!”  Yes, 20 years ago, I also thought the same. “What a great business! Renting land to home owners.”  However, when I was new in the business and with the help of others, I learned to shift my way of thinking.

Maybe it was because I was raised in a less affluent, blue color part of town AND yet lived in a clean, quiet and safe environment that my desire since I got into this industry has always been to re-create these conditions in our communities.
Acceptance? Yes, the next step in recovery!  Years ago I accepted that we are in the business of renting land to homebuyers who, for the most part, see themselves in transition and therefore retain their “Renter Mentality”.  When we begin managing the actual “Residents we have” rather than the “Residents we wished we had” we can then create systems to drive behavior change in our communities. Personally, I created years ago systems that accomplish just that. Systems that I used to help acquire and manage 21 communities, 3,100 home sites and more recently, over 700 community owned homes.

I was asked to speak and share my concepts and systems to a group of over 300 new and seasoned community owners and investors three years ago, at an industry function in Orlando, Florida. Afterwards, I received many requests to provide others with what I had created and help them achieve similar results.  So, I began doing just that.

The following is my response recently to a comment from one of my new clients:
Hi Mary, When you say that the people in South Alabama are “not motivated,” that may appear to be the case.

However ….. that is no different than I have heard from many of my clients over the years before we started working together and they began using my on-site management system at their communities. Whether in Ohio, Indiana, Virginia, North Carolina, Michigan, South Carolina or ‘Anywhere’ USA community owner/operators, who once thought the same, have learned otherwise using my systems and consulting.

Here is why?  I remind them of this: All things and people are affected by universal laws of physics, in this case … Newton’s Law of Inertia.  This is what you are facing in reality.  “An object in motion tends to stay in motion but conversely an object AT REST tends to STAY at rest.  We all have, from time to time, the “tendency’ to forget that there are the two parts of Newton’s Observations.
Success in management, sales and family affairs is simply (or not so simply) a matter of overcoming “Inertia.”  Without understanding these principles of inertia, we would have never put a man on the moon.  You have a tall heavy object on a launch pad and without “overcoming inertia” by applying “THRUST” there the Apollo rocket would stay.

Now the reality is that we apply different versions of “Thrust” to people than we do to rocket ships.  That’s why I created “The Complete On-Site Manager” and “Mobile Home Gold”.

Sorry, I wish I could sugar coat it but, “it is, what it is.”  You have a several choices to make.   Stay where you are at with your business, create your own ideas to generate forward movement or … you can harness the systems that I have created over the last 17 years of Community Ownership.
Here is what my systems and consulting can help you to accomplish:

Collecting 100% of the collectible rent each month, creating 100% curb appeal in your community, get your manager to manage and your maintenance person to pick up litter and cut grass, rehab homes faster and for less money, finding investors to fund homes, homes to buy at discount and of course “making the phone ring and converting callers to buyers to residents” and the hard part … “Etc.”

Mary, Instead of having your current goal to move just 5 homes per year into your community (with 50 vacancies) how about this?  Find out how many people are moving from someplace (apts., homes, etc.) to “somewhere” within a 30 or 45 minute drive of your Community each month.  Then commit to getting 25% of those moves that are happening anyway, into your community.
Using my systems you can “Create 100% curb appeal in the next 30 days in your community.”  I will help you move away from denial and into action.

Impossible?? So was getting a man on the moon!

Michael Power

To receive your free copy of my article, “Creating 100% Curb Appeal In The Next 30 Days” or for more Information on my Systems and Consulting just email a request to: Michael@MobileHomeParkDepot.com
Note:  Michael is available for consulting, turnaround or infill projects, and has available for purchase a sophisticated and comprehensive (yet turnkey) On-Site management system for putting communities on “Auto-Pilot” while driving issues as discussed in this article.

Michael Power
mobilehomeparkdepot.com





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