Homeowners in different Saratosa Florida mobile home parks may see lot rental increases each year due to a myriad of reasons that we are going to discuss in this article. One reason is that the cost of living in general goes up each year, and this affects the cost of rent as well. Another reason is that the property taxes on the mobile home park may go up, and the park owner may pass this increase on to the tenants in the form of higher rent. Finally, insurance rates may go up, and again, the park owner may pass this increase on to tenants in the form of higher rent.
Once you move into your Sarasota Florida mobile home, located on leased land, one may wonder how long the lot rent will stay the way it is.
How soon will the lot rent go up and how much?
Also, why will lot rent increase in the very first place, isn’t the lot rent already high enough to begin with?
All of these questions are ones that the traditional mobile home Buyer thinks about when purchasing a mobile home on leased land within the Sarasota Florida area.
Florida mobile home
Today, we here at The Mobile Home Dealer will attempt to provide three reasons why Sarasota Florida mobile home lot rent may in fact increase each year.
Reason 1: Rising Costs Of Service Providers
Most mobile homes on leased land will have lawn care provided within the monthly lot rent. This may include lawn mowing around each mobile home in the mobile home park, upkeep of all the green space in the common areas, and additional maintenance of trees and flowers throughout the mobile home park.
It is reasonable to expect that each year the laborers and the tools they use for this work will increase. As such, the mobile home will need to pay these higher rates by the companies they contract for the labor to be accomplished. Increased rates passed on to the park will lead to increased lot rent amounts for the residents.
Reason 2: Inflation
Whether we like it or not, inflation is a part of society. Simply put, inflation is the rising costs of goods and services that further devalue the country’s currency. This can be attributed to external factors such as the economy or global trade issues but, for this situation, we will just state that inflation increases yearly by around 3% nationwide.
With this understood, expect to pay around 3% higher for lot rent each year.
Reason 3: Park Improvements
One of the perks of owning a mobile home on leased land is the fact that, essentially, the park takes care of just about everything in the park other than the upkeep and maintenance of your individual property.
These updates may include the streets in the park, clubhouse, pool, fitness center, and green spaces.
With additional updates such as putting in a new pool or adding a bark park for the community residents to use, someone has to pay for these items.
Anytime a park adds a large public use structure to the community expect your lot rent to increase to pay for it.
Mobile home on leased land
Lot rent on a mobile home is a reoccurring fee that will be paid by the resident to the mobile home park forever, it is not a payment that will go away.
The nice part about this is that you, as a Sarasota Florida mobile home park resident, have very little to do regarding maintenance and upkeep of the park, the public areas, amenities, or in many cases even your lawn!
The bad part is that this payment will never pay off, and, as described above, will go up gradually over time.
There are a few reasons why lot rent costs will increase each year: Inflation- As the cost of living and running a business goes up, so does the price of lot rent. Supply and Demand- If there is more demand for lots in a park than there are available spots, the price of rent will go up. Location- If a park is located in a desirable area, the price of rent will be higher than a park in a less desirable location. Amenities- A park with more amenities (pool, clubhouse, etc.) will charge more for rent than a park with fewer amenities.
Park owners also protect their businesses as a small mistake could lead to financial loss. Of course, running a mobile home park is no joke. Owners and their employees need to make their living as well.
But don’t let this “unfavorable news” discourage you. Mobile home lot rentals all over the US are increasing too with California being the most expensive State for mobile home parks. You are not alone and, if you are living in a mobile home in Sarasota now, your situation is not as bad as those living on the West Coast.
Additionally, there are other ways to mitigate your financial burdens when the lot rent increases. There are always ways to save money and if you are worried, try to take a look at the following tips. If you are already living on a tight budget and are afraid of the upcoming lot rent increase, read these useful money management tips.
- Cut meaningless expenses and stop browsing online shopping sites looking for interesting buys.
- Make a list of your daily expenses and see if you can squeeze it by removing the less important expenses.
- Sell out things that you’re not going to use.
- Cook instead of dining out.
- Buy foods from farmers’ markets and not from big grocery stores.
Overall, it is important to understand what lot rent is and how the rising costs will affect you and your budget as you continue to live in a land-leased mobile home park around the Sarasota Florida area.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
See Also:
- What Are Land-Owned Mobile Home Parks In Sarasota Florida?
- Is It Possible To Finance A Sarasota Florida Mobile Home?
- Should You Sell Your Sarasota Mobile Home During Snow Bird Season?
- Has Covid-19 Affected Sarasota Mobile Home Sales?
- Why Buying A Sarasota Mobile Home During Covid-19 Is A Great Idea!