Do Sarasota Mobile Home Lot Rents Always Go Up? We at The Mobile Home Dealer get this question all the time from first-time mobile home buyers looking to begin enjoying all that a mobile home park has to offer.
Homeowners in different Saratosa, Florida, mobile home parks may see lot rental increases each year for a myriad of reasons, which we will discuss in this article.
Once you move into your mobile home in Sarasota, Florida, located on leased land, you may wonder how long the lot rent will stay the same.
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.
Do Sarasota mobile home lot rents increase each year?
Generally speaking, the answer is, yes, lot rents will increase each year, and it would be unreasonable to think that they will not increase whatsoever or become capped for an extended period of time.
A good rule of thumb when budgeting for your mobile home is always to remember that lot rents will increase at the rate of inflation at the start of each year at a bare minimum. Expect to pay 2% to 3% more for your lot rent each year you’re living in the mobile home park that you currently reside in.
But the question then is, “well, Mark, why does it have to increase at all”?
This is another question we regularly field at The Mobile Home Dealer. The answer to this question is the same when asking why the price of groceries, fuel, or electricity continues to increase yearly. It directly concerns the national cost of inflation and how it affects everything in the economy.
You see, as much as we would all like the cost of things such as groceries or fuel to remain the same each year, it just doesn’t.
For example, in the mobile home park, most lot rents include the cost of lawn care, which would be blowing, trimming, and cutting your lawn weekly for the entire year.
Now, if the cost of fuel is going up each year to run the lawn equipment that is taking care of your lawn, then the owner of the landscaping company will more than likely need to charge the park more each year to keep up with the rising operating costs of their business. The park then will pass these increases in price to you as a mobile home park resident. Although this is a terribly simple example of the increase in lot rent, I imagine you are getting the point of why the lot rent will continue to increase each and every year.
Lot rents occasionally do not increase or stay stagnant for a year or two without much, if any, increase.
Many times, this will be directly related to national inflation and the value of American currency for that current year.
Although we would all love for mobile home lot rents to stay the same forever, unfortunately, this is a fairy tale and one that should not be expected to happen each and every year.
The following three reasons are most likely to affect the price increase of lot rents.
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 park, upkeep of all the green space in the common areas, and additional maintenance of trees and flowers throughout the park.
It is reasonable to expect that each year the laborers and the tools they use for this work will increase. As such, mobile home parks will need to pay these higher rates to 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.
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.
Park Improvements
One of the perks of owning a mobile home on leased land is that 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.
This is Mark Kaiser with the Mobile Home Dealer. We help mobile home Buyers and Sellers improve their lives.
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