Capital Retention

Residents desiring to preserve capital funds. Residents can use funds for other purposes. Does it make sense to tie up money in land? Money tied up in land is difficult to access.

 

Lower Capital Outlay

Families and retirees are able to own their own home with less up front cash. Residents can live in higher priced locations they could not otherwise afford.

 

Lower Transaction Costs

Cost of buying and selling land with title insurance, commissions, surveys, loan fees and other costs are significantly higher than costs associated with purchasing a manufactured home in a land lease community. Purchasing a manufactured home is more like purchasing a car. The title process is much less expensive.

 

Additional Costs and Exposure to Market

Property taxes tend to increase dramatically from time to time. The base property taxes on manufactured homes are significantly less than a single-family home of a similar size because the resident is not paying the property taxes on the land component.

 

The market value of land varies up and down with the overall real estate market which in certain economic times causes the value of a home on land to decline. Manufactured homes on leased land are not impacted by the decline in the value of the land they occupy.

 

Ease of Sale

Manufactured Homes are lower priced than alternative housing for the same livable square footage which means a larger group of potential purchasers are available to purchase a manufactured home.

 

Costs of sale are significantly less. Transfer of title is relatively quick and easy.

 

Sale can be concluded quickly, often in a few days versus a land-based home that can take weeks or months.

 

Similar to Owning a Single Family Home Located on Land

No common walls as in apartments and condominiums. Parking for multiple vehicles in a private driveway next to your home. Small yards that are easily maintained but still allow for gardening, children’s play areas, and pet accommodation. Minimum of steps, unlike apartments or condominiums that may be on second or third floors of a building. Individual utility meters that allow the resident to pay for their individual usage.

 

Recreation Areas and Common Facilities Often Provided for Residents

Clubhouses
Storm Shelter
Central Secure Mail Delivery

 

Major Maintenance Provided by the Ownership and Management

Street repair and maintenance
Tree trimming in common areas
Utility system maintenance
Street light maintenance
Common area landscaping
Common area facilities maintenance

 

Enforcement of Community Guidelines

Management enforces the rules and regulations to maintain the quality of the community. Management can act as a mediator to resolve neighbor to neighbor problems.

 

Safety and Security

Management tours the property and notices if something does not look right.
Residents tend to look after their neighbors because residents are often long-term residents of the community.

 

Because residents tend to be long-term residents there is peace of mind that neighbors will notice if a strange occurrence happens while a resident is away for an extended period of time.

 

Network of Friends

Easy for residents to meet people through community social events or use of the common area facilities. People with a commonality of purpose and interests tend to congregate together.

 

Professional Management

Community is not operated by volunteer boards with their own agenda.
Community managers and staff take care of day to day operation of the community. No community politics or conflicts of interest in making decisions that impact residents. Management deals with sensitive matters fairly and objectively.

 

Build Equity Through Ownership

Much better than paying apartment rent where nothing is recovered at the end of the tenancy. When the resident leaves there is equity to take to the next housing choice. Pride in ownership.

 

Cost to Own Versus Cost to Rent

Often costs less to rent than own. Borrowing money is essentially renting the money for your use to purchase other items.

 

Everybody rents or leases items used for a specified period of time all the time, this includes such items as hotel rooms, airline seats, cars, mini-storage units, furniture, and many other items. When a person rents or leases the person only pays for the time or item used.