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What Does Mobile Home Lot Rent Include?

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There is a lot to know and unlearn about mobile homes. A mobile home lot is a plot of land the current park owner has. The mobile homeowner is responsible for paying the park owner the site or lot rent. In other words, the person paying rent owns the mobile home, not the land.

The mobile home lots rent prices can be challenging to understand at first. We include this guide to help folks who live in manufactured home communities and must pay rent for their mobile home lot.


What is Lot Rent?

A rental or lease agreement for a piece of land known as a “lot” is known as lot rent or lot lease payment. The renter must pay the owner of the land where the mobile home is situated rent each month. A mobile home owner may frequently obtain a loan to cover the cost of the house only, not the property on which the owner will place it. Anyone intending to relocate to a manufactured home community or mobile home park should be ready to make a monthly lot rent payment.

Most manufactured home communities are for-profit organizations. They offer a service to homeowners who own the building, not the land. In other words, the landlord charges a fee for the use of leased land.


What is it Used to Pay For?

  • Utilities – Many land-lease community owners include the cost of extra services, such as monthly utilities, in the lot rent. If you do not have a water bill, the water for the park is most likely already included. My lot rent includes what things? To the community management, this is a good question to put.
  • Amenities – Additional amenities the owner might offer include Garbage collection, cable TV, internet connection, and similar services.
  • General upkeep and maintenance – A manufactured home neighborhood needs care like any other residential development. Additionally, they must shovel the snow or mow the lawn. Then there is routine maintenance on buildings that house amenities like a clubhouse, a pool, or a dog park.
  • Infrastructure Improvements – Every landowner is required to keep a fund for infrastructure upgrades. For more frequent maintenance, see here. Examples include replacing or maintaining the water, sewer, front gates, and fencing.


Not Covered in the Lot Rent

Your lot leasing agreement’s conditions might differ from one mobile home park to the following. The following items, however, should be double-checked, and you should typically be ready to manage them yourself (or request a supplement in the lease agreement):

  • Taxes – Although you may not have to worry about paying property taxes, the mobile home will be subject to taxes.
  • Insurance – if the state has severe weather, buying the necessary insurance could be expensive. Make sure you are aware of the mobile home wind zone ratings.


Does Lot Rent Apply to All Mobile Homes?

Most of the time, the two owners of the property where the mobile home is situated agreed that not all mobile homes would be required to pay lot rent.

However, not every member of a manufactured home community makes a large rent payment. The monthly house rental agreement includes the lot rent for people who rent a home. In other words, a residence owned and leased by the community or park typically does not have a set lot rent.

Additionally, the majority of people who live in dwellings on private property will not pay separate lot rent. There are several causes for this. You are already covering that cost if you are the owner of the manufactured home and landowner. If the land belongs to someone you know, such as a relative or friend, you might not be compelled to pay a lot rent. The owner would include a land lease in the overall rent payment if you rent a home on private property, just like in communities.


Can a Lot Rent Change?

The cost of lot rent will always increase, regardless of where your mobile home is situated or who pays. Any resident of a manufactured home neighborhood should anticipate an annual or biennial rise that, at the very least, accounts for inflation. In other words, if the worth of the land increases, so does the value of the space you rent. And you should anticipate paying appropriately.

A property owner might occasionally make significant improvements to a neighborhood and raise prices. Let’s assume that the property owner wishes to install much-needed streetlights. Each resident who gains from the additional lighting may receive a share of that expense from the property owner. The same is true for road improvements, utility expansion, and community improvements to lifestyle amenities like dog wash stations and pickleball courts.


How Stable Is the Rent for a Mobile Home Lot?

The possibility that a new park owner may increase the lot rent is one of the biggest concerns for those who live in mobile homes. Consider the following scenario: the current owner sells the mobile home park. The new owner might want to increase the lot rent to recoup costs.

The good news is that, barring a lease agreement, certain states may consider this practice unlawful. In some places, the new owner must maintain the lease with the same terms for the duration. For this reason, they must negotiate a lease takeover between the original owner of a mobile home park and a prospective new owner. They could also try settling with the mobile home park residents. The tenants do not have these rights in other cities and states. They might have to pay higher lot rents or risk eviction in such circumstances.

However, please don’t believe your landlord’s (old or new) word for it. Confer an attorney to see if you can base your decisions on the lease agreement, the area in question, and the local regulations. If the chances are not on your side, you might consider whether purchasing a mobile home is preferable to renting one.


Final Thoughts

For most mobile homeowners, lot rent is unavoidable, especially if they lack land. Think carefully before signing a lease if you’re considering living in a mobile home park. Make sure you acquire the most acceptable value available because mobile home lots rent prices might be affordable for numerous years. An excellent place to consider if it is worthwhile to purchase a mobile home is also at this point.