Reprinted from the June 2005 issue of the Journal of Manufactured Housing
While assisting clients in finding qualified m/h land lease communities for purchase as buyer's agent, I have found it necessary to keep a numerical score which will allow a comparison between the communities. Although many investors and other professionals refer to a community as being from 1 to 5 stars, they are merely rating a park on a scale of 1 to 5 without any specific criteria to go on.
The older "5 star" system which was originally designed by Woodalls Publication has long ago become obsolete. For more background on the obsolete system, read "The Whole Star Story" from the November 2004 issue of the Journal, or click on the tab located on the left
My client and I subsequently devised a simple 100 point system for performing a relative comparison of various communities which are being considered for acquisition, based on a set of 8 criteria.
Weighting factors have been applied to each category which are designed to indicate the person doing the rating's preferences. It may be adjusted by each user to reflect different weighting factors. As used here, of course, the values selected are strictly subjective.
Other factors which are not included here which will also affect relative community evaluation are: Income/expenses, market location, market demographics, market demand, area economics, competitive community occupancy levels, apartment rents and occupancy, single family entry level home prices, etc.
1. Condition
Overall condition of the community including it's initial appearance when first encountered. Pride of ownership of resident's homes, clutter in yards, non-passenger vehicles on sites,
2. Amenities
The level of community amenities, including, but not limited to community center, pool, tennis courts, basketball court, fishing lake, golf, lake or water front, arbor cover, etc.
3. Sites
Values determined by the size and orientation of homesites, from large parallel to perpendicular, all the way down to obsolete (will only take RV units or older smaller units which are generally out of production.
4. Homes
Rating is based on the size, quality, and condition of the homes within the community. Value includes accessory structures, and their condition. Rental homes are generally a negative.
5. Parking
An important feature is where resident's vehicles are parked, on or off the site, covering including carports, garages etc. Provisions for one to three vehicles, and the parking surface from none through gravel to concrete.
6. Utilities
From a management perspective, it is important to know the source of potable water distribution and wastewater collection, ranging from all municipal to on-site, with a provision for underground electrical, cable & cable TV services.
7. Location
The proximity of the community to desirable services such as hospitals, employment centers, schools (if non age restricted community), neighborhood supermarkets, regional shopping centers, high visibility, neighborhood safety issues, etc.
8. Resident
Resident types: age 55+ all adult restricted or non-restricted all age family communities, by percentage of each if in sections, and whether or not there a substantial number of rental homes.
Note: It may be downloaded and used freely, provided the user reproduces the copyright and contact information by allowing it to remain in the spreadsheet.
Click here to go to the worksheet: www.mobilehomepark.com/xlsworksheet.html
* The new "5 star" community rating system, which would roughly compare with the original Woodalls 5 star system. For example, a park with a score of 45 would be considered a 2.25 star community by dividing the total numerical score by 20, and one with a 63 point score would be a 3.15 star community.
Eddie Hicks
Edward "Eddie" Hicks has over 33 years of Mobile Home park experience. His website is www.mobilehomepark.com.