In one of my early mobile home park deals, I learned a valuable lesson. In the middle of winter, my park lost its natural gas supply—leaving 80 families without heat or hot water. It was a harsh introduction to the risks of what's known as "master-metered gas."
Why Buried Metal Gas Lines Matter
Metal pipes buried underground will eventually corrode. Even though you rarely see them, they have a limited lifespan. Many cities across the U.S. are currently replacing aging gas infrastructure because corrosion is a long-term inevitability. That being said, not all soils have the same levels of corrosive elements and some metal lines look nearly as good today as they did when they were buried a half-decade ago. But having gas lines gradually deteriorating is the reason that park owners must take gas line maintenance seriously—there's no such thing as a "minor" gas leak.
Ownership of Gas Lines: The Real Divide
When a park's gas utility owns and maintains all lines leading up to individual meters, the park owner's responsibility is minimal. You only own the small connection between the meter and the home. But when a park is "master-metered," meaning there's one main gas meter for the entire property and the park owns all internal lines, the risk shifts entirely to you. That means you're responsible for every foot of buried pipe, every repair, and every replacement.
In the 1950s, when mobile homes were designed more like RVs, park builders often used master-metered systems for convenience—residents could "plug in" their homes immediately. Today, that setup creates one of the largest financial and safety liabilities a park owner can inherit.
Reducing the Risk
If you're looking at a park with a master-metered gas system, there are several ways to limit exposure:
- Ask for recent testing records. Pressure tests and corrosion reports, if available, can give you a clearer idea of the system's condition.
- Inspect the pipe directly. Dig up a section and examine its state. Soil chemistry can vary, and some areas may cause faster corrosion than others.
- Have a replacement plan. Price out what a full system overhaul would cost and factor that into your offer or financial projections.
- Explore alternatives. In some parks, switching to propane or converting entirely to electric appliances can eliminate natural gas risks altogether.
- Budget for emergencies. Even if your system passes inspection, assume that failure will eventually occur and plan accordingly.
When a Master-Metered System Still Makes Sense
There are rare cases where a master-metered gas system doesn't break the deal. For example, if the park sits in a prime location or the purchase price is substantially below market value, the upside might outweigh the risk. Many of the most valuable coastal parks in California have master-metered utilities.
The key is balance. If you take on an aging gas system, you must receive enough in return—either in price, location, or long-term value—to justify that burden.
Final Thoughts
Gas line ownership is often overlooked during due diligence, yet it's one of the most important technical details that separates a strong investment from a costly mistake. For buyers learning how to evaluate parks, understanding this issue is essential.
My early misfortune underscores a lasting principle: always know what infrastructure you're responsible for and what it will take to maintain it. In mobile home park investing, the best operators don't just plan for profits—they plan for problems, too.