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BEAUFORT — Tenants at a local mobile home park are scrambling for options after new management announced rent will double starting July 1.
Hilanda Mobile Home Park residents were notified in late May, via notices tucked into their screen doors, that their lot fees would jump on average from $350 to $700 a month.
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Hilanda Mobile Home Park residents were notified in late May, via notices tucked into their screen doors, that their lot fees would jump on average from $350 to $700 a month. According to several tenants, new owners Hilanda MHP offered no explanation for the steep spike.“They did not provide us with any justification for the increase,” said Jovana Armstrong
First of all, here are the housing stats for Beaufort, SC, which is where this park is located:
Median single-family home: $344,300
Average 2-bedroom apartment rent is $1,330
So I think we’re all in agreement that a lot rent of $350 per month is ridiculously low in this market. So what should the lot rent actually be? Based on the old-timer algorithm that lot rent should be ½ of 2-bedroom apartment rent, then the lot rent should be around $700 per month … which is exactly what the new owner is raising the lot rent to.
But here’s the problem. America is based on a free-market system in which businesses set their prices based on their best guess, and consumers respond with their pocketbooks and the price adjusts from there based on supply and demand. The author of this article is trying to sell the viewer on socialism, which is based on the government setting prices.
While we try to hold our rent increases to a maximum of $50 or so, in this case that would take 7 years just to get to market. The rent is simply too low. And I have no doubt that the price the buyer paid necessitates a much higher lot rent to cover the mortgage.
But clearly this article is really geared to try and start a movement for rent control in South Carolina. So here’s the bad news for all you South Carolina socialists out there: South Carolina is NOT trifecta blue. Not even close. In fact, it’s a RED trifecta. So rent control is off the table and, as a result, this article is absolutely irrelevant.