Several years ago we were looking for a housing solution for a lot in one of our Northwest parks. The park had very narrow streets which made squeezing in 14x70 single wides a daunting proposition. The lot itself was small & didn’t have the right setbacks for a standard sized mobile home.
The property manager scoured the web for an extra small home but couldn’t find anything. Thankfully she stumbled on an intriguing alternative instead. Something we had heard of before but never used in one of our properties - the park model.
A MH dealer down the street received a new shipment of park model homes that caught our manager’s eye. These seemed to check off all the boxes, small 1 bedroom units (they do have models with 2 bedrooms), most with additional sleeping lofts making them practical for a single or perhaps couple with modest space needs.
We were impressed with the build quality, thoughtful designs, & even more intrigued with the fact they’re all under 400 sq ft (anything over 400 sq ft falls under the jurisdiction of HUD - therefore Park Models are technically considered RVs).
Prices tend to range from $50k up to $100k+. With additional amenities & aesthetic upgrades pulling the prices up substantially. High end park models are ideal for higher end vacation spots (mountain towns or beach markets).
Anyways, we pulled the trigger on the purchase and sold the home the week it moved in.
Why Add Park Models?
Here’s why you might want to consider Park Model Homes for your MHP/RV park.
First, park model homes seem to fit right in the middle between a manufactured home & an RV, bridging the gap between the nomad nature of the RV & the large more permanent manufactured home. This broadens the customer base, adding another tenant type a park can cater too.
These homes are towed in, situated on a frame with wheels making them significantly more mobile than standard MHs but are still conducive to skirting which could make them less transient than RVs (you do need a commercial drivers license to transport these).
Anyone that has paid to haul a double-wide 100+ miles knows what a substantial benefit this is.
Second, because the homes are also chattel - standard financing options apply. Tenants who qualify for a mobile home should be able to use the same financing options for these park model homes.
Third, there’s a unique element of flexibility that makes them enticing. When a traditional mobile home is blocked & set, it’s very expensive & difficult to move (even just several yards away). A park model home, although still blocked & setup, can be moved MUCH easier.
Those of you who with ever evolving parks - or a clustered / regional portfolio - you might want to consider that.
Park Model Drawbacks
They’re tiny (duh). At 400 sqft, you better REALLY like who you’re living with.
Can you charge full lot rent? Sure, we have - but it may be a harder sell when their neighbors utilizing a full lot might be paying that same rent.
Higher turnover, much like a studio / 1bd apartment.
So the question arises, what’s the ideal case for the Park Model Home?
Tight, urban parks - any parks within crowded suburban / urban cores these would be phenomenal. People are looking for affordable ways to stay close to work & these would work great in parks where space is tight, lot rents are high, & demand is even higher.
RV to MHP transitions - If you’re hoping to convert some RV spaces to MHP, this might be an ideal way to start.
Nonconforming Pads - much like our northwest park, these homes work well on pads that can’t host a standard sized mobile home.
Conclusion
Park models are not just for RV parks. They are a creative solution to increase occupancy and improve the appearance of park entrances (where there is often wasted space that might accommodate a park model).
It’s likely park model homes will slowly rise in production as high density parks (in good locations) look to replace dilapidated homes or squeeze in another few units.
We are excited about the trend as we support any high-quality housing products to help fill lots & solve our affordable housing problem.
Happy Trails,
MHP WEEKLY