FAQ: Can You Rent Out A Mobile Home For Profit?
A major reason for owning a mobile home is, of course, to have a home for yourself and your family to live in. However, mobile home ownership isn’t limited to those who want the place for their own residence. If for whatever reason, you’re not living in your mobile home, you may be thinking of other options to put it to good use. So, you’re wondering can you rent out a mobile home?
Actually, you’re not simply wondering if you can rent out a mobile home. In fact, you’re wondering a little more than that: can you rent out a mobile home for profit. Maybe you’re looking to have a little extra money in your pocket, so you can do a little more than just pay your bills every month. Of course, paying the bills could be the very reason you’re toying with renting.
But whatever the reason, who doesn’t like the idea of making a profit? Renting may sound like a clear path to making money. However, you want to keep in mind that having renters in your mobile home doesn’t automatically equate to profit. It’s possible to invest in something in an attempt to make money and end up breaking even or losing money. Of course, it goes without saying most of us would prefer to make money if given a choice among these options.
Define your terms
So, for the purposes of this article, let’s establish a working definition of “profit.” Let’s say that by profit we mean the difference between how much money you lay out to rent your property and how much you make from renting your property. For instance, say your clients pay you $800 per month. But your expenses associated with the rental come out to $600 per month. In this case, our working definition leaves you with $200 in profit.
In short, we’ll say profit is taking in more than you put out in the situation.
Factors to keep in mind when asking, “can you rent out a mobile home for profit?”
As we alluded to earlier, making a profit isn’t a given. Let’s dive into some factors that can affect whether renting a mobile home turns out profitable.
Who you’re renting to
First up, who rents your mobile home could make a difference. Ideal renters would treat your home like it’s their own and wouldn’t damage the home other than normal wear and tear from living.
However, consider how your renting situation could be affected if you end up with renters who:
- don’t take adequate care of the house (for example, don’t notify you when leaks occur or something breaks)
- don’t pay on time (or don’t pay the full rental amount or simply don’t pay at all)
- leave unexpectedly (expecting you to clean out the mobile home and remove furniture left behind)
- you end up having to evict (sometimes a difficult process).
To sum up, be advised that who rents your home is an important consideration. Also, as you consider renting out the mobile home consider your location – our next point.
Where you’re renting
When it comes to location, there are a couple things to keep in mind.
- First, the amount you’ll receive for renting out your mobile home will vary depending on where you live. So do some research to determine what a reasonable rent would be for a comparable housing situation.
- Second, don’t forget about lot rent if your home is in a mobile home park. Unless the renter will be paying the lot rent, don’t forget to take this into account when you calculate your expenses related to the mobile home.
- Another thing to keep in mind about the location is the rules and regulations of the mobile home park. Be sure you check whether you’re allowed to rent out the mobile home. And once you figure out the answer to that question, keep in mind that you want renters who will follow the rules of the park.
Other things to keep in mind
Before we close this article out, let’s touch on a couple more things. When calculating your home-related expenses while renting, remember insurance, as we’ve mentioned in a previous blog post.
Additionally, if you secured a loan to purchase the mobile home in the first place, you may still have mortgage payments. In that case, take time to calculate whether your monthly rental income would cover the monthly mortgage payment.
Do your research
So, can you rent out a mobile home? By now, you know that the answer is a qualified, “yes.” Evaluate your mobile home situation including whether you have a mortgage payment and whether the home is in a mobile home park. Consider if you’ll have to pay for insurance. Run some numbers to determine if renting will actually be profitable in your case specifically. If you discover it is, take a moment to get a few more thoughts from us on mobile home renting before you get the ball rolling.