Rh, Home Buyer in Oakland, CA

Hello, I'm mystified by mobile home space rent variations. They seem to range from $350 up to $1100, with

Asked by Rh, Oakland, CA Fri Mar 27, 2009

no apparent reason for the differences. Cheaper homes sometimes have very high space rents. Is the high rent one of the reasons they are cheap?

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5
Terri Vellios, Agent, Campbell, CA
Sun Aug 9, 2009
I've sold mobile homes and toured countless communities, and I own one, so I can speak with some knowledge.

You will find variances due to the following factors,
1) Rent Control. The rent increase is limited by the city if the park is in rent control.
2) All age or senior. You will find the 55+ and 65+ parks higher in rent
3) Amenities. Some parks have higher end amenities, common pools, spas, parks, recreation rooms, etc. Also, are any utilities included in the space rent? This will increase your rent (think of it like a Home owners association fee).

If you are looking at a mobile home consider that there are three contingencies and areas of focus,
1) Financing: The age of the mobile will determine the cost of financing or not financing. 1976 and younger get better rates, under 1970 you may have to pay cash or very high rates. Most loas are 20-25 years (very few 30 year loans). Interest rates in the 7% up to 10%. Up front points are higher too.
2) Rental Agreement. You will have to qualify for the rent and the mortgage, typically your mortgage and rent combined needs to be in the range of 1/3 of your income. So if you make $3000 a month your rent and mortage can not be greater than $1,000 a month.
3). Qualifications. You will have to qualify for the community.

Restrictions; If you have children, young adults and pets you will need to verify that the community will allow this. Also, some communities you can not rent your mobile home, or have guest stay for extended periods. what is the parking like, and do they have options for RV storage?

Is the community under any possible changes, such as selling the park, changing from or to rent control? Will the rent change, how is it managed?

These are not all bad situations. Let's look at today's economy and why one may buy a mobile home vs a condo.

Estimate:
Average 2 bedroom 2 bath condo purchase price $300,000, at 5.25% interest per month based on 3.5% 30 year FHA loan (if the condo qualifies)
Your monthly Mortgage plus Mortgage Insurance $1,972, then add $612 per month for property tax, homeowners fees, and add in $ for your casualty insurance your total monthly housing total would be about $2,625

Average a 3 bedroom 2 bath Mobile at $150,000, at 7.5% interest, 25% down over 25 year loan,
Your monthly mortgage would be $887 and estimate rent of $700, add in casualty insurance and your estimated monthly housing total would be about $1,636.

By the way , there are four communities I love to share with people,
one is in Scotts Valley, you own the land but owners must be 55 and youngest 45, many have garages attached.
Another is in San Jose (San Jose has rent control), all age park, very nice community, rents are in the $500 and $600's some have yards and attached garages. The third is also in San Jose, must be 55 to own, youngest resident can be 18, rents around $850, many have yards, privacy and attached garages.
The final is in San Jose, rents are low, all age park, can have larger dogs, and you can rent out your mobile.

Hope this gives you some insight.
Web Reference:  http://www.terrivellios.com
2 votes
Hi Terri,

Can you give the names of the mobile home parks in San Jose that your mentioned?

Regards,
Margaret
Flag Tue Oct 18, 2016
Hi Terri,

Can you give the names of the mobile home parks in San Jose that your mentioned?

Regards,
Margaret
Flag Tue Oct 18, 2016
Hi Terri,

Can you give the names of the mobile home parks in San Jose that your mentioned?

Regards,
Margaret
Flag Tue Oct 18, 2016
I am anurse wanting to place my 5th wheel home in mobile home park in the bay area, but haven't found any vacant sites anywhere...any ideas..please..desperate soon.
with kind regards,
gayle
Flag Fri Jul 29, 2016
You didn't mention any park names in San Jose
Flag Sat Jul 19, 2014
Erica Glessi…, Agent, San Jose, CA
Fri Mar 27, 2009
Every time a home changes hands, the park is likely to up the rent by some amount deemed "in keeping" with the norm. In one park in North San Jose, if the owner decides to rent out the home, the space rent automatically almost doubles (goes to $1100 from, in that case, about $700). And it doesn't change back, if the owner moves back in and the renter leaves. It will forever be at that higher level.

When you see a low rent, it typically means one owner held onto the home and the space for a long time, thus the park can only raise the space rent by a limited amount each year. Also it was likely that the space was owner-occupied or looked like that on paper.

Hope this helps!

Erica Nelson
http://www.EricaNelsonEstates.com
408-416-7090
2 votes
Glen Mitchell, Agent, Half Moon Bay, CA
Fri Mar 27, 2009
yes ray, high rent is a killer on home prices. most people cant afford to bring in a new home on top of the rent payments. its not worth buying a space and buying a new home unless prices are really cheap. Sometimes people mistakingly say that the manufactured home itself is the problem. the new homes are very well built and better than many site built homes. If you had to pay an extra $1000 for a site built home every month that would keep the values down too. some parks have rent control so that may be the case in the $350 a month example. Park owners are in business to get the most the market will bear, and dont necessarily care what the homes are worth.

glen
manufactured home dealer
real estate broker
Web Reference:  http://www.maui4rent.com
2 votes
Hi I would like to get a mobile house but would like to buy a land not in parks, just want to know if I have the city permit to do it in San Mateo. I saw to many lots in half moon bay and Belmont so interesting to know it.
Flag Wed Aug 3, 2016
Ramesh Shres…, Home Buyer, San Jose, CA
Sun Jan 11, 2015
Dear Sir
I am Ramesh Shrestha from San Mateo, California.
I have few question about mobile home space rent.

1. Where I can get space for rent to install my own mobile home for residential purpose near by my place?

2. How much I have to pay for rent for about 2 bed room mobile home?

3. How I can get electricity, water and sewerage line?

4. Do I need to get permit?

Ramesh
email; itc0001@outlook.com
0 votes
Tattoo, , San Joaquin County, CA
Mon Jul 20, 2009
Can you clarify please- are you looking in one park or many different parks when you get these various space rent quotes? Are the parks senior or age restricted, or all age? How old are the parks you're looking at? What amenities do they have? Alot of this criteria reflects space rent, as well as the area the park is in and whether the city or county is under rent control.
0 votes
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