I was really looking forward to this video, Russell. I enjoyed hearing about the history of the leased lots in it's beginning! Great information as we are determining our next move. It really does depend on your circumstances at the time you make the move. The breakdowns provided are very helpful. My only concern is if the lot rents go up so high, they become unaffordable, and the home harder to sell.
Glad you enjoyed it. If you want a more in depth history watch my earlier video on the early days: th-cam.com/video/G5nkROdYblE/w-d-xo.html Parks that raise rents according to the statute may affect home prices but the ones you really need to watch are those who have decided they can charge buyers huge increases over what they are charging current residents. This will cause the value of the home to plummet or even make it unsalable. There are only a couple I know that are following this practice.
NO! If the owner of the park gets bought out by a developer, I could suddenly find myself either having to abandon my home or trying to find a new spot to move it to and on a timeline as well. I want the security of knowing that where I'm parked I get to stay unless I want to move the home-
Your concern is certainly shared although in the better parks in Florida this is extremely rare. I cover how to asses this in my book on selecting parks.
That happens a lot in Miami and now in Pembroke pines fl where homeowners are only given 30 days to leave and $2,500 for their property by Trinity ........ don't want to say the name of the place.
Another informative video, Russ. Your cost comparisons based on income and available funds to purchase a second home are useful. I recently purchased your book on Amazon, it has a lot of useful information and I recommend it for those considering relocating or "snowbirding" in Florida. Please consider doing some "Top Ten Manufactured Home Communities in Florida" by their respective categories. I think there would be much interest in that.
Thanks, and glad you liked the book. If you haven't already, could you do me a favor and post a brief review on Amazon? Those really help! It's tempting to do "the Top Ten", or "Best Midsized Communities", or "5 Parks to avoid" but unfortunately; I'm not qualified. You see, what might be my idea of a Top park would be based upon a lot of factors specific to me. There are a lot of parks I would not consider that are at capacity with folks who love it there. Best I can do is offer views into as many as I can and the tools needed to compare them for your particular needs.
I noticed you'd shown several scenes from Cypress Lakes, which has two golf courses. I was considering moving there, and it's not out of the running. But I think I read, in the comments section of another video that I'm paying for the upkeep of the golf courses, which I won't use because I don't golf, so it wouldn't make much sense for me to move there and pay for activities I'm not going to partake in. Do you know anything about Juliana Landings in Auburndale? My family and I drove past there about two weeks ago, and really liked the area. I love to fish, and there's a decent sized lake nearby, plus Auburndale is beautiful. We drove through town and I really liked the cleanliness of the park. My wife looked up home prices, and right now, they're within our projected budget. I watched your other lot rent video, and I had a question. I've seen some parks include water expenses in the lot rent. Do you know if some parks allow for other utilities to be counted in the lot rent payment? Thank you for posting this video. As always, like your previous videos, it was very informative.
It's a mid-sized park (273 lots) owned by SUN Communities. There are a lot of parks this size in that area so be sure to shop around. Older parks that either have their own water plant or were centrally metered often still offer water/sewer included in the lot rent although now a days it's metered and you pay more if you exceed a base amount. I doubt any SUN park has that. Most everything with them is a la carte and added to the lot rent.
Thank you for doing these videos. I've watched them all. Wife and I planning to retire to central Florida later this year. Freshwater fishing is my passion, so I've been investigating the inland MH parks on and around the central Florida lakes. I'm wondering if resale value and ease of selling for our inheritors would be better in a co-op park than a land lease park?
I have no idea how to predict that. I think if preserving value is your primary objective you are better off in neither. Buy something where you own the actual lot with no restrictions. On the flip side, look at California. There is such a shortage of housing that mobile homes worth 50K in Florida sell for hundreds of thousands in land lease parks charging $1,500/mo. So, who knows? I do know there's lots of bargains in parks accessible to great fishing throughout the central part of the state.
In most parks lot rents are in step with or a couple points above inflation. Since Inflation is rising, so will rents. But we are seeing nothing like is seen inother parts of the country with one exception. A couple of the investment groups buying up parks have a new wrinkle - New buyers pay 10, 20, even 30% higher than current residents. Since it's a new lease agreement it is not considered raising a resident's lot rent unreasonably as covered in state statutes. The practice does play heck with someone trying to sell. Watch out for those parks!!!!
The number #1 issue I see is that the Rates keep Rising every year. The only time I stayed in a land lease community was in 2017. The monthly rent was $600 at that time , last time I checked it was around $750. The ONLY good thing was that if a tenant wanted to walk away from their his/her home the Owners would take it and renovate to resell or remove it. #2 The issue of location and offers from Big Developers who want to buy the community from the owner. Then One is given X amount of time and Notice to Remove their home to another location or let the new developer tear it down. I do agree with Russ, it is imperative to find a community that suits your needs. As residents age, ages within the community may lead to big disruptions, such as a new multimillion dollar complex being pushed when the community is tipped Younger or when This may be happening to a resident owned community I am/was interested in as I write. It is one where you own a share. A big Investment group has made a Big Offer and depending on the Vote, the community may be sold and converted to land-lease. Finally with the crazy Florida real estate market in the last 10 years, I have noticed that many 55 year olds are buying homes in the community and working full time perhaps until 67-70 years of age. This trend has I think been accelerated due to the high real estate costs for home ownership and with the rising rents, Insurance Companies bailing out, Taxes rising these 55+ communities are a cheaper option. In the past year home ownership costs have gone up 50% in parts of Florida. I do agree with Russ, it is imperative to find a community that suits your needs.
Some insightful comments. I know of 3 - 4 CoOps either selling to investors or considering it. Something to consider for sure. BTW, that increase in lot rent is under 5% annually. That's a figure I think folks should plan for. Also, the only way developers are supposed to be able to break a lease is if they are using the property for something else. You can't just buy the property and evict everyone to put in new manufactured homes on the same lots. And that sort of buyout and redevelopment is rare in mid to high level parks. Unless it's in an incredibly urban location (Downtown Miami for example) the owners stand to make much more as a MH park.
@@RussellWatsonFMHL The one I was considering as a potential place to check out is in Winter Springs, Florida just north of Orlando. I suspect the park residents are older and a good many inheritors are renting the property creating a perfect storm to sell.
@@Seer645 Well, those would seem to point to the possibility. Not so bad for shareholders although you could easily eat up gains on the share sale in future lot rent increases. But at this point most of us are looking for a stable community to make friends in and enjoy our retirement.
@@RussellWatsonFMHL I agree entirely with the last sentence. But often snowbirds, at least my older friends, all have sold out when they reached a point where they perceived a decline in their health and stayed up north at the end of their lives. I think they did not want to pass on in Florida.
You can put brand new manufactured homes in these communities and they sure are modern looking. Take a look at some of the manufacturer's websites listed under buyer resources: www.floridamfghome.com/Buyer-Resources
When you rent a lot, does the monthly fee cover water supply and sewage? And how about garbage pick-up? Of course, I assume you pay for your electricity and cable separately.
Every park is different. That's why you need a spreadsheet type form for comparing parks. Many older parks include water and sewage where the park either has its own systems or central metering. That said, these parks have almost all added individual metering and charge if you go over a base amount. BTW that spreadsheet is available by joining the Inner Circle.
Russ I recall one of your videos focused on 4 types of communities. Maybe Co-ops, Land Lease, etc. I have been looking for it to re watch it but can't find it. Can you tell me which one? Thanks.
Sorry Joe, I replied last time. Many of my video's cover these topics. You can look through these: th-cam.com/play/PLITxS9iTEF0bKTFFR6d9HDztNbi-J6Rf4.html or these th-cam.com/video/10eCCZjxyJ0/w-d-xo.html
Obviously the ones in the direct track were hit hard. It destroyed many homes of all types of construction. Outlying communities did well with newer manufactured homes having less or no damage while older mobile homes and R/Vs had more - this is to be expected.
Any suggestions on rentals of small home/mobile home/tiny home or per-fabricated homes not too far from the Tampa area? I am a retired single man with limited resources to be able to purchase AND pay land rent. Thank you!
You can try the Facebook groups listed in the website. Also you can obtain a land-lease park list for the state by joining my inner circle (free) which is also on the website. Do some google searches under the park names that are in the area. Rentals are pretty scarce and low priced rentals go very quickly. You could also call each park and ask. It may take some looking. www.floridamfghome.com/Buyer-Resources
Hi Russell, Is there any data on the frequency/timing/contracts regarding raising of lot rents or the selling of entire parks ? This is a big worry for many potential buyers. Thank you kindly
@@RussellWatsonFMHL I’ll have to check it out…they must be small we are looking for something large at least 1700sq ft.and actually like cypress lakes better…can you do a review on the Hampton’s that’s one we have not looked at yet.
There are very few homes for sale in Cypress Lakes but there may be more soon. According to a news clip I read the park is up for sale. The Hamptons is owned by SUN Communities.
Last year bought a used 1988 manufactured home for my younger sister age 68 in a gated senior living park in Haines City. At the time of purchase the lot rent was under $500. In Jan. the lot rent was raised to around $600. This put my sister and her husband in a very tight financial bind with their limited SSI. Does the law permit increases to rent that are this extreme? They are hoping to sell the home and look else where for a more affordable park.i Any suggestions is appreciated.
I'm afraid you would have to consult an attorney for legal advise. The responsibility of rent negotiation falls upon the HOA in the community. What is the name of the community and who is the park owner? You also don't say when the time of purchase was. I sent a buying tip to my Inner Circle on this recently. It wars that if you assumed a lease at less than market rate for the park, they have the right to increase it (no matter how much that is) to market rate at the next renewal of the annual lease. But, they must disclose this at the time of sale.
@@RussellWatsonFMHL thank you for you swift reply. The park is The Landings at Lake Henry don't know who the owner is, but I think it is Sun Communities Inc.. We purchased it last Aug.
@@1sacoyle Then yes, you likely fall into this scenario. While I don't recommend SUN Communities generally, I bet they followed the rules and if you look in your paperwork from the closing , you should see a statement that the lot rent would go to market Jan. 1 .(and how much that would be) The good news is that should be the last such massive increase you see if you stay there. While not cheap, SUN & most other major park owners have kept their increases a percent or two above COL. That will be quite a bit higher next Jan I suspect ,as COL is very high. But at least it will be matched by SS increases. Looking at rents there for 2020/2021 that increase seems reasonable. And there are many homes in there with lot rents above $750. A plus is the park is unlikely to be sold; where as a much cheaper park, that seems a good cost saving now, stands a very high chance of being sold to less scrupulous investors down the road. This whole set of circumstances is one of the reasons I started Florida Manufactured Home Living. People need more education on these deals before they dive into the pool.
Thanks for your videos. I don’t know much about 55+ communities but I am intrigued. If a couple wants to move to one of these do both individuals need to be 55+ or only one? Or does it vary according to the community ?
Only one need be 55. See my video on this topic for in depth info on 55+: th-cam.com/video/h-dS6CxVjN4/w-d-xo.html and for a complete guide to selecting communities and evaluating the lifestyle see my book: Retirement in Florida - Manufactured Homes & The Land-Lease Option amzn.to/3c3UMPJ
Things are potentially different than they used to be. Right now there are still some 55+ communities with mobile/manufactured homes that are cheap and have less than $800/ month lot rent. However, there are no guarantees that the lot rent won't go up. Even in sleepy old mobile home parks in North Florida, we've had investors buy the park and double the lot rent. The Florida HOAs are something else, too. Some HOAs are fine, but some are INCREDIBLY restrictive. The HOA for The Villages will fine you every day for items not in compliance including paint trim color and yard plants, etc. And, if you don't pay your HOA fees/ fines, the law has been that the HOA can take your property. So, keep your eyes open before you sign anything.
I am wanting to relocate and retire to Florida. I am disabled in a wheelchair but I do not want to live in a community with lot fees. Are there any senior developments that do not have lot fees? I so not mind paying a yearly HOA
Here's a series of videos on communities and situations that are not land-lease (no lot rent) Most HOA fees in Resident Owned Communities are monthly also BTW. th-cam.com/video/10eCCZjxyJ0/w-d-xo.html
Do all land lease lots require applicants to make three times the amount of rent and refuse cosigners?Also, I am reading that lot rent is becoming higher and higher and some folks can't make it with their budgets.
No, every park is different in what they require. Some of the larger owners may have standardized their financial requirements. Frankly, no more than 30% of your income for payments is a generally accepted definition of "affordable housing". I have never heard of "co-signers". Lot Rent, like gas, food, insurance - you name it - are all going up faster than many folks can afford. Most reputable parks raise their rent in step with some measure of cost of living but not equal to it. We don't generally see the outrageous increases seen in other parts of the country. That said, there are some more predatory investment groups buying parks in FL and raising rents in very large amounts in an attempt to repay the large loans they get (often with help from Fannie Mae or Freddy Mac) to buy parks well above market value. Today, more than ever, it pays to shop around and utilize educational insights such as we provide on this channel, on the website, and in my book.
Pine Lake Village in Jensen for example, requires a minimum of each applicant to make $30,000 annually as their income. We are willing to buy the manufactured home with cash. However, with their lease agreement we were turned away. When we asked if we can co-sign for my mom, they stated they no longer accept co-signers. We tried another place in Vero Beach that wasn't even 55-plus same scenario, but they wanted three times the rent. They also would not allow co-signers.
Try calling some of the agencies that service areas of interest - Like Four Star Homes. Their agents know the area parks and their qualification policies. That said, the very term "affordable living" means just that; the resident on the lease needs to be able to afford the payments and upkeep. No-one likes eviction and a park's first line of defense is gaining some assurance the person legally obligated to pay the bills can afford them. There are parks that are beyond reasonable in that regard and others that do everything on a handshake. Most corporate owned parks will require background checks and financial backup showing you can afford what you are asking to contract for. Unfortunately, many still equate mobile home parks with cheap living and, at least in Florida, this is no longer the case. It is cheaper than many other options, like rentals, but it's no longer an alternative to subsidized low income housing.
Hey Russ, I have been looking for a list of ROC's in the Lakeland / Winter Haven area and have not had much success. Is there a link to this type of location specific info? I really enjoy your videos! Thank you for your time.
You can request a statewide CoOp list by joining our Inner Circle. It's Free! www.floridamfghome.com/Buyer-Resources There may be other ROCs, such as subdivisions, but lists are not readily available. Check Real-Estate listings in the area for manufactured homes.
@@bettyb1581 Can you give me examples? That seems to be a reach right now with real estate being so high. I'm interested in the Lakeland, Winter Haven area.
@@SB-mw1bg I'm not in the Lakeland area. But in Broward County a friend of mine purchased a 2/2 for $75,000 and he said they had a few for for less than $110,000. My association is only $225 a month. But I don't live in a retirement community. With these rising prices I'm staying at my condo my mortgage is $550 and association $225 and I have a 2/2. I'm in Miami
Are there any communities with flexibility in the age? I love the idea of this but I’m on,y 51. I am a single woman with grown children. I’m currently living in Tennessee but I am from Florida. I’m trying to find an affordable way to get back home where my grandchildren live. Everything I see is 55+ by just wondering if there are any 50+ communities or if maybe the 55 is a little flexible.
The 55+ designation requires 80% of the households in the park to have at least one member 55 or older. It is up to the park owner and prospectus documents to decide what to do with the other 20%. Some keep it at 55+ - others have various ages they set as a lower limit. See this video for more on 55+ communities: th-cam.com/video/h-dS6CxVjN4/w-d-xo.html The policy regarding the 20% who do not have to be 55+ varies widely from park to park and is sometimes left up to the park manager. If you see parks that say something like 45+, those are 55+ parks that are allowing (some) younger people. Another scenario that may cause an exception to be made is when you are buying a home (mostly new homes) directly from the park. To get a definitive answer you must call the specific park. Parks owned by the same outfit can and do have different policies. There are also many all-ages parks. Some are quite affordable depending upon where you want to locate.
Lot rents can escalate and surpass people's ability to afford the home anymore and they are stuck. Putting yourself in a place where you have no control over lot rent is a bad idea IMO.
You really don't have "control" no matter where you live. I know several people who are being priced out of conventional homes that were long ago paid for. But property values, and hence taxes, skyrocketed over the years to a point where they are so much that they can't afford to keep the family home. Most folks in Florida who have trouble with lot rent increases were marginally able to afford it when they bought in. If the park was way underpriced, they assumed it would always stay so. Knowing your budget and planning on lot rent increases are a part of what you need to consider if a land-lease park (or CoOp) otherwise meets your needs.
That's certainly true and a (small - in Florida) risk. Some parks are a much greater risk than others - something I address in my book. There are a few that close every year but most return more to investors as parks than can be earned from the land otherwise.
Ultimate S & S , we each have our goals and ideas on what is worth our hard-earned assets. There is no question this does not meet everyone's needs. The idea is to present enough information that you can know the alternatives and make an informed decision. Glad we can help you in that regard. Perhaps a home on private land is more your cup of tea. See my latest video: th-cam.com/video/RI_l8eFGOd8/w-d-xo.html
I have seen a few parks that high. And I'm sure many that thought they could easily afford a particular park are disappointed when they learn they can't. But each of us has our goals and personal financial situation. The price of eating out has skyrocketed and I can tell you I don't do so much anymore. But there certainly are still many that find it in their budget or rearrange their financial priorities so they can, high prices or not. The key is to focus on what will work to fulfill your dream and meet your needs. If lot rents seem too pricy for you there are lots of other options. In my latest video, Zephyrhills, I explore some Resident Owned Communities (ROCs) and another idea, Park Models. Either can get you a Florida home at much lower monthly costs. Check it out: th-cam.com/video/c2Jheq1ktm0/w-d-xo.html
Russell, how do we directly contact you? I did not see a phone number on your website. When I clicked on "Contact Me," some kind of error message appears saying "Your information is not private."
Sorry, I do not sell homes or offer personal consultation; preferring to reserve the time I have available for producing educational materials. With over 22,000 subscribers, I would be quickly overwhelmed if I tried. If you have a specific question related to a video, just put it in the comments so all can benefit from the answer. If you are looking for general guidance on choosing a community, may I suggest my book: Retirement in Florida - Manufactured Homes ; The Land-Lease Option. amzn.to/3c3UMPJ To download community lists, join my Inner Circle (free) The website offers this and many more resources for finding, purchasing, and maintaining the right home for you: www.floridamfghome.com/Buyer-Resources
why pay lot rent ? because it's cheaper doesn't tie up your cash and leaves you with flexibility not trying to sell land and nobody wants it. that's why
I ❤️ your videos… keep ‘em coming!!!
Thank you! Will do!
I was really looking forward to this video, Russell. I enjoyed hearing about the history of the leased lots in it's beginning! Great information as we are determining our next move. It really does depend on your circumstances at the time you make the move. The breakdowns provided are very helpful. My only concern is if the lot rents go up so high, they become unaffordable, and the home harder to sell.
Glad you enjoyed it. If you want a more in depth history watch my earlier video on the early days: th-cam.com/video/G5nkROdYblE/w-d-xo.html
Parks that raise rents according to the statute may affect home prices but the ones you really need to watch are those who have decided they can charge buyers huge increases over what they are charging current residents. This will cause the value of the home to plummet or even make it unsalable. There are only a couple I know that are following this practice.
Love your videos Russ!! ❤
Great presentation and research! Thanks.
Glad you liked it! Thanks for the kind words!
LOVE YOUR CHANNEL!!!! ❤
thank you 😊
You're welcome 😊
great explanation on how parks work..thank you for making this video.
Glad it was helpful!
NO! If the owner of the park gets bought out by a developer, I could suddenly find myself either having to abandon my home or trying to find a new spot to move it to and on a timeline as well. I want the security of knowing that where I'm parked I get to stay unless I want to move the home-
Your concern is certainly shared although in the better parks in Florida this is extremely rare. I cover how to asses this in my book on selecting parks.
That happens a lot in Miami and now in Pembroke pines fl where homeowners are only given 30 days to leave and $2,500 for their property by Trinity ........ don't want to say the name of the place.
Another informative video, Russ. Your cost comparisons based on income and available funds to purchase a second home are useful. I recently purchased your book on Amazon, it has a lot of useful information and I recommend it for those considering relocating or "snowbirding" in Florida. Please consider doing some "Top Ten Manufactured Home Communities in Florida" by their respective categories. I think there would be much interest in that.
Thanks, and glad you liked the book. If you haven't already, could you do me a favor and post a brief review on Amazon? Those really help! It's tempting to do "the Top Ten", or "Best Midsized Communities", or "5 Parks to avoid" but unfortunately; I'm not qualified. You see, what might be my idea of a Top park would be based upon a lot of factors specific to me. There are a lot of parks I would not consider that are at capacity with folks who love it there. Best I can do is offer views into as many as I can and the tools needed to compare them for your particular needs.
Thanks Russ. I appreciate your videos!
Glad you like them!
Thank you, Russ. Real good intel and perspective......Please keep making more of these videos....
More to come!
I noticed you'd shown several scenes from Cypress Lakes, which has two golf courses. I was considering moving there, and it's not out of the running. But I think I read, in the comments section of another video that I'm paying for the upkeep of the golf courses, which I won't use because I don't golf, so it wouldn't make much sense for me to move there and pay for activities I'm not going to partake in.
Do you know anything about Juliana Landings in Auburndale? My family and I drove past there about two weeks ago, and really liked the area. I love to fish, and there's a decent sized lake nearby, plus Auburndale is beautiful. We drove through town and I really liked the cleanliness of the park. My wife looked up home prices, and right now, they're within our projected budget.
I watched your other lot rent video, and I had a question. I've seen some parks include water expenses in the lot rent. Do you know if some parks allow for other utilities to be counted in the lot rent payment? Thank you for posting this video. As always, like your previous videos, it was very informative.
It's a mid-sized park (273 lots) owned by SUN Communities. There are a lot of parks this size in that area so be sure to shop around. Older parks that either have their own water plant or were centrally metered often still offer water/sewer included in the lot rent although now a days it's metered and you pay more if you exceed a base amount. I doubt any SUN park has that. Most everything with them is a la carte and added to the lot rent.
Lots of great points in this video!
Thanks!
Great Job! I appreciate all your work and editing with your channel!
I appreciate that!
Thank you for doing these videos. I've watched them all. Wife and I planning to retire to central Florida later this year.
Freshwater fishing is my passion, so I've been investigating the inland MH parks on and around the central Florida lakes. I'm wondering if resale value and ease of selling for our inheritors would be better in a co-op park than a land lease park?
I have no idea how to predict that. I think if preserving value is your primary objective you are better off in neither. Buy something where you own the actual lot with no restrictions. On the flip side, look at California. There is such a shortage of housing that mobile homes worth 50K in Florida sell for hundreds of thousands in land lease parks charging $1,500/mo. So, who knows? I do know there's lots of bargains in parks accessible to great fishing throughout the central part of the state.
@@RussellWatsonFMHL Thank you, we do really appreciate the info you're making so readily available. 👍👍
Yes
Great info as always!
Glad it was helpful!
Thanks Russ, can you share which Lakeland parks you were referring to at 7:18 and 8:20?
7:18 compares homes for sale in Sandpiper Country Club & Shalimar Creek. 8:20 That home is in Beacon Hill Colony
@@RussellWatsonFMHL Thank you Russ. Just beginning my search, this is very helpful!
I'm hearing that lot rents are going up greatly...not good news. What is your take on it, Russ?
In most parks lot rents are in step with or a couple points above inflation. Since Inflation is rising, so will rents. But we are seeing nothing like is seen inother parts of the country with one exception. A couple of the investment groups buying up parks have a new wrinkle - New buyers pay 10, 20, even 30% higher than current residents. Since it's a new lease agreement it is not considered raising a resident's lot rent unreasonably as covered in state statutes. The practice does play heck with someone trying to sell. Watch out for those parks!!!!
Lot Rent Here in Michigan Is Now $1300.00 and Up..... It's can Crazy !!!!
I hope you get a golf course and country club for that! You can in Florida.
The number #1 issue I see is that the Rates keep Rising every year. The only time I stayed in a land lease community was in 2017. The monthly rent was $600 at that time , last time I checked it was around $750. The ONLY good thing was that if a tenant wanted to walk away from their his/her home the Owners would take it and renovate to resell or remove it. #2 The issue of location and offers from Big Developers who want to buy the community from the owner. Then One is given X amount of time and Notice to Remove their home to another location or let the new developer tear it down. I do agree with Russ, it is imperative to find a community that suits your needs. As residents age, ages within the community may lead to big disruptions, such as a new multimillion dollar complex being pushed when the community is tipped Younger or when This may be happening to a resident owned community I am/was interested in as I write. It is one where you own a share. A big Investment group has made a Big Offer and depending on the Vote, the community may be sold and converted to land-lease. Finally with the crazy Florida real estate market in the last 10 years, I have noticed that many 55 year olds are buying homes in the community and working full time perhaps until 67-70 years of age. This trend has I think been accelerated due to the high real estate costs for home ownership and with the rising rents, Insurance Companies bailing out, Taxes rising these 55+ communities are a cheaper option. In the past year home ownership costs have gone up 50% in parts of Florida. I do agree with Russ, it is imperative to find a community that suits your needs.
Some insightful comments. I know of 3 - 4 CoOps either selling to investors or considering it. Something to consider for sure. BTW, that increase in lot rent is under 5% annually. That's a figure I think folks should plan for. Also, the only way developers are supposed to be able to break a lease is if they are using the property for something else. You can't just buy the property and evict everyone to put in new manufactured homes on the same lots. And that sort of buyout and redevelopment is rare in mid to high level parks. Unless it's in an incredibly urban location (Downtown Miami for example) the owners stand to make much more as a MH park.
@@RussellWatsonFMHL The one I was considering as a potential place to check out is in Winter Springs, Florida just north of Orlando. I suspect the park residents are older and a good many inheritors are renting the property creating a perfect storm to sell.
@@Seer645 Well, those would seem to point to the possibility. Not so bad for shareholders although you could easily eat up gains on the share sale in future lot rent increases. But at this point most of us are looking for a stable community to make friends in and enjoy our retirement.
@@RussellWatsonFMHL I agree entirely with the last sentence. But often snowbirds, at least my older friends, all have sold out when they reached a point where they perceived a decline in their health and stayed up north at the end of their lives. I think they did not want to pass on in Florida.
Can you put a prefab home in those mobile home communities?
There are always exceptions I suppose but I've never seen it done. Unless you consider manufactured homes pre-fam - which I guess they are.
@@RussellWatsonFMHL those modern looking prefab homes
You can put brand new manufactured homes in these communities and they sure are modern looking. Take a look at some of the manufacturer's websites listed under buyer resources: www.floridamfghome.com/Buyer-Resources
When you rent a lot, does the monthly fee cover water supply and sewage?
And how about garbage pick-up? Of course, I assume you pay for your electricity and cable separately.
Every park is different. That's why you need a spreadsheet type form for comparing parks. Many older parks include water and sewage where the park either has its own systems or central metering. That said, these parks have almost all added individual metering and charge if you go over a base amount. BTW that spreadsheet is available by joining the Inner Circle.
Russ I recall one of your videos focused on 4 types of communities. Maybe Co-ops, Land Lease, etc. I have been looking for it to re watch it but can't find it. Can you tell me which one? Thanks.
Sorry Joe, I replied last time. Many of my video's cover these topics. You can look through these: th-cam.com/play/PLITxS9iTEF0bKTFFR6d9HDztNbi-J6Rf4.html or these th-cam.com/video/10eCCZjxyJ0/w-d-xo.html
How are these communities after Hurricane Ida?
Obviously the ones in the direct track were hit hard. It destroyed many homes of all types of construction. Outlying communities did well with newer manufactured homes having less or no damage while older mobile homes and R/Vs had more - this is to be expected.
great video!
Thanks!
Any suggestions on rentals of small home/mobile home/tiny home or per-fabricated homes not too far from the Tampa area? I am a retired single man with limited resources to be able to purchase AND pay land rent. Thank you!
You can try the Facebook groups listed in the website. Also you can obtain a land-lease park list for the state by joining my inner circle (free) which is also on the website. Do some google searches under the park names that are in the area. Rentals are pretty scarce and low priced rentals go very quickly. You could also call each park and ask. It may take some looking. www.floridamfghome.com/Buyer-Resources
Hi Russell,
Is there any data on the frequency/timing/contracts regarding raising of lot rents or the selling of entire parks ? This is a big worry for many potential buyers.
Thank you kindly
Yes, and we cover that extensively in our New Buyers Course. In Florida, FS723 parks can only raise lot rent once a year.
Problem is prices have skyrocketed in Fla. to get a nice doublewide in them golf communities it’s gonna cost you a lot more than 124k!
Not so....as an example, there are six homes in Schalamar Creek under 124,000 for sale at this time.
@@RussellWatsonFMHL I’ll have to check it out…they must be small we are looking for something large at least 1700sq ft.and actually like cypress lakes better…can you do a review on the Hampton’s that’s one we have not looked at yet.
There are very few homes for sale in Cypress Lakes but there may be more soon. According to a news clip I read the park is up for sale. The Hamptons is owned by SUN Communities.
@@RussellWatsonFMHL is that a good or bad thing….lol
Do you have any info on the Ormond beach , Flagler beach area
Join my Inner Circle (free) and download a complete list for the state. www.floridamfghome.com/Buyer-Resources
Last year bought a used 1988 manufactured home for my younger sister age 68 in a gated senior living park in Haines City. At the time of purchase the lot rent was under $500. In Jan. the lot rent was raised to around $600. This put my sister and her husband in a very tight financial bind with their limited SSI. Does the law permit increases to rent that are this extreme? They are hoping to sell the home and look else where for a more affordable park.i Any suggestions is appreciated.
I'm afraid you would have to consult an attorney for legal advise. The responsibility of rent negotiation falls upon the HOA in the community. What is the name of the community and who is the park owner? You also don't say when the time of purchase was. I sent a buying tip to my Inner Circle on this recently. It wars that if you assumed a lease at less than market rate for the park, they have the right to increase it (no matter how much that is) to market rate at the next renewal of the annual lease. But, they must disclose this at the time of sale.
@@RussellWatsonFMHL thank you for you swift reply. The park is The Landings at Lake Henry don't know who the owner is, but I think it is Sun Communities Inc.. We purchased it last Aug.
@@1sacoyle Then yes, you likely fall into this scenario. While I don't recommend SUN Communities generally, I bet they followed the rules and if you look in your paperwork from the closing , you should see a statement that the lot rent would go to market Jan. 1 .(and how much that would be) The good news is that should be the last such massive increase you see if you stay there. While not cheap, SUN & most other major park owners have kept their increases a percent or two above COL. That will be quite a bit higher next Jan I suspect ,as COL is very high. But at least it will be matched by SS increases. Looking at rents there for 2020/2021 that increase seems reasonable. And there are many homes in there with lot rents above $750. A plus is the park is unlikely to be sold; where as a much cheaper park, that seems a good cost saving now, stands a very high chance of being sold to less scrupulous investors down the road. This whole set of circumstances is one of the reasons I started Florida Manufactured Home Living. People need more education on these deals before they dive into the pool.
I live in Haines City.. which development was that? Curious we are looking at downsizing soon
Hello is there a land lease community RV park?
There are a lot of RV parks that have land lease homes and long term leases for RVs.
Thanks for your videos. I don’t know much about 55+ communities but I am intrigued. If a couple wants to move to one of these do both individuals need to be 55+ or only one? Or does it vary according to the community ?
Only one need be 55. See my video on this topic for in depth info on 55+: th-cam.com/video/h-dS6CxVjN4/w-d-xo.html and for a complete guide to selecting communities and evaluating the lifestyle see my book: Retirement in Florida - Manufactured Homes & The Land-Lease Option
amzn.to/3c3UMPJ
Things are potentially different than they used to be. Right now there are still some 55+ communities with mobile/manufactured homes that are cheap and have less than $800/ month lot rent.
However, there are no guarantees that the lot rent won't go up. Even in sleepy old mobile home parks in North Florida, we've had investors buy the park and double the lot rent.
The Florida HOAs are something else, too. Some HOAs are fine, but some are INCREDIBLY restrictive. The HOA for The Villages will fine you every day for items not in compliance including paint trim color and yard plants, etc. And, if you don't pay your HOA fees/ fines, the law has been that the HOA can take your property.
So, keep your eyes open before you sign anything.
Can't say as I have seen any park double. In fact 11% is the worst I have seen. That's one advantage to the parks already owned by the big players.
I am wanting to relocate and retire to Florida. I am disabled in a wheelchair but I do not want to live in a community with lot fees. Are there any senior developments that do not have lot fees? I so not mind paying a yearly HOA
Here's a series of videos on communities and situations that are not land-lease (no lot rent) Most HOA fees in Resident Owned Communities are monthly also BTW. th-cam.com/video/10eCCZjxyJ0/w-d-xo.html
Do all land lease lots require applicants to make three times the amount of rent and refuse cosigners?Also, I am reading that lot rent is becoming higher and higher and some folks can't make it with their budgets.
No, every park is different in what they require. Some of the larger owners may have standardized their financial requirements. Frankly, no more than 30% of your income for payments is a generally accepted definition of "affordable housing". I have never heard of "co-signers". Lot Rent, like gas, food, insurance - you name it - are all going up faster than many folks can afford. Most reputable parks raise their rent in step with some measure of cost of living but not equal to it. We don't generally see the outrageous increases seen in other parts of the country. That said, there are some more predatory investment groups buying parks in FL and raising rents in very large amounts in an attempt to repay the large loans they get (often with help from Fannie Mae or Freddy Mac) to buy parks well above market value. Today, more than ever, it pays to shop around and utilize educational insights such as we provide on this channel, on the website, and in my book.
Pine Lake Village in Jensen for example, requires a minimum of each applicant to make $30,000 annually as their income. We are willing to buy the manufactured home with cash. However, with their lease agreement we were turned away. When we asked if we can co-sign for my mom, they stated they no longer accept co-signers. We tried another place in Vero Beach that wasn't even 55-plus same scenario, but they wanted three times the rent. They also would not allow co-signers.
@@RussellWatsonFMHL I'll continue searching for affordable living if it's really out there, however I am a bit discouraged.
Try calling some of the agencies that service areas of interest - Like Four Star Homes. Their agents know the area parks and their qualification policies. That said, the very term "affordable living" means just that; the resident on the lease needs to be able to afford the payments and upkeep. No-one likes eviction and a park's first line of defense is gaining some assurance the person legally obligated to pay the bills can afford them. There are parks that are beyond reasonable in that regard and others that do everything on a handshake. Most corporate owned parks will require background checks and financial backup showing you can afford what you are asking to contract for. Unfortunately, many still equate mobile home parks with cheap living and, at least in Florida, this is no longer the case. It is cheaper than many other options, like rentals, but it's no longer an alternative to subsidized low income housing.
Hey Russ, I have been looking for a list of ROC's in the Lakeland / Winter Haven area and have not had much success. Is there a link to this type of location specific info?
I really enjoy your videos! Thank you for your time.
You can request a statewide CoOp list by joining our Inner Circle. It's Free! www.floridamfghome.com/Buyer-Resources There may be other ROCs, such as subdivisions, but lists are not readily available. Check Real-Estate listings in the area for manufactured homes.
@@RussellWatsonFMHL Thank you for your fast reply Russ!
I have joined and now I begin my search...
Keep up the great work you share.
Because some of us can't afford $300,000 for a house.
You can get a 2/2 Condominium 55 and a older community for $110,000 and hoa for $400 almost anywhere in Florida.
@@bettyb1581 Can you give me examples? That seems to be a reach right now with real estate being so high. I'm interested in the Lakeland, Winter Haven area.
@@SB-mw1bg I'm not in the Lakeland area. But in Broward County a friend of mine purchased a 2/2 for $75,000 and he said they had a few for for less than $110,000. My association is only $225 a month. But I don't live in a retirement community. With these rising prices I'm staying at my condo my mortgage is $550 and association $225 and I have a 2/2. I'm in Miami
@@bettyb1581 I definitely won't go down there. Too many horror stories
@@SB-mw1bg there are good and bad places everywhere even in Lakeland.
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Are there any communities with flexibility in the age? I love the idea of this but I’m on,y 51. I am a single woman with grown children. I’m currently living in Tennessee but I am from Florida. I’m trying to find an affordable way to get back home where my grandchildren live. Everything I see is 55+ by just wondering if there are any 50+ communities or if maybe the 55 is a little flexible.
The 55+ designation requires 80% of the households in the park to have at least one member 55 or older. It is up to the park owner and prospectus documents to decide what to do with the other 20%. Some keep it at 55+ - others have various ages they set as a lower limit. See this video for more on 55+ communities: th-cam.com/video/h-dS6CxVjN4/w-d-xo.html The policy regarding the 20% who do not have to be 55+ varies widely from park to park and is sometimes left up to the park manager. If you see parks that say something like 45+, those are 55+ parks that are allowing (some) younger people. Another scenario that may cause an exception to be made is when you are buying a home (mostly new homes) directly from the park. To get a definitive answer you must call the specific park. Parks owned by the same outfit can and do have different policies. There are also many all-ages parks. Some are quite affordable depending upon where you want to locate.
Lot rents can escalate and surpass people's ability to afford the home anymore and they are stuck. Putting yourself in a place where you have no control over lot rent is a bad idea IMO.
You really don't have "control" no matter where you live. I know several people who are being priced out of conventional homes that were long ago paid for. But property values, and hence taxes, skyrocketed over the years to a point where they are so much that they can't afford to keep the family home. Most folks in Florida who have trouble with lot rent increases were marginally able to afford it when they bought in. If the park was way underpriced, they assumed it would always stay so. Knowing your budget and planning on lot rent increases are a part of what you need to consider if a land-lease park (or CoOp) otherwise meets your needs.
With lot rot rent you own only what's in side the walls. If the property owners decide to sell you lose .
That's certainly true and a (small - in Florida) risk. Some parks are a much greater risk than others - something I address in my book. There are a few that close every year but most return more to investors as parks than can be earned from the land otherwise.
The costs of lot fees is ridiculous. It's all about the money, or do you think it really costs $450+ for a mobile home to just sit on a lot?
Ultimate S & S , we each have our goals and ideas on what is worth our hard-earned assets. There is no question this does not meet everyone's needs. The idea is to present enough information that you can know the alternatives and make an informed decision. Glad we can help you in that regard. Perhaps a home on private land is more your cup of tea. See my latest video: th-cam.com/video/RI_l8eFGOd8/w-d-xo.html
With mobile home parks raising lot rents up to $1500 a month, its in nobody's interest to pay lot rent.
I have seen a few parks that high. And I'm sure many that thought they could easily afford a particular park are disappointed when they learn they can't. But each of us has our goals and personal financial situation. The price of eating out has skyrocketed and I can tell you I don't do so much anymore. But there certainly are still many that find it in their budget or rearrange their financial priorities so they can, high prices or not. The key is to focus on what will work to fulfill your dream and meet your needs. If lot rents seem too pricy for you there are lots of other options. In my latest video, Zephyrhills, I explore some Resident Owned Communities (ROCs) and another idea, Park Models. Either can get you a Florida home at much lower monthly costs. Check it out: th-cam.com/video/c2Jheq1ktm0/w-d-xo.html
Russell, how do we directly contact you? I did not see a phone number on your website. When I clicked on "Contact Me," some kind of error message appears saying "Your information is not private."
Sorry,
I do not sell homes or offer personal consultation; preferring to reserve the time I have available for producing educational materials. With over 22,000 subscribers, I would be quickly overwhelmed if I tried. If you have a specific question related to a video, just put it in the comments so all can benefit from the answer. If you are looking for general guidance on choosing a community, may I suggest my book: Retirement in Florida - Manufactured Homes ; The Land-Lease Option.
amzn.to/3c3UMPJ
To download community lists, join my Inner Circle (free)
The website offers this and many more resources for finding, purchasing, and maintaining the right home for you:
www.floridamfghome.com/Buyer-Resources
why pay lot rent ? because it's cheaper doesn't tie up your cash and leaves you with flexibility not trying to sell land and nobody wants it. that's why