Money Grubbing Jerks - Posted by Kate

Posted by The55+GuyFromAZ on November 08, 2003 at 11:31:12:

Your missing the point Doc… it’s not about the tenants, it’s all about the market.

My park has been at 100% occupancy almost since I bought it, and I’ve increased lot rents to market as necessary. I have no problems in my park, and very low expenses… which is much more desirable to me than the senerio that Joe is suggesting.

Just for referance (regarding current park pricing)… I had a 190-space park (with 20 vacant lots and 51% of income going to expenses) offered to me this week, at a 7.5% cap… a $3MM asking price… and a cash-on-cash return of 5%.

My local bank has no-risk/no-hassle annuities at 8%.

Taking pot shots at me… weather for fun or spite is pretty childish behavior… your lack of understanding (or maybe it’s a desire to just ignore) the current/future problems of the manufactured home industry, being created by today’s park owners/sellers and especially the REIT’s is also apparent.

If you can’t comment intelligently, there’s little point in posting at all.

Money Grubbing Jerks - Posted by Kate

Posted by Kate on November 05, 2003 at 17:20:26:

Okay, okay I am a big enough person to realize that all MH park owners are not money grubbing jerks and I knew this from the start. I had just read a couple of your messages posted and realized that a couple of you are. I was outraged by those messages and some of the responses. Like how to weasel a deal from the old man and how to increase income by raising lot rent every year to the max allowed. I like the park that I’m in, I get along with my landlord, and yes it is cheaper than renting but the truth is I am not getting a reasonable rate. Many “people” aka money grubbing jerks believe that I am getting a deal because they charge the same as all the other MH parks. Although they know they could easily run a MH park and make a great living if the rates were lower than they are. Just because everyone else is charging more doesn’t mean you have to. I do not “owe” anything to my landlord this is a business deal from which we both benefit. I am 24 and I have rented at three previous places, it might just be a coincedence but all of my landlords including the one I have now are quick to take your money but do not make any necessary repairs and raise the rent every year. The world is not perfect but if people will take the first step to do right instead of following all the wrong-doers this world would be a better place. To those of you that are caring people that try their best to do right for their clients I applaude you! It’s people like you that make this world better. I do not expect to live in this park for free, but I do expect to be treated fairly if I am to pay lot rent every month and one thing that is not fair is to increase the lot rent consistantly every year for the sheer reason to make more money. Anyhow I do wish you luck in making others happy which in turn will make you happy too. Do onto others as you would have them do onto you.

Re: Money Grubbing Jerks - Posted by Chris B.

Posted by Chris B. on November 16, 2003 at 09:46:16:

“I do not expect to live in this park for free, but I do expect to be treated fairly if I am to pay lot rent every month and one thing that is not fair is to increase the lot rent consistantly every year for the sheer reason to make more money.”

Have you or your husband ever asked for or received a raise where you work. If so, you are money grubbers as well!

Re: Money Grubbing Jerks - Posted by Sean

Posted by Sean on November 13, 2003 at 15:09:05:

Kate,

There is an unfortunatley truth to capitalist societies, that being those at the lowest rungs do have the hardest times, from a philosophical and economical perspective.

The less you make the more as a percentage of it you will have to spend on neccessities, food, shelter etc. And generally those who make the least, have the least amount of education and experience (worldly) to pull from, putting them at a further disadvantage.

Now combine this with an artificial floor in the housing industry created by Section 8 and other assistance programs and you don’t really have true free market economics going on. There is no real downward pressure on the low end in most modest markets, because if Sec 8 is going to pay 300 for a 1 bedroom, and nearly all places have sec 8 shortages, 300 is going to be the lowest you are going to find a 1 bed, period. Even though you as working poor not on assistance may be willing and able to pay $250… you likely won’t find it.

Its not a coincidence that the difference in rents in the bad areas in most cities isn’t that much less than it is in the nicer areas… and its not simply a matter of “true market” forces.

The same is true in food, if food purchases are subisidized for the poorest say with food stamps or otherwise, who can claim that true market forces exist to keep prices in check? IF you think a loaf of bread is only worth .50 and not $1.50 doesn’t matter, because uncle sams subsidizing the rest of the poor to the $1.50 price… so downward pressure is minimized.

So housing is one area, where frankly, being in the lower end of the economic ladder is definately a place you will get short end of shaft vs those higher up.

Now this does not mean that mobile homes are evil, or parks are evil or anything like that. Mobiles are part of the housing industry like anything else and they serve a market and a need like anything else.

Lot rents are going to go up every year, almost guaranteed, just like rents go up on homes every year… and yes, generally, we landlords do raise our rates even if our underlying costs don’t go up yearly if the market allows it, which it generally does. Do I think lot rents in places are rediculous? In some places yes I do, but that’s what the park owner can get for it, so be it.

I don’t begrudge park owners making their buck, lord knows I wouldn’t want their jobs… and no denying some of them are the MH equivalent of slumlords. but they aren’t all out to getcha… and at the end of the day, voting with ones feet is always an option if you can find someplace better, or cheaper.

Re: Money Grubbing Jerks - Posted by ecb

Posted by ecb on November 12, 2003 at 21:06:46:

Well, I’m not sure what your situation is so I cannot say too much.

I will tell you this. First, as others have noted, costs DO rise every year. I’m sure you have noticed this as well. Painfully, it seems to be in areas we have modest control — taxes, insurance, etc.

Second, this is a free enterprise system. People charge what people will pay. It’s pretty simple…you charge too much…it goes vacant. It’s supply and demand. Obviously, you believe you are better off staying where you are at or you would move. However, I doubt moving will costs less than the amount you are talking about.

Third, I would suggest you use this as a learning experience. Perhaps try to replicate it yourself.

Finally, I will tell you that some renters – not all – believe that every dollar you give the landlord goes in his/her pocket to spend on whatever they want. What YOU DON’T SEE is the outflow of cash that goes along with the property. Trust me, it takes a few mobile homes before someone can “retire.”

So, you may be right – he’s a money grubber — or you may be wrong. I don’t know. The point is that you choose to live there and, for whatever reason, have agreed to the amount. You don’t like it, then move. However, I would again urge you to look at it from a learning standpoint, get to know him, and see if perhaps you might be able to, at some point, be a landlord yourself.

I still have a house payment and it - Posted by Philip

Posted by Philip on November 05, 2003 at 22:13:23:

goes up EVERY year.

Re: Money Grubbing Jerks - Posted by Tim

Posted by Tim on November 05, 2003 at 20:36:03:

I just have two questions. Who are you to tell me what is a sufficient rate of return on my investment of time & money? What makes you think that if I am trying to buy a property I should pay the seller whatever they are asking? I’m not trying to be a smarta**, I’d really like to know.

Supply and demand - Posted by Philip

Posted by Philip on November 05, 2003 at 19:48:03:

is a reality. If your landlord gets unrealistic, no one will move into his park. I work in one that I can’t seem to sell a home in…because he is $35+ per month higher than everyone else. And he charges $20 more for pets instead of the standard $10.00. He begs me to move mobiles into his park…but no one wants to buy them…so I don’t do it.
It is probably easier to save the money some other way…other than moving. And just let the guy grub for more money and slowly loose tenants.
Philip

Re: Money Grubbing Jerks - Posted by Mike

Posted by Mike on November 05, 2003 at 19:33:56:

Kate, i hope your landlord is’nt holding a gun to your head to make you stay in the rotten place that you described. for your information landlord do have to pay propety taxes, insurance, maintenance,material,management and of course like evertything else, it cost more each year to keep the business running. just like you can’t buy a can of coca cola for 25 cent no more. above all else he has to deal with tenants like you. there is plenty of places to move your home, I’m pretty sure your landlord feelin will not be hurt if you left his park. now if you were wise you would’nt be in the situation your in are ya?

We have the absolute perfect right… - Posted by joe_cfl

Posted by joe_cfl on November 05, 2003 at 18:38:26:

to raise rents as high as we care to. This is America. There is nothing and i mean nothing wrong with profit. Look at bill gates and microsoft…look at oprah…look at eminem and 50 cent. If you don’t like the rates, move to where you are comfy. This is not a religious experience or a social experiment. This is a business and we owe ourselvges a superior return on our money. If you don’t believe this, you need to move elsewhere. These are defining principles that seperate us from the rest of the world…we love money and all it will buy. we are capitalists! There is no nice way to voice my opinion…many folks are becoming very wealthy off parks now…great for many years we went broke! don’t criticize me compete with me . Buy your own park and give reduced rent for the less fortunate…will get you broke fast. i own my park free and clear and i won’t get shaky until my park is 60% empty…i only need 23% full to pay bills and survive!Might raise rents next year too! No one knows how high rents will go until they raise them and do so again…

Re: Money Grubbing Jerks - Posted by kris (wi)

Posted by kris (wi) on November 05, 2003 at 17:48:13:

If you have a crappy landlord that doesn’t fix problems then I can understand your anger. But what’s wrong with raising rents just to make a buck? I thought we lived in a capitalist society. Why do nurses get paid so much? They make more than I do and jack up the cost of health care.

And yet you still live in that park? Prices are determined by the market. Parks and landlords can only raise rents to a certain level until people start moving out and nobody moves in. Maybe you should move.

Re: Money Grubbing Jerks - Posted by Philip

Posted by Philip on November 05, 2003 at 19:43:32:

Mike,
I wouldn’t accuse her of things you don’t know to be fact. Maybe she is a good tenant.
Your explanation of economics was good, but your dig at her…well I don’t see why that is needed.
People get in situations that are not of their own doing, sometimes. Maybe a mobile in this park is all she could afford at some time, even if she wanted to do something else. You know it cost’s 2k to move, and not everyone can come up with that much money.

I have a girl cousin who makes 60k per year working for the Missouri state auditor, and SHE lived in a mobile as her first home. Now, she lives in a $300,000.00 home. But you gotta start somewhere.
My opinion,
Philip

Re: Money Grubbing Jerks - Posted by tony tulloh /florida

Posted by tony tulloh /florida on November 05, 2003 at 20:52:48:

money grubbing jerks? what a crazy but true picture on how park owners are viewed… kris was right, everyone else can charge more…but when parks increase rents,they are jerks…i have a friend / mentor that uses the phrase: there are no gates at the entrance to park, move out if you feel the way you do…

great site ! money grubbing jerk in florida

Re: Money Grubbing Jerks - Posted by Mike

Posted by Mike on November 06, 2003 at 06:29:56:

Phillip, for one thing I would’nt go online calling all landlord money grubbing jerks. its these money grubbing jerks that allowed her to a reasonable place to call home. admit it she upset that she have to pay rent and very unhappy where she at in life. i work hard to be where im at right now in life. i’ve rented homes before and never had problem with landlord rising my rent, because i understand that my landlord have to make money to keep on renting to me. thats life get it or get over it, move on.

Re: Money Grubbing Jerks - Posted by Bob (NJ)

Posted by Bob (NJ) on November 06, 2003 at 11:00:56:

You Money grubbin Jerks should start a union in your respective state. Get together, find out through surveys how much your tenants could pay, and raise the rents to that level. This way Tenants could try to move but they would pay the same rents every where else.

i really like this idea - Posted by joe_cfl

Posted by joe_cfl on November 06, 2003 at 20:56:49:

you are probanly just teasing but actually this is a good idea. I now charge 420 per month. A larger park down the road charges 560 per month. tomorrow i will send out a registered letter to my 44 tenants that in june,04 rents will go to 550 per month. will probably lose 6 or 8 tenants…so what! By the end of yearwill be full agin’! This is a really good idea you have…will post in june and let you know how i did.
It really is all good Bob!

Re: Money Grubbing Jerks - Posted by Bill

Posted by Bill on November 06, 2003 at 13:27:03:

Haha!!! What a great idea! Like they do with automobiles and every other item for sale or lease in the world… Great idea Bob! (just trying to insert a little levity here…)

31% rate increase in 1 year. Think Kate is right - Posted by Sean

Posted by Sean on November 13, 2003 at 15:16:02:

That is absolutely not something that can be justifiable unless you added some amazing ammenities in the last year… definately sound like the kind that gives everyone bad name.

IF you can get it fine, frankly I would just start new people out at the new rate and raise the reliable old timers more modestly… as keeping good tenants is far more important to long term viability that jacking them IMHO.

say little joe, your parents… - Posted by Greg Meade

Posted by Greg Meade on November 07, 2003 at 06:53:33:

should have named you richard because you are a…well you see my drift. Don’t antagonize these folks. You are a very good landlord and have a beautiful park…you are just a greedy little …well you know.
The problem is is if everyone thinks like you, what happens to low cost housing? housing for the elderly? i have done well over the years by providing rentals for these people. I like the idea of making huge money on the resell of my park. i cringe at having to screw people to put afew bucks in my pocket. How much is enough joe? Your pal greg!

31% or 91%…who cares? - Posted by joe_cfl

Posted by joe_cfl on November 13, 2003 at 15:56:20:

bottom line i can charge ANY amount i want. people don’t like it, they can move. got the very real pleasure when 19 to legally kill about a hundred young folks in vietnam so folks like you can have (and voice) an opinion. would gladly do it again…all that humidity made me cranky. folks don’t like my rates, they can move next door and pay even MORE rent. it is a beautiful situation…wish i had more spaces! i can actually blame these increases on the large corporate park next door, " these bad people raised rents to 560 per month so now the county appraises my park at 560 per space per month on appraisal so i have to raise rents to that level" im loving it! Talked to PM at this park and their target is 88% occupancy with rents at 780 in 3 years!!! its the money, bay-bee!