How to Sell a Mobile Home Park: Preparing Buyers and Their Lenders
Many buyers of a mobile home park finance part of the purchase, so a sale depends not only on finding the right buyer but also on that buyer’s lender being comfortable with the park. Owners who want to sell a mobile home park can improve their chances of a smooth closing by preparing the lot rent roll, leases, home titles, utility records and permits that buyers and lenders will want to review.
This article is general guidance for owners of existing, operating mobile home parks. Every sale is different, and some states have resident notice or opportunity-to-purchase rules that apply to park sales. Sellers should work with qualified attorneys, accountants, tax advisors and, where appropriate, brokers or appraisers. Nothing here is legal, tax or financial advice.
Start Preparing Early
Time allows an owner to clean up records, resolve title questions on homes, address deferred maintenance and gather permits. It also allows counsel to determine whether any resident notice requirements apply before the park is marketed.
Organize the Financial Records
- Several years of operating statements and tax returns that reconcile with each other
- A trailing twelve-month statement and bank statements
- Utility bills paid by the park and amounts billed back to residents
- Documentation for any personal or one-time expenses
- A complete schedule of existing debt
Clean, consistent records help buyers and lenders verify income. Our guide to mobile home park valuation explains how that income is evaluated.
Reconcile the Lot Rent Roll
Buyers will compare the rent roll to leases and deposits. Resolving disputed balances, documenting delinquencies and confirming that charges match leases can build confidence. See our article on the lot rent roll.
Document the Homes
Prepare a list showing which homes are tenant-owned, park-owned or abandoned, with titles for park-owned homes and records of any steps taken on abandoned homes. See our article on park-owned homes.
Gather Utility and Infrastructure Records
Buyers and lenders will ask about water, sewer and electric systems. Permits, testing records, repair history and any engineering reports help answer those questions. Our guide to mobile home park utilities explains what they review.
Confirm Zoning and Permits
Zoning letters, historical approvals and operating permits can reduce uncertainty, particularly for parks operating as a legal nonconforming use. See our article on mobile home park zoning.
Understand What Lenders Need From the Seller
The buyer’s lender may ask for information only the seller can provide, such as operating statements, leases, prior third-party reports and access for appraisers and inspectors. Responding completely helps keep financing on track, though timing depends on the lender and the transaction.
Consider Deal Structure
Sellers should consider whether they would accept part of the price over time or allow a buyer to assume an existing loan. See our article on mobile home park seller financing.
Communicate Carefully With Residents
Confidentiality matters, but so do any legal notice obligations. Counsel can help balance the two and plan how residents will be informed about the new owner and where to send payments after closing.
US Professional Funding helps qualified buyers finance the acquisition of existing, operating mobile home parks, which can help sellers reach a closing. Learn more about our mobile home park acquisition financing.
