Investing 101: How to Screen Mobile Home Park Residents for the Long Term

by mobilehomegurl
in finding buyers, investing 101, screening buyers
on March 1, 2019

When it comes to filling mobile homes, you don’t want to fill them with just anyone. You want to put the right types of people in. Ones that can pay. And won’t bother you. Or the park.

In order to find mobile home park residents for the long term, you need to properly screen. Ask the right questions. Listen. Be observant. And above all, be patient.

Here I’ll go into what I look for when screening mobile home park residents for the long term:

Know your ideal candidate

Before even buying a mobile home, you should know what types of people the park attracts and the types of residents already living there. Usually, this is an indication of the types of applicants you’ll receive.

(Note: Even if you don’t buy in a mobile home park and invest in land, the area and its residents will give you an idea of the demographics and the population.)

Personally, I work mostly with young families. These are the types of people I feel comfortable working with and the types of people that are attracted to the parks I buy in.

Going in, ask yourself the question: Who is my customer?

Only deal with people that you feel comfortable with and work well with your personality. Otherwise, you’ll constantly be having issues down the road. I found this out the hard way.

Take the time to properly screen over the phone

When it comes to filling mobile homes, most of the leg work can be done over the phone. Take the time to properly screen prospective applicants over the phone.

Ask the right questions. Listen. And notice how people react when you answer.

Don’t just schedule an appointment with just anyone. Make sure the person on the other line is truly serious. This means being able to follow directions and meeting on your time, not theirs.

Usually, serious applicants are local to the area and will tell you why they’re interested in your home. They already live close by and are familiar with the amenities in and around the park.

In my experience, those who are not so serious are unfamiliar with the area and the park. They tend to ask questions about the types of businesses and amenities around the park. Usually, these people are just lookie-loos.

(Note: If you’re interested, I write more about the types of questions I ask and my screening process here. Thanks for reading!)

Schedule Group Showings

When I first started out as a mobile home investor, I met people interested in the homes I had on the market individually. While this was a good learning experience giving me a chance to interact with people on a one-to-one basis, there were appointments when my time was wasted.

I remember meeting the wrong types of people despite how I interacted with them on the phone. And then, there were people who confirmed the day of the showing. Though, they never showed up. Sometimes I had to show homes two hours from where I lived. Not the best use of my time.

So I switched to doing group showings (aka open houses). It definitely saved me both time and money!

When holding an open house, I’d schedule it once a week. Usually on a Sunday afternoon. This was the only time people could come by and take a look at the inside of the home. No exceptions. Period.

Yes, there were people who protested. Those who said they were really interested but could not make it. Unfortunately, I told them that would be the only time. Many of them never made it.

On the other hand, there were those who adjusted their schedules accordingly. These people took the time to make the open house and view the home. Some took applications. And even others, eventually became my residents.

(Note: There are people who just ask for an application and want to apply. Don’t take these folks seriously. Usually, they are running away from something. Only make applications available at the open house to folks that actually show up!)

So to save yourself time (not to mention a lot of gas), schedule group showings. On your own time.

Take your time when running applications

Once you’ve got a few candidates, now is the time to run your applications. Verify everything.

If there are items that are left blank and/or unanswered, this is a red flag. Those who cannot properly fill out an entire application have not been the best candidates, in my experience.

You want people who can follow directions and are easy to work with. This means being able to get the information you need.

Now some real estate investors have asked me the question, “Why even have your own application?” There are some investors who rely on the mobile home park’s application when screening residents for their homes.

Sure, the park has their own screening techniques. Though, they may not necessarily fit yours.

Having prospective residents go through the same application process twice (yours and the park’s) shows you the people who are serious versus those who are not. Plus, it gives you an idea of how these people work with you before you make a decision.

The objective (i.e. job, income,etc) is one thing. But the subjective (i.e. personality type, ability to follow directions, etc) is something else.

Before anyone can move into my homes, they must pass both my application and the park’s application. First, they fill out my application. And then if they pass, they fill out the park’s application.

Keep marketing and showing the home

So you’ve got a family who’s passed the application process for both you and the park. Now it’s time to celebrate, right? Not quite.

Just because you’ve got someone who’s passed both applications does not necessarily mean they will be your resident. People change their minds. Things happen. I learned this the hard way.

On a home I filled recently, this happened to me. There was a family who filled out my application and the park’s. They passed on both ends and seemed easy to work with.

So we proceeded to have them fill out the park’s paperwork and then mine (my normal procedure).

But the day they were supposed to fill out the park’s paperwork, the husband called me to say they changed their minds.

Apparently, his wife thought the home was too old. He told me they were sorry but just wanted to let me know.

So I called the park manager right away. The park manager said they’d call the family to see what was going on. She left a message but they never returned the park manager’s call.

Though I was really down, I continued to market the home. And eventually found a nice family for it.

Until your prospective residents sign your paperwork, the park’s paperwork and officially move in, you still have an empty unit. Continue to market the home.

Be Patient

I’ll admit, it takes me awhile to find the right residents. On the last home I filled, it took me four months. But, it paid off. I found a good family on a home that will cash flow for years.

When going through the motions of screening prospective residents, keep the big picture in mind. Would you rather fill it right away with the wrong types of people? Or let it sit empty until you find the right ones for it? I’ll let you decide.

Every time you attempt to market and fill a home there will be something different. Things come up. Situations change. People change their minds. The best you can do is continue to find the right residents.

(Note: Regarding marketing techniques to fill mobile homes, I write more about what I use here. Thanks for reading!)

Conclusion

Let’s face it: Real estate investing isn’t easy. If it were, there would be more successful real estate investors than unsuccessful ones. But that’s not the case. It’s more the other way around.

(Note: If you’d like to read more about what it takes to be a successful real estate investor for the long term, I wrote more about it here. Thanks for reading!)

Like anything, in order to get good you need experience. And you need to learn from the experiences you have. This includes screening prospective residents.