What Will Break
Editor's Note: Welcome to the companion article to Episode 6 of the MHP_IRL Podcast! The purpose of this article is to expand your podcast listening experience with additional content. Companion articles unpack more significant concepts that we talk about during each episode to give you practical and actionable advice.
No matter what you do, things are going to break at your mobile home park. In this episode, you get actionable advice on how to plan and address unexpected issues during ownership.
"The first thing that's guaranteed to break? The rumor mill."
Of all the things that will break when you’re a park owner, trust is the biggest one--let me explain.
Here’s a hard pill to swallow: The people in your park and community are going to talk about you, and it's not always going to be good. The gossip can get nasty--whether it is true or not, it all comes with some liability to you as the park owner.
"Your contractor is dealing drugs."
"Your employee touches children."
"My neighbor is stalking me."
Yes, we’ve heard it all.
And when hearing accusations like this, Ian and I have to take action.
So what did we do?
We investigated each claim thoroughly.
The conclusion? We found zero evidence.
The response? Almost identical in every case.
We’d bring the concern back to the tenant, to assure them that we had looked into it, and when confronted with our findings their response was something like...
"Well, look at him. Doesn't he look like a guy that would do something like that?"
The lesson learned here is that people are going to make outrageous claims. It's in their nature, people can be short-sighted and self-interested.
And that’s not going to change.
They will do and say whatever they feel at that moment, and they're not always going to think about the long-term consequences.
That's where you come in.
You need to think ahead, thoughtfully plan, and practice a little damage control when the rumor mill gets started.
You can't stop rumors, but you can mitigate them. Here are some tips to help:
1. Find the connectors and influencers in your community.
Your MHPs are microcosms of the larger communities we’re all a part of. They’re the places where people live, work, and interact everyday. And like any other community, you’re going to have your influencers.
Your tenants may not have voted for an official mayor of the community, but you better believe there is one.
You'll find that only a handful of people have all the social status and influential trust amongst the community. Discover these people and treat them like gold because they wield all the power.
I've found that the person who first exposes an individual to information stands the best chance of long-term influence over their perception. What makes influencers so valuable is that they’ll help you control the way that information is shared with the rest of your tenants.
And controlling the narrative is a powerful tool for keeping the rumor mill at bay.
2. Deliver consistency
Once the rumor mill gets cranking, emotion has a habit of trumping common sense.
But just because your tenants become reactive, doesn’t mean that you have to.
Be consistent with your actions and messaging. Demonstrate at all times an air of confidence and competence and it’ll put your tenants at ease.
For example, Ian and I have a motto of safety and cleanliness--and we emphasize that in every interaction with our tenants.
When conflict rears its ugly head, our tenants pick up on the way we carry ourselves, and the consistency of our message.
Regardless of what you say, your behavior should be saying “I’ve got it under control, you can trust me”.
3. People always remember how you made them feel.
There's a quote by Maya Angelou that I carry with me.
"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel." ― Maya Angelou.
Your tenants are going to disagree and in those situations they may try to use you as the middleman. I recommend not getting involved in any capacity unless there is a direct violation of your motto or code of ethics.
So within our personal motto, Ian and I only respond to tenant disputes if there is a direct threat to cleanliness or safety. Everything else is just noise. Sticking to our motto not only delivers a consistent message to our tenants, but it also protects our energy as park owners and saves us from getting involved in every tit for tat spat between residents.
If you do need to get involved, make sure that your tenants feel heard and that their concerns are important to you. You can get a long way by simply validating someone’s feelings.
Contracts Will Break
When people want to break their contracts, it can get messy. There are a few ways to avoid this issue successfully:
Most preferential option - broker a sale between the person moving out and someone who wants to move in.
This is where your influencers are going to play a huge role, and the reason that you should treat them well. Ian and I have had many influencers step in and help us broker favorable deals with tenants.
2. Your next best option - Buy the home from the tenant.
You have the upper hand in this situation. Typically, people who are in a position where they can't afford a few hundred dollars in lot rent are in a place where they can use some serious cash.
A word of caution here:
Just because you have the upper hand does not mean that you should expect these situations to be easy. Remember, you’re dealing with a person who has found themselves in dire financial straits, this can bring out the worst in everyone. Exercise some compassion and patience in these situations to reduce stress and tension for all parties involved.
3. My least favorite option, but it is an option - Tow away.
There are mobile home movers that can legally tow a mobile home away like a car. I’ve found that the presence of this option is actually more effective than the option itself. When you’ve found yourself with a tenant who has dug their heels in during a negotiation, it is a helpful reminder of the fact that they cannot stay on your property indefinitely without meeting you in the middle. Usually mentioning a tow away is enough to get your tenant to play fair in your negotiations.
Mobile Homes, Utilities, and Everything In Between Will Break
Things are going to break, it’s not a matter of it, but when. And when it does happen, it’s important that you’ve built a team of trusted individuals to fix the things that you can’t do yourself. You need contractors you can trust, are knowledgeable, dependable, and aren’t going to gouge you on price. There's no secret or shortcut to finding good contractors--you’ve got to put in a little due diligence to explore your options and find the best one for you.
I personally went through over 30 contractors before finding my current go-to guy.
Here’s a few of things that are definitely going to break down at some point in your MHP journey:
Your most considerable risk is HVAC. It is expensive just to have someone come out and troubleshoot the problem, nevermind making an actual repair.
Roofing comes in strong second place. You can spend thousands of dollars on replacing one double-wide.
Water leaks will ruin carpet, floors, carpet, membrane, drywall, etc.
Electrical issues will still cost a pretty penny.
Underground leaks are bound to happen. Here’s where having a great plumber on your team pays off.
Submeter: At times a park’s master meter reading will be different from each tenants. When submeters break, they break in favor of less usage rather than more, meaning you as the park owner are eating that extra cost. And in some cases, identifying the underperforming submeter is like finding a needle in a haystack.
Infrastructure and utilities matter--and if you have the proper systems and people in place, you will make more money and spend far less on repairs.
What Won’t Break?
Focusing on how you make people feel.
Ian and I got the worst call that we could possibly receive one day.
There had been a shooting at our mobile home park, and it was all over the news.
A situation like this is enough to make even the most seasoned investor lose their cool.
What did Ian and I do about it?
We called the leading people of influence in our mobile home park.
We wrote up a statement for both the press and tenants.
We delivered the same, consistent, familiar message we always do--cleanliness, safety and security.
Most importantly, we went to the property and let people hear the confidence in our voices in person.
Showing your face after an emotionally charged event can be the difference between a nightmare and a mere speedbump.
In short, it's your responsibility to make people feel important, safe, and valued. Not only is it the right thing to do, but people will reward you with their loyalty.
Having a solid plan of action based on what you know is infinitely better than winging it. Things are going to break. Will you be ready when they do?
Check out the MHP_IRL Podcast for more stories about my investing journey with my company Archimedes Group.