10 Budgeting Tips for Manufactured Housing Owners

As the owner of a manufactured housing community, it's important to consider several key areas to ensure a comprehensive and well-planned budget for the following year. With almost 25 years of experience, our team of industry experts has put together this list of 10 important things to keep in mind as you build your budget for 2024:

1. Operating Expenses: Evaluate and project operating expenses, including maintenance, repairs, utilities, landscaping, insurance, property management fees, administrative costs, and other regular expenses required to keep the community running smoothly.

2. Capital Expenditures: Identify and prioritize necessary capital expenditures, such as infrastructure upgrades, renovations, common area improvements, or equipment purchases. Plan for these investments over the coming year and allocate appropriate funds.

3. Revenue Projections: Analyze historical revenue data and market trends to project future revenue streams accurately. Review factors like rental income, home sales, ancillary income from amenities or services, and potential changes in market conditions or occupancy rates.

4. Marketing and Advertising: Allocate a budget for marketing and advertising efforts to attract new residents or buyers. Invest in online marketing, local advertising, signage, brochures, website maintenance, and other promotional activities to showcase the community's offerings effectively.

5. Staffing and Training: Evaluate staffing needs and allocate resources for employee salaries, benefits, training programs, and professional development. Make any adjustments required based on changes in community occupancy, operational demands, or regulatory requirements.

6. Property Upkeep and Maintenance: Estimate costs associated with ongoing property upkeep and maintenance, including routine repairs, landscaping, pest control, snow removal (if applicable), and any necessary vendor contracts.

7. Regulatory Compliance: Allocate funds to ensure compliance with local, state, and federal regulations, such as zoning codes, safety standards, fair housing laws, and environmental requirements. Budget for inspections, permits, and any necessary upgrades or modifications.

8. Community Amenities and Services: Plan for maintenance, upgrades, or additions to community amenities and services that enhance resident satisfaction and attract potential buyers or renters. This may include recreational facilities, community centers, playgrounds, swimming pools, or additional services like trash collection or security.

9. Financial Reserves and Long-Term Planning: Set aside funds for unforeseen expenses or emergencies that may arise throughout the year. Establishing contingency reserves helps mitigate unexpected costs, such as major repairs, natural disasters, or legal matters. Consider allocating funds to build financial reserves and savings for long-term community planning. This can include future expansions, community-wide upgrades, infrastructure replacements, or other strategic initiatives to ensure the community's continued growth and stability.

10. Technology and Software: Review your existing technological infrastructure and software systems. Implement a high-end property management software tailored to the manufactured housing industry to help drive occupancy, collect payments quickly, save employees’ time, and reduce risk and errors. Schedule a demonstration now so you can launch your new software for the new year.

By focusing on these ten areas during the annual budgeting process, you can create a comprehensive and well-rounded budget that aligns with your manufactured housing community's goals, operational requirements, and financial objectives. Regularly review and adjust the budget throughout the year to maintain financial health and meet evolving community needs.