Are you getting ready to purchase another manufactured housing community, or maybe you’re buying your first one? While this is an exciting time for your business, there are many details to consider simultaneously--from due diligence to closing day. We’ve put together your new go-to list of steps to take while purchasing your next manufactured housing community.
During the discovery phase of any manufactured housing acquisition, and with the help of your attorney, be sure to:
1. REVIEW COMMUNITY LEASES & GUIDELINES
On-Site Lease Audit
Are the leases available?
Are they correctly signed?
Do they align with the rent roll information?
What clauses control rent increases?
What are the late fees and NSF fees?
What additional charges are allowed or restricted under the lease?
When do leases expire?
Community Guidelines (Rules and Regulations)
Are there any clauses that stand out as concerning or unusual?
What are the rules regarding pets, fencing, and landscaping?
When was the last time the document was updated?
2. GATHER ADDITIONAL DOCUMENTS
Are there any large contracts such as trash or cable?
Are there any community income arrangements from these vendors?
Are there any community-owned homes?
If so, are the titles available?
Are any homes under Lease-to-Own or Lease-with-Option programs?
Are there any homes with community-held loans?
Licenses & Permits
Are permits up to date for utility infrastructure like sewer treatment plants?
Are there business license permits?
Will a dealer’s license or a sales license be needed?
What kinds of insurance will be needed for the property?
What are the community’s physical assets (computers, golf carts, maintenance tools, etc)?
3. EXAMINE UTILITY BILLING
Utility Rate Analysis
Has the seller been charging correctly for utility rates?
When was the last time utility rates were recertified by a utility billing specialist?
Are utility customer charges allowed at this location?
Are there any rate increases that have been delayed?
Which utilities are included in the rent, if any?
Is there potential to charge residents for utilities that had been included historically in the lease?
Once you’re well underway with the acquisition process, it’s time to onboard essential systems that must be in place prior to the day of closing:
4. SET UP MONEY MANAGEMENT SYSTEMS
When will the new bank account be set up?
Has a check scanner and/or credit card reader been ordered?
Will residents have an option of using Resident Portal to make payments?
What other additional payment options will you offer residents (CashPay, Flex, Western Union, Text to Pay)?
Has a letter been prepared to send to residents after closing about a change of payment options?
5. ONBOARD TECHNOLOGY & INTEGRATED SOFTWARE
Have you ordered computers and internet?
Have you set up an email for your future team?
Have you notified your property management software provider of your acquisition?
Have you planned training and support for your new team?
At ManageAmerica, we have shepherded countless clients—like you—through the onboarding process as they have acquired new properties. From the moment you begin working with ManageAmerica, you’ll see how our team’s professional service truly sets us apart. As experienced industry professionals, we understand the complexities of your business and pride ourselves on providing support that allows you to take full advantage of the benefits of using ManageAmerica’s products, features, and services. As partners in your success, we are committed to supporting your team's ongoing needs and growth.