Yes, you can Airbnb a mobile home in the United States and in many other places around the world. Mobile homes around the world have become a platform for vacation-goers to enjoy varying terrain, different views, and numerous lifestyles than they might have on a normal beat.
According to Airbnb, the company welcomes various sorts of listings on its site as long as they meet the company’s criteria.
First, the space is expected to be used only for lodging, and the space, if a mobile home, sailboat, yacht, or other vessels, will have to be semi-permanently attached to a set location and safely parked in a privately-owned space during the reservation.
Also, note that the space will have to be accurately located where the host says it is and is bookable by the host. Mobile home parks have become a popular investment in the United States, however, a good number of investors still don’t consider renting mobile homes as an investment.
Just like a single-family home or multifamily property, a mobile home offers people a place to reside temporarily. To meet Airbnb criteria, there are two ways mobile home investing can work; you can place the mobile home on a piece of land you own and rent or Airbnb it all to a tenant, or you can own a mobile home situated in a mobile home park and charge the tenant mobile home rent and lot rent.
However, if the home is located in a mobile home park that isn’t yours, then the lot rent will have to be paid to the mobile home park owner. If you own the mobile home, there is a greater possibility you’ll be responsible for the lot rent.
Have it in mind that lot rent is what mobile homeowners pay for the space the home is parked on. This rent most often includes water, sewer, use of the private road and common areas.
Note that this lot rent is most often very cheap compared to rent in a single-family home or apartment. The park landlord necessarily doesn’t have the capital invested into the structure and isn’t tasked with maintaining the home, so they don’t have as many costs to cover.
However, note that rules vary among mobile home parks as to how rentals are handled. Before jumping to put up your mobile home for rent, ensure to consider your pros and cons extensively.
Pros and Cons to Consider When Looking to Airbnb a Mobile Home
To Airbnb your mobile home isn’t easy, and running your own Airbnb business comes with a lot of challenges and considerations that many people just don’t think of when they first get into the game. Nevertheless, ensure you consider these advantages and disadvantages before you get started:
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Low Cost Of Entry
Without a doubt, one of the most exciting things about renting mobile homes is that they cost very little compared to other property types.
Although a brand new mobile home out of the factory can almost reach the price of a standard home, investors can however easily acquire second-hand mobile homes for under $10,000. In the United States, most often, people are willing to sell their mobile home for less than $1,000 just to get out of paying their lot rent.
Owing to that, the low cost of acquiring a mobile home ensures that it is easier for some people to start investing in real estate. With patience and some legwork, anyone can start investing in mobile homes for under $5,000.
Costs Less Than Building
If you own a piece of vacant land, situating your mobile home on it might work out to be much cheaper than building a house. However, you’ll be expected to research your local ordinances to understand if you’re allowed to locate a mobile home on the land.
If the initial investment is low and the market is good, then the potential return on investment (ROI) will have to be high and enticing. For instance, if you acquire a mobile home for $2,000 and net just $100/ month after lot rent and expenses, that’s a 60 percent return.
Just like it was noted above, if your mobile home is parked in a rented lot, then you will be expected to pay the lot rent whether you have a tenant or not. In terms of renting a mobile home in a park, the lot rent more or less makes up a vast percentage of the rent payment. One month of lot rent may cost as much as you generate in mobile home rental income in two months.
Mobile Homes Don’t Appreciate
One of the most vital things investors love about real estate is that it almost always appreciates over time. Even if a property doesn’t enjoy that much appreciation, it barely depreciates in value over time. This is not the same as mobile homes, though.
A manufactured home is more or less like a car as its value starts depreciating immediately you buy it. You may never sell a mobile home for as much as it costs to purchase it.
Manufactured homes depreciate around 3 percent to 5 percent. Even that could be higher for the first few years after buying, just like a car. For the most part, the depreciation or (rarely) appreciation value of a mobile home can be complicated to calculate.
Also, have it in mind that the cost of a mobile home is mostly considered an expense and not an investment, mainly because you may not get your original investment back. Renting mobile homes is all about cash flow.
Mobile Homes Are High Maintenance
Indeed, manufactured homes aren’t built to the same standard or strength as stick-built homes. These homes are mass-produced in a factory and only have to meet Department of Housing and Urban Development (HUD) requirements, not local construction codes.
According to experts, mobile homes start to wear out after time and will always warrant a lot more maintenance than most other types of homes.
Note that it can be very daunting to source loans to acquire a mobile home. Financing mobile homes is a massive risk for a bank especially owing to how quickly they lose value. If they’re in a mobile home park, they’ll also face the issue of paying the lot rent if they have to repossess the home.
If you intend to Airbnb your mobile homes for cash flow, it is imperative to first understand the local market for mobile homes in your area and also all Airbnb policies.
Failure to understand how the Airbnb business model works, from both the guest and host’s point of view, is the first place a good number of people go wrong. Learning the ins and outs of Airbnb procedure should be the first thing to do before setting up your business.