How Much is Home Site Rent and What is it for?
May 3, 2021
Grand View and Summit View Manufactured Home Parks are correctly called “land-lease communities”. Residents own their homes and lease the land. How does that compare financially with a site built home on real estate? Pretty good, actually.
Mobile home parks like Hames communities are privately owned, and charge monthly home site rent (also called “lot rent” or “pad rent”) which includes land taxes, property upkeep, and amenities. The cost of lot rent can be a confusing concept and the best way to understand it is by example.
SITE-BUILT HOME ON REAL ESTATE
Let’s say you’re looking at a 1500 square foot, 3 bedroom/2 bathroom pre-owned home in Cedar Rapids, Iowa for $195,000 to $290,000[i]. According to SmartAssets.com[ii], annual property taxes would be $3,491-$5,191. In addition to property tax, you’ll have to pay all utilities, plus maintenance costs that come with buying a home that might need a little (or a lot of) fixing-up.
HAMES MANUFACTURED HOME IN GRAND VIEW OR SUMMIT VIEW
Now suppose you’re purchasing a brand-new 3 bedroom/2 bathroom 1500 square foot double-sectional home in Grand View for $99,900. This includes a 1 year manufacturer’s warranty. Add a two-car garage for $35,000 and property taxes are about $390 per year. Home site rent in Grand View and Summit View is $375 to $400 per month, or $4,500 to $4,800 annually. Home site rent includes garbage pick-up, storm water fees, on-call 24/7 management plus amenities like abundant green spaces, playgrounds, parks, pavilions, walking trails, disc golf course, basketball courts, and community events for residents at no extra charge.
Savings with the purchase of a Hames home: $60,100 to $175,100, and annual living expenses are the same or lower.
View our large selection of new and used mobile and manufactured homes online! Visit us 7 days a week at 5410 Wabash Street SW, Cedar Rapids, or call us at (319) 377-4863 for answers to all your questions about lot rent, home styles, financing[iii], and homeowner’s insurance
[i] Sample properties: 1415 4th St SW, Cedar Rapids, IA 52404 | MLS #2102146 | Zillow https://www.zillow.com/homedetails/8824-Grand-Oaks-Dr-NE-Cedar-Rapids-IA-52402/299779460_zpid/
[ii] https://smartasset.com/taxes/iowa-property-tax-calculator#:~:text=Overview%20of%20Iowa%20Taxes,effective%20rate%20in%20the%20country.
[iii] Through Circle Finance LLC NMLS #366020