The property has been in a holding pattern with little or no investment made to keep it current in several years. As a result, there is some deferred maintenance and some high yielding management decisions that could be implemented.
The easiest decision is to raise all lot rentals to market. The second is an immediate price increase in the storage unit rentals as well as an active marketing of the space. The storage unit rental rates have not been managed for maximum revenue production as there have been no increases or advertising in several years. While a small rent increase may create a short term increase in vacancy, an active marketing program should quickly cure it as the location of these units is very convenient to a large population base.
When the park was built, 100 amp electrical services were used as most homes had gas appliances. Since then, most homes come all electric and require a 200 amp service. If the remaining five lots are made ready for all electric, they should be quickly leased at a higher rental rate as there is significant interest in locating all electric homes in this location.
The one home owned by the park is in need of repair and again, there is strong demand for rental housing in Hobbs. The proforma operating statement attached below reflects the financial performance of the property assuming these improvements were made.
downloadable documents (pdf):
2004 Tax Return
- 2005 Tax Return
-
2006 Tax Return
- 2007 Tax Return
- 2008 Tax Return
- Operating
Statement
- Property Rent Roll
- Projected Proforma Operating Statement
