What is the best or most funny excuse you have received for a tenant not paying their rent? We want to hear them all.
The top winner will be determined and awarded our new Mobile Home Park Store shirt.
Good Luck!!!
Rules:
-Must state in email your tenants best or most funny excuse to mhpscontest@gmail.com.
-Email must include contact details. (Email address and phone number. ) Please include how you would like to be contacted if you are one of the winners.
-Entries must be submitted to mhpscontest@gmail.com no later than November 30, 2011 at 11:59pm CST.
-After November 30, a creative team will narrow down entries and determine the top entry. The winner will then be contacted for their shipping address.
Monday, November 7, 2011
Monday, September 19, 2011
How to Make Money in the Self Storage Business
Most Americans have more stuff than they know what to do with. As a result, they need extra space to store their stuff in. This basic need is the back-bone of the self-storage industry. But just because the demand is there doesn’t mean that making money filling that void is simple and guaranteed. The self-storage industry is more complicated than it looks, and there are many important issues to understand and address.
The Right Type of Facility
There have been a number of different types of self-storage facilities built over the last four decades. However, the profitable ones are among the first variety – they are called “Generation One” or “Generation Two”. The important component is that they have all rentable units located on the ground floor, and in a manner that a car can drive right up to the roll-up door. Why is this? Studies have found that self-storage tenants want to be able to drive right up to their self-storage unit door, roll it up, throw their stuff into it (or pull it out of the it), close the door and drive off. What’s not in demand are units that are located on a second floor or higher, or that you can only reach on foot. Nobody wants to have to take an elevator to their unit, or walk down a hallway with their stuff in tow. There never really was a demand for these type of facilities – it was more a fabrication by self-storage developers trying to rationalize building facilities on more expensive land, which required a greater number of units on that “footprint”.
Just as multi-story facilities have proven to be a flop, so have “climate controlled” units. It appears that the items that most Americans store are not valuable enough to require heating and air-conditioning. If you go to most facilities today, you will find the bulk of the “climate controlled” space vacant. At the worst end of this spectrum are the California invention of “wine storage” units. I was in a facility recently that had only 20% occupancy in “wine storage”. The cheap wine refrigerator available at Costo and other retailers has replaced this concept for most people. And don’t forget that “climate controlled” areas are extremely expensive to operate.
The Right Kind of Location
It is extremely important in self-storage to have excellent street frontage and visibility. The most successful self-storage facilities in the U.S. all share this common trait. This is because many Americans rent space in facilities that they drive by all the time and have awareness of – kind of a “point of purchase” decision. When you have a self-storage facility with poor visibility and an out-of-the-way location, there is no way that anyone will “think” to rent from you, or even find you if they wanted to.
Don’t forget that self-storage is extremely competitive in most markets. Given this fact, it is important that your facility have the correct basic gifts to compete. We all enjoy the stories of underdogs who go on to victory – like the one-handed baseball player – but it is far easier to win when you don’t have a disadvantage from day one.
The Right Kind of Market
Self-storage requires a high density of potential customers. Not everyone needs it, and there are competitors who are also asking for their business. There is a general rule that there should be a population of at least 50,000 people within a three mile radius of the facility. While this is only a guideline, the key thought is that you need a heavy population density for a facility to be successful.
As important as population density, is the density of self-storage space in the market. An over-built market will have low rents and excessive vacancy. The general rule of thumb is that there should not be more than 6 square feet of storage space for every person in that market. For example, a market of 100,000 people should not have more than 600,000 square feet of self-storage capacity.
Demographics are also a key part of a healthy self-storage market. Markets with household income of $50,000+ per year are best. Why? Because the more money you make, the more stuff you buy – and the more stuff you need to store!
The Right Kind of Price and Terms
An essential part of any self-storage acquisition – probably the most important of all – is the price and terms of the deal. Even the best self-storage facility will be a loser if you over-pay for it. You should never buy a self-storage facility at less than around a 10% cap rate (return on the total price). In addition, you should be able to finance the deal with around 20% down, so that your cash-on-cash return is in the mid-teens.
The best buys in self-storage facilities are from “moms & pops” – individuals who own the property free and clear and do not provide very sophisticated management. You can normally buy from these moms & pops at very attractive prices, and they can seller-finance the purchase, avoiding the entire banking application and approval cycle.
Conclusion
Making money investing in self-storage facilities is a very attainable goal. But you need to make sure that you follow some basic guidelines to ensure that your purchase will be a good one.
The Right Type of Facility
There have been a number of different types of self-storage facilities built over the last four decades. However, the profitable ones are among the first variety – they are called “Generation One” or “Generation Two”. The important component is that they have all rentable units located on the ground floor, and in a manner that a car can drive right up to the roll-up door. Why is this? Studies have found that self-storage tenants want to be able to drive right up to their self-storage unit door, roll it up, throw their stuff into it (or pull it out of the it), close the door and drive off. What’s not in demand are units that are located on a second floor or higher, or that you can only reach on foot. Nobody wants to have to take an elevator to their unit, or walk down a hallway with their stuff in tow. There never really was a demand for these type of facilities – it was more a fabrication by self-storage developers trying to rationalize building facilities on more expensive land, which required a greater number of units on that “footprint”.
Just as multi-story facilities have proven to be a flop, so have “climate controlled” units. It appears that the items that most Americans store are not valuable enough to require heating and air-conditioning. If you go to most facilities today, you will find the bulk of the “climate controlled” space vacant. At the worst end of this spectrum are the California invention of “wine storage” units. I was in a facility recently that had only 20% occupancy in “wine storage”. The cheap wine refrigerator available at Costo and other retailers has replaced this concept for most people. And don’t forget that “climate controlled” areas are extremely expensive to operate.
The Right Kind of Location
It is extremely important in self-storage to have excellent street frontage and visibility. The most successful self-storage facilities in the U.S. all share this common trait. This is because many Americans rent space in facilities that they drive by all the time and have awareness of – kind of a “point of purchase” decision. When you have a self-storage facility with poor visibility and an out-of-the-way location, there is no way that anyone will “think” to rent from you, or even find you if they wanted to.
Don’t forget that self-storage is extremely competitive in most markets. Given this fact, it is important that your facility have the correct basic gifts to compete. We all enjoy the stories of underdogs who go on to victory – like the one-handed baseball player – but it is far easier to win when you don’t have a disadvantage from day one.
The Right Kind of Market
Self-storage requires a high density of potential customers. Not everyone needs it, and there are competitors who are also asking for their business. There is a general rule that there should be a population of at least 50,000 people within a three mile radius of the facility. While this is only a guideline, the key thought is that you need a heavy population density for a facility to be successful.
As important as population density, is the density of self-storage space in the market. An over-built market will have low rents and excessive vacancy. The general rule of thumb is that there should not be more than 6 square feet of storage space for every person in that market. For example, a market of 100,000 people should not have more than 600,000 square feet of self-storage capacity.
Demographics are also a key part of a healthy self-storage market. Markets with household income of $50,000+ per year are best. Why? Because the more money you make, the more stuff you buy – and the more stuff you need to store!
The Right Kind of Price and Terms
An essential part of any self-storage acquisition – probably the most important of all – is the price and terms of the deal. Even the best self-storage facility will be a loser if you over-pay for it. You should never buy a self-storage facility at less than around a 10% cap rate (return on the total price). In addition, you should be able to finance the deal with around 20% down, so that your cash-on-cash return is in the mid-teens.
The best buys in self-storage facilities are from “moms & pops” – individuals who own the property free and clear and do not provide very sophisticated management. You can normally buy from these moms & pops at very attractive prices, and they can seller-finance the purchase, avoiding the entire banking application and approval cycle.
Conclusion
Making money investing in self-storage facilities is a very attainable goal. But you need to make sure that you follow some basic guidelines to ensure that your purchase will be a good one.
Monday, September 12, 2011
Investing in Mobile Homes
There are over 60,000,000 Americans with household incomes under $20,000 per year. To this giant market, a mobile home is the only form of detached housing that they will ever be able to afford. And, as a result, the demand for mobile homes has never been higher. But how can you take advantage of this opportunity?
The Basics of Affordable Housing
Before you can begin to invest in mobile homes, you must first understand your customer. For those families with household incomes under $20,000 per year using the government's own ratio of housing cost to income of 33% their housing budget is around $500 per month. At the same time, the average cost of an apartment in the U.S. in 2010 was around $1,030 per month. The point is that this market segment is extremely thankful to find something that they can afford, and is not very discriminating on the quality of the product. They are looking for basic shelter literally a roof over their head, a solid floor, running water and sewer, and heat in the winter. These customers are not expecting fine carpets, hardwood floors, upscale cabinetry. As a result, a successful investor in mobile homes will not focus on providing more than the basics. That is not to say that the home should not be clean and attractive. But the American obsession with upscale bathrooms and kitchens has no place in affordable housing.
And before you think that this customer is different than you and I, look around you. If you earn $10 per hour or less, you are in this segment. And that is a giant pool of jobs in America today. Almost everyone who works at the grocery store, McDonald's everywhere you go earns in this range. And as America's economy continues to decline, this number grows.
Why Mobile Homes Are The Answer to Affordable Housing
Mobile homes are the lowest cost form of detached housing to build. It costs less than $30 per square foot to build a mobile home, as opposed to around $100 for a stick-built home. And used homes often sell in the area of $10 to $15 per square foot. HUD has controlled the construction standards of mobile homes since the 1970s, with the goal of keeping costs at a minimum. If there's been a way to shave costs, it's been done.
The other key is the quality of life that a mobile home can provide the resident as compared to other inexpensive housing options. Unlike an apartment, the customer has nobody banging on their walls or ceiling. They have a yard. They can have a pet. Basically, mobile homes allow residents to have self-respect, and a neighborhood feel that supports a healthy lifestyle.
Why Mobile Homes Are Easy To Renovate
Mobile homes have some unusual attributes that other forms of housing do not share. One is that they have no permanent foundation. A mobile homes foundation is nothing more than a steel chassis, to which the wooden floor is attached. There are so slabs and no piers nothing expensive to settle or crack. Leveling a mobile home costs in the hundreds compared to a stick-built homes thousands. All utilities run in a common trough as opposed to the myriad of wires and pipes in a stick-built home. This makes it easy to locate and repair the water, sewer and electric pipes and lines.
One of the most unusual components of a mobile home is the fact that none of the walls are load-bearing. A mobile home is structurally similar to a shoe box the walls and roof are the only components needed to make it stand up. This gives you much more freedom in renovations, as virtually all internal walls are simply cosmetic.
An Unbelievable Amount of Demand
If the U.S. is in a recession, you would never know it if you run an ad for a mobile home for sale or rent. Even in a small market, you should receive 30 to 50 calls a week in response to your ad. At a mobile home park in Pueblo, Colorado recently, the number of calls exceeded 150 in one week. Why all the calls? Because there is a huge, unsatisfied demand for affordable housing. But that's not the whole story. The other cause of the giant demand is the poor quality of traditional apartment offerings. Have you seen an affordable housing apartment complex recently? Anyone who thinks that mobile home parks are unattractive has not visited apartments. The true crime center of most cities today are the lower-income apartment developments, with drug dealers standing out in front and prostitutes, gangs and drug addicts living inside. This is a horrible environment for any family or individual to live in, and many buyers and renters of mobile homes are fleeing from these terrible situations. In fact, most cities now view aging apartment complexes as their #1 problem- not trailer parks.
Healthy Numbers
Mobile homes are an attractive investment due to very attractive numbers. Essentially, it is easy to sell a mobile home for much more than you paid for it. A mobile home that you buy and renovate for $8,000 can be sold for $15,000 and a home that costs $12,000 can be sold for $30,000. You can buy them relatively cheaply because most people do not want to invest in this asset type. At the same time, there is a huge supply/demand gap, so you can price them high without much competition. The important fundamental and the one that needs to be your guide in every decision you make is to stick with the business model of affordable housing. You have to construct the monthly payment , including mobile home park lot rent, to not exceed around $500 per month. This is what the customer can afford. If you place the consumer in a position of having a bigger monthly obligation than they can afford as was just demonstrated in the sub-prime mortgage meltdown you will end up in endless defaults. This serves no one, as you are constantly having to clean and re-sell the home and your customers are denied the affordable housing, and long term benefit, that they are searching for.
Gaining Knowledge In This Niche
There are two websites that contain a large amount of information on this investment sector. One is www.Mobilehomeparkstore.com and the other is www.MHBay.com which together make up the largest portfolio of websites for the industry. There is also a new site that contains a vast assortment of articles and tips on investing in mobile homes at www.Mobilehomer.com .
Conclusion
Affordable housing is going to be one of the key investment sectors in real estate in the coming years. Get in now, on the ground floor. You can obtain spectacular returns and -- equally important -- provide nice housing to hard-working Americans who need it badly. This is a giant market, and one that you will be hearing a lot more about in the future.
The Basics of Affordable Housing
Before you can begin to invest in mobile homes, you must first understand your customer. For those families with household incomes under $20,000 per year using the government's own ratio of housing cost to income of 33% their housing budget is around $500 per month. At the same time, the average cost of an apartment in the U.S. in 2010 was around $1,030 per month. The point is that this market segment is extremely thankful to find something that they can afford, and is not very discriminating on the quality of the product. They are looking for basic shelter literally a roof over their head, a solid floor, running water and sewer, and heat in the winter. These customers are not expecting fine carpets, hardwood floors, upscale cabinetry. As a result, a successful investor in mobile homes will not focus on providing more than the basics. That is not to say that the home should not be clean and attractive. But the American obsession with upscale bathrooms and kitchens has no place in affordable housing.
And before you think that this customer is different than you and I, look around you. If you earn $10 per hour or less, you are in this segment. And that is a giant pool of jobs in America today. Almost everyone who works at the grocery store, McDonald's everywhere you go earns in this range. And as America's economy continues to decline, this number grows.
Why Mobile Homes Are The Answer to Affordable Housing
Mobile homes are the lowest cost form of detached housing to build. It costs less than $30 per square foot to build a mobile home, as opposed to around $100 for a stick-built home. And used homes often sell in the area of $10 to $15 per square foot. HUD has controlled the construction standards of mobile homes since the 1970s, with the goal of keeping costs at a minimum. If there's been a way to shave costs, it's been done.
The other key is the quality of life that a mobile home can provide the resident as compared to other inexpensive housing options. Unlike an apartment, the customer has nobody banging on their walls or ceiling. They have a yard. They can have a pet. Basically, mobile homes allow residents to have self-respect, and a neighborhood feel that supports a healthy lifestyle.
Why Mobile Homes Are Easy To Renovate
Mobile homes have some unusual attributes that other forms of housing do not share. One is that they have no permanent foundation. A mobile homes foundation is nothing more than a steel chassis, to which the wooden floor is attached. There are so slabs and no piers nothing expensive to settle or crack. Leveling a mobile home costs in the hundreds compared to a stick-built homes thousands. All utilities run in a common trough as opposed to the myriad of wires and pipes in a stick-built home. This makes it easy to locate and repair the water, sewer and electric pipes and lines.
One of the most unusual components of a mobile home is the fact that none of the walls are load-bearing. A mobile home is structurally similar to a shoe box the walls and roof are the only components needed to make it stand up. This gives you much more freedom in renovations, as virtually all internal walls are simply cosmetic.
An Unbelievable Amount of Demand
If the U.S. is in a recession, you would never know it if you run an ad for a mobile home for sale or rent. Even in a small market, you should receive 30 to 50 calls a week in response to your ad. At a mobile home park in Pueblo, Colorado recently, the number of calls exceeded 150 in one week. Why all the calls? Because there is a huge, unsatisfied demand for affordable housing. But that's not the whole story. The other cause of the giant demand is the poor quality of traditional apartment offerings. Have you seen an affordable housing apartment complex recently? Anyone who thinks that mobile home parks are unattractive has not visited apartments. The true crime center of most cities today are the lower-income apartment developments, with drug dealers standing out in front and prostitutes, gangs and drug addicts living inside. This is a horrible environment for any family or individual to live in, and many buyers and renters of mobile homes are fleeing from these terrible situations. In fact, most cities now view aging apartment complexes as their #1 problem- not trailer parks.
Healthy Numbers
Mobile homes are an attractive investment due to very attractive numbers. Essentially, it is easy to sell a mobile home for much more than you paid for it. A mobile home that you buy and renovate for $8,000 can be sold for $15,000 and a home that costs $12,000 can be sold for $30,000. You can buy them relatively cheaply because most people do not want to invest in this asset type. At the same time, there is a huge supply/demand gap, so you can price them high without much competition. The important fundamental and the one that needs to be your guide in every decision you make is to stick with the business model of affordable housing. You have to construct the monthly payment , including mobile home park lot rent, to not exceed around $500 per month. This is what the customer can afford. If you place the consumer in a position of having a bigger monthly obligation than they can afford as was just demonstrated in the sub-prime mortgage meltdown you will end up in endless defaults. This serves no one, as you are constantly having to clean and re-sell the home and your customers are denied the affordable housing, and long term benefit, that they are searching for.
Gaining Knowledge In This Niche
There are two websites that contain a large amount of information on this investment sector. One is www.Mobilehomeparkstore.com and the other is www.MHBay.com which together make up the largest portfolio of websites for the industry. There is also a new site that contains a vast assortment of articles and tips on investing in mobile homes at www.Mobilehomer.com .
Conclusion
Affordable housing is going to be one of the key investment sectors in real estate in the coming years. Get in now, on the ground floor. You can obtain spectacular returns and -- equally important -- provide nice housing to hard-working Americans who need it badly. This is a giant market, and one that you will be hearing a lot more about in the future.
Tuesday, August 23, 2011
How to Handle the Impossible Tenant
Which Type Are They?
For the sake of simplicity, I’m going to divide problem tenants into two groups: 1) behavioral and 2) verbal. “Behavioral” problem tenants take actions that jeopardize the welfare and aesthetics of the community. “Verbal” problem tenants do their damage by harassment of the park management.
Both types are not conducive to a well-managed, profitable park, and must be immediately disarmed and/or removed from the property. However, in many cases, the proper steps can cure their issues and make them a normal, paying tenant again.
“Behavioral” Problems
The first type of behavioral problem is the tenant who engages in criminal activity. The most common of these is manufacturing/dealing in drugs. Signs of this type of behavior include a constant stream of cars dropping by the house – normally at night – for very short intervals, as well as people milling around in the street at night, in the vicinity of the mobile home.
The important step here is to do nothing yourself, but to only take action through the local police department. You should never get directly involved with this type of tenant, due to risks of physical harm to you and potential liability. Call the police department and tell them what you have been observing. If there really is something to what you suspect, the police will take care of it.
But if the police fail to take action, then your next step is to non-renew the tenant’s lease. Assuming that the tenant is on a month-to-month agreement, you can simply not renew, and they have to move out at the end of the next full month. Even then, it is smart to have a local attorney file this notice and to handle any subsequent legal action to evict them.
The Tenant Who Won’t Keep Their Property Up
Equally disruptive – but not as scary – is the tenant who refuses to keep their property in an acceptable condition. Debris everywhere in the yard, a house with a paint job that you can hardly tell what the original color was, or grass that is 3’ tall. It is impossible to ask the rest of the park community to keep up their property when you allow this individual to get away with murder. So what do you do?
The first step is to notify the tenant in writing that they are not in keeping with the park rules. This assumes that your park has rules; if not, you need to adopt some immediately. It is essential to keep everything in writing so that you have a legal paper trail in case you should have to go to court for any reason.
Give the tenant a detailed request of what needs to be done to be in compliance with park rules, as well as a timetable to complete the work. Of course, they will rarely meet this deadline, but it’s the critical first step to show the court that you are trying to be reasonable.
Once the deadline has passed – and the clean-up has not been completed (or probably even started) – then you have two choices: 1) non-renew the tenant’s lease or 2) take matters into your own hands. To take matters into your own hands, I’m suggesting that you clean up their yard, mow the grass, or re-paint their house at your own expense. You can then either bill the cost back to the tenant, or just write it off. How do you choose what to do? The key is the tenant. If your tenant is old and infirmed, then they simply do not have the ability or funds to make the needed repairs. If they have paid their rent like clockwork for the past several years, why cut off that income stream by evicting a good-paying tenant? If, however, the tenant is young and able to do the work themselves – but too lazy to do it – then you might want to bill it back to the tenant to send a clear message that breaking of the rules is not tolerated. You might break the charges up into several monthly installments to make it more affordable. But you cannot let people continue to ruin the park for everyone.
The Verbal Problem Tenant
These are the tenants who complain continuously about anything and everything. They don’t necessarily disturb the other tenants – their aggression is focused on the park management. I have had these type of tenants who will call at 11 PM and then again at 6 AM; they have virtually no boundaries.
These are much easier to dispatch than the behavioral problem tenants. You simply have to turn the tables on them. Here’s how.
When the tenant calls to complain, tell them “you are clearly unhappy living here, you really should move to a mobile home park where you would be happier.” This throws the tenant off immediately, as they think that their power over you is that you don’t want to lose them. When you let them know that you don’t care about their rent anymore, they are now in a position of weakness. In addition, it costs around $3,000 to move and set a mobile home. So for them to move, they will need to come up with $3,000 cash. Who’s in a position of weakness now?
Conclusion
Problem tenants can be solved. Don’t let a tenant ruin your day. Take action and turn the tables on them. It’s good for you, and it’s good for the community
For the sake of simplicity, I’m going to divide problem tenants into two groups: 1) behavioral and 2) verbal. “Behavioral” problem tenants take actions that jeopardize the welfare and aesthetics of the community. “Verbal” problem tenants do their damage by harassment of the park management.
Both types are not conducive to a well-managed, profitable park, and must be immediately disarmed and/or removed from the property. However, in many cases, the proper steps can cure their issues and make them a normal, paying tenant again.
“Behavioral” Problems
The first type of behavioral problem is the tenant who engages in criminal activity. The most common of these is manufacturing/dealing in drugs. Signs of this type of behavior include a constant stream of cars dropping by the house – normally at night – for very short intervals, as well as people milling around in the street at night, in the vicinity of the mobile home.
The important step here is to do nothing yourself, but to only take action through the local police department. You should never get directly involved with this type of tenant, due to risks of physical harm to you and potential liability. Call the police department and tell them what you have been observing. If there really is something to what you suspect, the police will take care of it.
But if the police fail to take action, then your next step is to non-renew the tenant’s lease. Assuming that the tenant is on a month-to-month agreement, you can simply not renew, and they have to move out at the end of the next full month. Even then, it is smart to have a local attorney file this notice and to handle any subsequent legal action to evict them.
The Tenant Who Won’t Keep Their Property Up
Equally disruptive – but not as scary – is the tenant who refuses to keep their property in an acceptable condition. Debris everywhere in the yard, a house with a paint job that you can hardly tell what the original color was, or grass that is 3’ tall. It is impossible to ask the rest of the park community to keep up their property when you allow this individual to get away with murder. So what do you do?
The first step is to notify the tenant in writing that they are not in keeping with the park rules. This assumes that your park has rules; if not, you need to adopt some immediately. It is essential to keep everything in writing so that you have a legal paper trail in case you should have to go to court for any reason.
Give the tenant a detailed request of what needs to be done to be in compliance with park rules, as well as a timetable to complete the work. Of course, they will rarely meet this deadline, but it’s the critical first step to show the court that you are trying to be reasonable.
Once the deadline has passed – and the clean-up has not been completed (or probably even started) – then you have two choices: 1) non-renew the tenant’s lease or 2) take matters into your own hands. To take matters into your own hands, I’m suggesting that you clean up their yard, mow the grass, or re-paint their house at your own expense. You can then either bill the cost back to the tenant, or just write it off. How do you choose what to do? The key is the tenant. If your tenant is old and infirmed, then they simply do not have the ability or funds to make the needed repairs. If they have paid their rent like clockwork for the past several years, why cut off that income stream by evicting a good-paying tenant? If, however, the tenant is young and able to do the work themselves – but too lazy to do it – then you might want to bill it back to the tenant to send a clear message that breaking of the rules is not tolerated. You might break the charges up into several monthly installments to make it more affordable. But you cannot let people continue to ruin the park for everyone.
The Verbal Problem Tenant
These are the tenants who complain continuously about anything and everything. They don’t necessarily disturb the other tenants – their aggression is focused on the park management. I have had these type of tenants who will call at 11 PM and then again at 6 AM; they have virtually no boundaries.
These are much easier to dispatch than the behavioral problem tenants. You simply have to turn the tables on them. Here’s how.
When the tenant calls to complain, tell them “you are clearly unhappy living here, you really should move to a mobile home park where you would be happier.” This throws the tenant off immediately, as they think that their power over you is that you don’t want to lose them. When you let them know that you don’t care about their rent anymore, they are now in a position of weakness. In addition, it costs around $3,000 to move and set a mobile home. So for them to move, they will need to come up with $3,000 cash. Who’s in a position of weakness now?
Conclusion
Problem tenants can be solved. Don’t let a tenant ruin your day. Take action and turn the tables on them. It’s good for you, and it’s good for the community
Monday, August 15, 2011
15 Ways to Increase RV Usability
It’s that time of year when families who own recreational vehicles (RV’s) and camping equipment begin to book their camping trips for the summer. Holiday camping has to be done well in advance. Before the snow has melted in most parts of the USA, families are dreaming of lakes and fishing, hiking, fairs, camping on the beach and nights by the fire, staring at the stars in the night time sky.
The Internet has made searching for and contacting campgrounds easy, with some campgrounds even experimenting with online booking. The Internet experience for web site users wanting to book a campground is similar to booking hotel rooms. Prospective guests are excited and hoping for a pleasant stay. Any information a web site offers to help them make choices and imagine themselves snuggled in sleeping bags increases the likelihood that they’ll call.
Thoughtful Design Pays Off
Online booking applications should work flawlessly. Poorly functioning site search or booking systems lead to web site abandonment. Photos should accurately portray the size of living space and what comes with it. In the case of a campground, that includes pull-through spots, fire pit and picnic table. Guests want to know what the camp store and swimming pool look like and whether or not they’re well maintained and staffed.
Many camp grounds are family run and privately owned. A budget for their web site may not exist. Some campground web sites are little more than print brochures adapted to the web with little understanding that a web site requires a new approach because it’s used differently. Try to invest in someone with experience in web design and travel oriented web sites.
The network of KOA (Kampgrounds of America) campgrounds use the same yellow and black color scheme and share resources such as maps, directories and booking applications. The similarity between KOA camping sites is helpful for KOA members who only book with these campgrounds because they get a discount.
Sadly, some of the worst web sites in the travel industry come from campgrounds. This includes state parks that have camping facilities. However, there are exceptions. Some campground businesses invest heavily in photos of their grounds and some offer videos of events they hold or on-site attractions.
Usability can’t be underestimated for campground web sites because their demographics are quite wide in scope. For example, there are retirees who travel from campground to campground. Some of them have cognitive (memory) issues with varying degrees of severity. Complicated navigation is aggravating when the navigation moves around from page to page or suddenly disappears altogether. Their hands may not be as steady, making some drop down navigation menus difficult for them to use. Eye sight problems for them include requiring reading glasses. If your web page font sizes can’t be increased in their browser, they will be frustrated. If they can increase the font size and your layout changes as a result, they may not be able to use the site.
Will these retired folks be using the Internet? You bet! Many of them stay in touch with their families and grand kids via email and cell phones and use the latest GPS gadgets, Google maps and the latest gizmos in their big rigs such as automatic levelers.
Families who book campgrounds will have interests that may surprise you. Their kids have iPods and video games. Some family members will want to bring their laptop. Most will have cell phones. If you’ve ever looked inside a family motor home of a tech bunch, it’s a mass of dangling cell phone chargers and cables. Campgrounds that offer wireless access, TV cable hookup and electric may want to promote this information on their homepage as a value proposition right away rather than tucking it inside an “Amenities” page.
Campgrounds that put their tent people away from noisier motor home guests may wish to note this on their web site.
To make your campground web site user friendly, try adding the following:
1. Make sure your site shows the area site map, with all the buildings, roads, camp sites, showers, etc. Offer a choice in how to access it online by letting visitors download it as a PDF or printing an image or sketch.
2. For campers who can not see, can’t download PDF’s or have images turned off because they’re on dialup, an audio description of the grounds would be helpful.
3. Be consistent with your colors, page layout and navigation.
4. Put your phone number at the top and bottom of every page and make it large enough to find quickly.
5. Watch your contrasts. Many camping sites have colored backgrounds with colored text, which make them hard to read. Text that’s all in boldface is difficult to read online.
6. Keep your copyright year up to date. Otherwise it may appear as though you’re no longer in business.
7. Communicate anything and everything that’s customer service oriented. Sometimes what you offer is the difference between someone booking your campground or the one nearby.
8. Make it easy for out of towners to make arrangements by posting links and/or phone numbers to car rental offices, vets, pet boarding facilities, beach tourist information such as beach passes, discount retail shops, camping supply stores, service stations that can handle RV’s (must have lifts for them), organic food and health centers.
9. Put testimonials on your camping site from previous guests.
10. Describe a typical day at your campground. This gives site visitors an idea of the environment, which helps them make educated choices.
11. Place all “call to action” prompts in highly visible spots like above the page fold and make them stand out. For example, a button for “Book Here” or “Reserve Now” and underlined embedded links within text that reads, “Stop by our calendar of events.” Avoid animation and blinking text.
12. Promote extra touches like your dog walk area, handicapped accessible camp store, locally made gifts, bait and tackle shop and dumping station on the premises.
13. Offer a way to stay in touch such as an email list or newsletter for regulars. Include coupons for return visitors to use, such as one free child admission or free pile of wood.
14. Place any sales or limited specials on the homepage. While your rates will likely not change much, there may be incentives to offer such as lower gas prices in the area, biodiesel, merchandise specials from the camp store, and fireworks for sale.
15. Display photos of staff and owners, a welcome message from the owners and office hours for reservations. Make sure emergency contact numbers are easy to find for guests who may run into trouble on their way there and need to alert you of any delays in their arrival time.
A user friendly, descriptive, customer experience oriented, persuasive web site will increase camping reservations. They’re a tool that many potential guests rely on, but they may not answer every possible question someone may have.
Once I booked a trip for my family looking for a peaceful weekend getaway and I chose a new campground based on their web site and its ease of use. However, we later learned that this particular campground has speakers set up all around the camping area and the owners made very loud announcements every few hours, starting at 8am in the morning. One day everyone in the campground was scolded for not putting their trash out properly.
There are some things even a web site can’t help us with.
The Internet has made searching for and contacting campgrounds easy, with some campgrounds even experimenting with online booking. The Internet experience for web site users wanting to book a campground is similar to booking hotel rooms. Prospective guests are excited and hoping for a pleasant stay. Any information a web site offers to help them make choices and imagine themselves snuggled in sleeping bags increases the likelihood that they’ll call.
Thoughtful Design Pays Off
Online booking applications should work flawlessly. Poorly functioning site search or booking systems lead to web site abandonment. Photos should accurately portray the size of living space and what comes with it. In the case of a campground, that includes pull-through spots, fire pit and picnic table. Guests want to know what the camp store and swimming pool look like and whether or not they’re well maintained and staffed.
Many camp grounds are family run and privately owned. A budget for their web site may not exist. Some campground web sites are little more than print brochures adapted to the web with little understanding that a web site requires a new approach because it’s used differently. Try to invest in someone with experience in web design and travel oriented web sites.
The network of KOA (Kampgrounds of America) campgrounds use the same yellow and black color scheme and share resources such as maps, directories and booking applications. The similarity between KOA camping sites is helpful for KOA members who only book with these campgrounds because they get a discount.
Sadly, some of the worst web sites in the travel industry come from campgrounds. This includes state parks that have camping facilities. However, there are exceptions. Some campground businesses invest heavily in photos of their grounds and some offer videos of events they hold or on-site attractions.
Usability can’t be underestimated for campground web sites because their demographics are quite wide in scope. For example, there are retirees who travel from campground to campground. Some of them have cognitive (memory) issues with varying degrees of severity. Complicated navigation is aggravating when the navigation moves around from page to page or suddenly disappears altogether. Their hands may not be as steady, making some drop down navigation menus difficult for them to use. Eye sight problems for them include requiring reading glasses. If your web page font sizes can’t be increased in their browser, they will be frustrated. If they can increase the font size and your layout changes as a result, they may not be able to use the site.
Will these retired folks be using the Internet? You bet! Many of them stay in touch with their families and grand kids via email and cell phones and use the latest GPS gadgets, Google maps and the latest gizmos in their big rigs such as automatic levelers.
Families who book campgrounds will have interests that may surprise you. Their kids have iPods and video games. Some family members will want to bring their laptop. Most will have cell phones. If you’ve ever looked inside a family motor home of a tech bunch, it’s a mass of dangling cell phone chargers and cables. Campgrounds that offer wireless access, TV cable hookup and electric may want to promote this information on their homepage as a value proposition right away rather than tucking it inside an “Amenities” page.
Campgrounds that put their tent people away from noisier motor home guests may wish to note this on their web site.
To make your campground web site user friendly, try adding the following:
1. Make sure your site shows the area site map, with all the buildings, roads, camp sites, showers, etc. Offer a choice in how to access it online by letting visitors download it as a PDF or printing an image or sketch.
2. For campers who can not see, can’t download PDF’s or have images turned off because they’re on dialup, an audio description of the grounds would be helpful.
3. Be consistent with your colors, page layout and navigation.
4. Put your phone number at the top and bottom of every page and make it large enough to find quickly.
5. Watch your contrasts. Many camping sites have colored backgrounds with colored text, which make them hard to read. Text that’s all in boldface is difficult to read online.
6. Keep your copyright year up to date. Otherwise it may appear as though you’re no longer in business.
7. Communicate anything and everything that’s customer service oriented. Sometimes what you offer is the difference between someone booking your campground or the one nearby.
8. Make it easy for out of towners to make arrangements by posting links and/or phone numbers to car rental offices, vets, pet boarding facilities, beach tourist information such as beach passes, discount retail shops, camping supply stores, service stations that can handle RV’s (must have lifts for them), organic food and health centers.
9. Put testimonials on your camping site from previous guests.
10. Describe a typical day at your campground. This gives site visitors an idea of the environment, which helps them make educated choices.
11. Place all “call to action” prompts in highly visible spots like above the page fold and make them stand out. For example, a button for “Book Here” or “Reserve Now” and underlined embedded links within text that reads, “Stop by our calendar of events.” Avoid animation and blinking text.
12. Promote extra touches like your dog walk area, handicapped accessible camp store, locally made gifts, bait and tackle shop and dumping station on the premises.
13. Offer a way to stay in touch such as an email list or newsletter for regulars. Include coupons for return visitors to use, such as one free child admission or free pile of wood.
14. Place any sales or limited specials on the homepage. While your rates will likely not change much, there may be incentives to offer such as lower gas prices in the area, biodiesel, merchandise specials from the camp store, and fireworks for sale.
15. Display photos of staff and owners, a welcome message from the owners and office hours for reservations. Make sure emergency contact numbers are easy to find for guests who may run into trouble on their way there and need to alert you of any delays in their arrival time.
A user friendly, descriptive, customer experience oriented, persuasive web site will increase camping reservations. They’re a tool that many potential guests rely on, but they may not answer every possible question someone may have.
Once I booked a trip for my family looking for a peaceful weekend getaway and I chose a new campground based on their web site and its ease of use. However, we later learned that this particular campground has speakers set up all around the camping area and the owners made very loud announcements every few hours, starting at 8am in the morning. One day everyone in the campground was scolded for not putting their trash out properly.
There are some things even a web site can’t help us with.
Wednesday, August 3, 2011
Equity Lifestyle Fires Starting Gun for the Next Round of Acquisitions
The biggest news story in the manufactured home community business came on May 31, 2011 – so mark that date in your calendar for some type of anniversary celebration. That’s the date that Equity Lifestyle Properties announced that it was buying 76 communities from Hometown America for a staggering $1.4 billion price tag.
So why’s this such a big news story? For a bunch of reasons.
Sam Zell is no idiot.
Sam Zell did not make the Forbes 400 list by making bad purchases. In fact, his reputation at making smart buys is legendary. And he is very good at market timing. He got his start buying apartments in down cycles and riding them to the top. For him to make such a bold move signals that he believes that the market for manufactured home communities has hit bottom and is about to rise. Based on his reputation, most investors would not want to bet against him.
The size of the gamble.
Equity Lifestyle is a large, publicly traded company. Sure, they can take small gambles on all types of things. But $1.4 billion is not a small gamble. I bet a dollar on the slots at the airport coming back from the MHI convention (and I won $1.50), but I wouldn’t have bet $1,000 in a million years. So for someone of Zell’s ability to bet that type of money, you have to assume that he feels really, really good about his bet.
Supporting evidence is coming from all types of sources.
I received an email this morning that describes upward pressures on apartment rents. Why? Because people are losing their homes in droves, and the job market is lousy. But I thought that one item in the letter was particularly interesting: “19 years of continually more aggressive government intervention toward home ownership is about to reverse itself”. I think that’s maybe the most important point of all. The government is showing signs that they are going to abandon taking a proactive stance to help Americans obtain and retain mortgages on homes. That alone will sink home ownership and force families into more affordable alternatives.
And manufactured home communities stand to gain as much in this regard as apartment owners.
Our economy is 100% lousy, and Americans need more affordable housing.
The average two bedroom apartment rent in the U.S. is now over $1,000 per month. Yet around 20% of the U.S. population has a household budget under $20,000 per year. The growing sweet spot in U.S. housing is for options in the $500 to $700 per month range. And that’s exactly what manufactured home communities deliver. You can’t get any type of detached housing for anywhere near the low cost of manufactured housing – and that is never going to change.
Think that our job market and wages are going to improve? Then you must not read the papers – or the forecasts by most economists. I like their tacos, but a job at Jack-In-The-Box is not a high paying career, yet how many folks with decent jobs are having to fall back to that type of work?
Conduit debt for manufactured home communities is returning rapidly.
A vital component to a return to lofty real estate values is the availability of institutional debt. And that is making an appearance through good old fashioned conduit financing. Indeed, I attended a dinner in which a conduit lender announced that they would be doing around $100 million in conduit debt in 2011. This is a big part of the picture, and has been quietly coming on stage over the last six months.
Zell would not have made his bet without knowing that the financing market was also returning.
The biggest factor of all – INFLATION.
If you read a lot of economic reports (don’t forget that I was an economics major in college), you’ll see that just about everyone is on board with the projection of growing U.S. inflation. And what’s the most successful hedge against inflation historically? You’re right, it’s real estate. If inflation comes back with a vengeance, like most people are projecting, just owning real estate will appear a genius stroke. And when everyone figures out about the inflation problem – and the articles in the news are everywhere – the value of all real estate will rise as a hedge against the declining dollar.
There is no doubt in my mind that Zell reads these same publications.
So what can you do to take advantage of this situation?
If you already own a manufactured home community, then just smile because you won. If you don’t have one, then buy one before everyone else figures it out (but don’t make a stupid buy in your haste to do so).
I’m not much of a gambler, but I feel strongly enough about Zell’s bet that I’ve been matching it. I bought 3,000 lots over the past year. And so have a lot of other investors. Everyone’s been buying quietly. But now that Zell has fired the starting gun, we can all come out of hiding and reveal what we’ve really been up to for the past year or two, and start jogging along behind him. And I’m sure that on May 31st of each year I’ll make a toast to the great manufactured home community gold rush.
Q
So why’s this such a big news story? For a bunch of reasons.
Sam Zell is no idiot.
Sam Zell did not make the Forbes 400 list by making bad purchases. In fact, his reputation at making smart buys is legendary. And he is very good at market timing. He got his start buying apartments in down cycles and riding them to the top. For him to make such a bold move signals that he believes that the market for manufactured home communities has hit bottom and is about to rise. Based on his reputation, most investors would not want to bet against him.
The size of the gamble.
Equity Lifestyle is a large, publicly traded company. Sure, they can take small gambles on all types of things. But $1.4 billion is not a small gamble. I bet a dollar on the slots at the airport coming back from the MHI convention (and I won $1.50), but I wouldn’t have bet $1,000 in a million years. So for someone of Zell’s ability to bet that type of money, you have to assume that he feels really, really good about his bet.
Supporting evidence is coming from all types of sources.
I received an email this morning that describes upward pressures on apartment rents. Why? Because people are losing their homes in droves, and the job market is lousy. But I thought that one item in the letter was particularly interesting: “19 years of continually more aggressive government intervention toward home ownership is about to reverse itself”. I think that’s maybe the most important point of all. The government is showing signs that they are going to abandon taking a proactive stance to help Americans obtain and retain mortgages on homes. That alone will sink home ownership and force families into more affordable alternatives.
And manufactured home communities stand to gain as much in this regard as apartment owners.
Our economy is 100% lousy, and Americans need more affordable housing.
The average two bedroom apartment rent in the U.S. is now over $1,000 per month. Yet around 20% of the U.S. population has a household budget under $20,000 per year. The growing sweet spot in U.S. housing is for options in the $500 to $700 per month range. And that’s exactly what manufactured home communities deliver. You can’t get any type of detached housing for anywhere near the low cost of manufactured housing – and that is never going to change.
Think that our job market and wages are going to improve? Then you must not read the papers – or the forecasts by most economists. I like their tacos, but a job at Jack-In-The-Box is not a high paying career, yet how many folks with decent jobs are having to fall back to that type of work?
Conduit debt for manufactured home communities is returning rapidly.
A vital component to a return to lofty real estate values is the availability of institutional debt. And that is making an appearance through good old fashioned conduit financing. Indeed, I attended a dinner in which a conduit lender announced that they would be doing around $100 million in conduit debt in 2011. This is a big part of the picture, and has been quietly coming on stage over the last six months.
Zell would not have made his bet without knowing that the financing market was also returning.
The biggest factor of all – INFLATION.
If you read a lot of economic reports (don’t forget that I was an economics major in college), you’ll see that just about everyone is on board with the projection of growing U.S. inflation. And what’s the most successful hedge against inflation historically? You’re right, it’s real estate. If inflation comes back with a vengeance, like most people are projecting, just owning real estate will appear a genius stroke. And when everyone figures out about the inflation problem – and the articles in the news are everywhere – the value of all real estate will rise as a hedge against the declining dollar.
There is no doubt in my mind that Zell reads these same publications.
So what can you do to take advantage of this situation?
If you already own a manufactured home community, then just smile because you won. If you don’t have one, then buy one before everyone else figures it out (but don’t make a stupid buy in your haste to do so).
I’m not much of a gambler, but I feel strongly enough about Zell’s bet that I’ve been matching it. I bought 3,000 lots over the past year. And so have a lot of other investors. Everyone’s been buying quietly. But now that Zell has fired the starting gun, we can all come out of hiding and reveal what we’ve really been up to for the past year or two, and start jogging along behind him. And I’m sure that on May 31st of each year I’ll make a toast to the great manufactured home community gold rush.
Q
Friday, July 29, 2011
Budget Your Vacation
Sure, a vacation sounds good to you! A free or low-cost vacation sounds even better. But there are a few important points to remember when choosing vacation packages. If you don't think economically, and even cautiously, then your next vacation could actually turn out to be an extravagant bill you can't afford. Consider a four important points.
1.All Inclusive Trip?
You probably know of game shows where the contestant wins an all-inclusive trip to some place exotic. That's the key word to look for: all-inclusive. This usually means that the flight, the hotel stay and entertainment, and sometimes even the rental car are all included in one hopefully low bill. If your vacation does not say all-inclusive then you may be paying only for the flight or the hotel stay. Low-cost tickets to Disney land may sound like a good deal, but can you afford to fly the whole family, stay at a high priced hotel and get around town in a rental car?
2.Comparing the Costs
Some cautious vacationers have done the math on their own – and found some savings to boot. An all inclusive-vacation is convenient and sometimes can offer you a lower price in one combined subtotal. However, if you can find voucher coupons and don't mind investing some hours of research, you may be able to put together a vacation yourself with a subtotal that still beats the all-inclusive plan.
3.Will You Enjoy It?
This is particularly important for honeymoon vacations and family vacations. Older adults and young children tire easily, so plan a trip that your entire traveling party will enjoy. If you plan a trip just for the kids, it will be a long and expensive vacation for the adults. You may plan a trip that sounds fun to you, but what will your children do in the meantime? Will your honeymoon vacation take into consideration both the bride and groom's interest? Or will the two of you be so busy enjoying “room service” that you don't even get to see all of the popular sightseeing spots? One way to maximize the fun is to make a list of what your entire traveling party wants to do on the vacation and plan a trip accordingly. Sometimes a vacation that is actually enjoyable, and doesn't cause any frustration or disappointment, ends up being the most convenient.
4.Can You Afford The Full Vacation?
While some all-inclusive vacations take care of your every need, others merely will pay for the hotel stay and airfare. That means you still have to pay for food, entertainment and other vacation supplies. Can you afford to eat out every night? Does the hotel charge extra for food and beverages? If you cannot afford all of the vacation, then you may want to buy regular grocery supplies ahead of time and limit your outgoing dining to maybe once a day, or only a few times a week.
Ask yourself if you can indeed afford your vacation. If you're on a tight budget, then start planning well ahead of time.
Article By Adam O’Connor, www.RVTravelPro.com
1.All Inclusive Trip?
You probably know of game shows where the contestant wins an all-inclusive trip to some place exotic. That's the key word to look for: all-inclusive. This usually means that the flight, the hotel stay and entertainment, and sometimes even the rental car are all included in one hopefully low bill. If your vacation does not say all-inclusive then you may be paying only for the flight or the hotel stay. Low-cost tickets to Disney land may sound like a good deal, but can you afford to fly the whole family, stay at a high priced hotel and get around town in a rental car?
2.Comparing the Costs
Some cautious vacationers have done the math on their own – and found some savings to boot. An all inclusive-vacation is convenient and sometimes can offer you a lower price in one combined subtotal. However, if you can find voucher coupons and don't mind investing some hours of research, you may be able to put together a vacation yourself with a subtotal that still beats the all-inclusive plan.
3.Will You Enjoy It?
This is particularly important for honeymoon vacations and family vacations. Older adults and young children tire easily, so plan a trip that your entire traveling party will enjoy. If you plan a trip just for the kids, it will be a long and expensive vacation for the adults. You may plan a trip that sounds fun to you, but what will your children do in the meantime? Will your honeymoon vacation take into consideration both the bride and groom's interest? Or will the two of you be so busy enjoying “room service” that you don't even get to see all of the popular sightseeing spots? One way to maximize the fun is to make a list of what your entire traveling party wants to do on the vacation and plan a trip accordingly. Sometimes a vacation that is actually enjoyable, and doesn't cause any frustration or disappointment, ends up being the most convenient.
4.Can You Afford The Full Vacation?
While some all-inclusive vacations take care of your every need, others merely will pay for the hotel stay and airfare. That means you still have to pay for food, entertainment and other vacation supplies. Can you afford to eat out every night? Does the hotel charge extra for food and beverages? If you cannot afford all of the vacation, then you may want to buy regular grocery supplies ahead of time and limit your outgoing dining to maybe once a day, or only a few times a week.
Ask yourself if you can indeed afford your vacation. If you're on a tight budget, then start planning well ahead of time.
Article By Adam O’Connor, www.RVTravelPro.com
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