Running a mobile home park comes with its share of worries. Some are general concerns like taxes and the economy, but many are specific to park ownership itself. Let’s break down the biggest fears park owners face today — and practical ways to manage them.
Dealing with City Hall
No mobile home park owner can afford to ignore the possibility of city officials creating problems. From code enforcement to restrictions on bringing in new homes, it’s a real concern.
The good news is you can protect yourself upfront. During due diligence, request a Certificate of Zoning. This document shows the number of lots you’re allowed, the zoning classification, and whether the park is legally operating. If the park is "legal conforming" or "legal non-conforming (grandfathered)," your rights are strong.
It’s also smart to ask for any existing code violations. A clean record suggests a good relationship with the city and sets a baseline for expected property conditions. And if you do need to bring in new homes, higher court rulings have consistently backed park owners — a fact most city attorneys know well.
Weather Risks
Every region has natural disasters to worry about, from tornadoes to wildfires. The key is knowing your risks and carrying the right insurance.
Hurricane-prone areas near the coast carry more risk, but many inland locations are far safer. Historical tornado data shows that the Southeast, not the Midwest, has the highest frequency of tornadoes.
If disaster strikes, insurance will be your best line of defense. Agencies like FEMA and the Red Cross also act quickly to help communities recover. Many parks bounce back faster than expected after storms.
Water and Sewer Failures
Older parks often have galvanized water lines and clay tile sewer pipes, patched over the years with PVC. Frequent repairs can be a nuisance, but complete system failure is rare in the short term.
To prepare for the future, build a capital reserve fund. Some lenders now require it as part of financing.
New technology is also making major repairs less expensive. "Pipe bursting," for example, uses hydraulics to crush old sewer lines and pull in new PVC pipe — often at a fraction of traditional replacement costs. There’s even emerging technology for lining old water pipes with plastic, creating a new pipe within the old one. Costs continue to drop as these methods become more common.
Liability Concerns
Slip-and-fall claims top the list for insurance payouts in mobile home parks, with dog bites not far behind.
Prevention is key:
- Remove dead trees and branches right away.
- Fix trip hazards like broken curbs and potholes.
- Enforce rules against aggressive dog breeds, trampolines, and swimming pools.
Carrying strong liability insurance — typically $1 million or more — provides added protection in case something does happen.
Private Water and Sewer Systems
Private utility systems can be a constant source of stress. Unlike other risks, insurance won’t cover a major system failure.
The best protection is thorough due diligence. Confirm that permits are up to date, replacement rights are secure, and the condition of the system is fully understood.
It’s also wise to know exactly how close city utilities are. If your private system becomes too costly to maintain, hooking up to city services may be the ultimate backup.
Interest Rates Uncertainty
Many owners remember the 1980s, when mortgage rates soared above 15%. Today’s situation is very different. As of early 2025, the U.S. holds over $36 trillion in national debt. Sharp rate hikes like those seen decades ago would strain the federal government and the broader economy in ways that are difficult to imagine.
The more likely scenario at this point is decreasing rates, as that increases spreads with cap rates and makes mobile home parks more valuable while also decreasing borrowing costs.
The biggest risk right now with interest rate instability is the time it takes to refinance your property. You may have to shop around a number of lenders and should give yourself plenty of time to accomplish that. As a rule, you should start working on your refinancing about a year ahead, so that you are never in a rush to find a lender and get it completed and, if you fail, you still have time to sell the property off before the loan comes due.
Unlikely Prosperity Booms
In the 1950s and 60s, park owners worried that mobile homes would fall out of favor as people moved into booming suburban developments.
Today, that fear barely registers. With more than 50% of Americans receiving some form of government assistance and the continued retirement of Baby Boomers — over 11,000 per day now — the demand for affordable housing remains strong. Mobile home parks fill a need that isn’t going away anytime soon.
Final Thoughts
Stress is part of ownership, but it shouldn’t take over. Most risks that come with owning a mobile home park can be planned for and managed. Solid due diligence, good insurance, steady maintenance, and a realistic view of the market go a long way toward keeping your investment — and your peace of mind — safe.