Private vs Resident-Owned Parks

An Important Consideration

The differences in privately-owned parks and resident-owned parks can be compared to renting an apartment vs. buying the apartment (condo). The resident-owned parks are just that ... 'condo type' ownership of the park which includes your lot.

One real advantage expressed by some owners in resident-owned parks is that they do not have to put up with poor park management. Of course there are some park managers/owners who are better than others but there can also be some condo boards that are better than others.

The important thing is to make sure you understand the differences and then choose based on your own preferences.

Those who are shopping for the first time are often reluctant to make the larger investment of buying into a resident-owned park so will tend to 'try out' the lifestyle by renting their lot in a private park and only risking the price of the trailer.

But once they settle on a park and become a part of the community they may tend to stay in that same park. Even if they regret (later) not buying into a resident-owned park it is now tough to move and start again.

If you think you would prefer a resident-owned park, but are not ready to make the investment, then you should consider just renting the trailer in your chosen park to see what it is like.

Budget

The number one issue is budget. There is a considerable difference in the 'original' investment required to buy into a resident-owned park rather than renting a lot in a private park. (see: how much will it cost me section) The difference of buying at (say) $15,000 compared to (maybe) $100,000 or more is understandably a huge impediment to choosing a resident-owned park.

But there is also a budget advantage. As you are not paying rent your annual operating costs are lower. You will be assessed a form of 'condo fee' but that is less than you would pay when renting your trailer lot in a private park.

And you can feel comfort in knowing that any monthly fee increases are based on actual cost increases and less subject to inflationary market/supply forces. 

The 'Security' Advantages of Resident-Owned

There are two 'primary' advantages of resident-owned parks. They both relate to the security that is important to many retirees.

1. Security of Investment

   Many people strongly prefer owning their properties, whether it is their house or condo 'back home' or their winter residence.

   Buying your own lot and your share (in the park ownership) can be a good hedge against future potential inflation.

   At the time of retirement most seniors want the comfort of knowing what their costs 'are going to be'. Those living on primarily fixed incomes do not want to get hit by inflationary pressures in later years.

   Despite the current downturn in real estate prices the properties in resident-owned parks have not been subject to the same negative impact. Over time, the property values in resident-owned parks has risen. There is no reason to believe that this will change over the next few years.

   Of course economic forces will affect all properties and all properties are subject to swings in the marketplace. But the huge baby boomer market that may soon impact all retirement facilities could easily drive up prices in the fairly near future.

2. Security in Participation

   As a shareholder in a resident-owned park you have both the right and the opportunity to participate in the decision-making process.

   While some people may prefer not to participate, there is comfort in knowing that you do have that right and (maybe most important) that those making the decisions are residents just like you.

   The decisions being made are intended to be in the best interests of the park residents. Budgets, facilities, rules, activities, and all operating procedures are managed by an elected board.

   While you may not like some of the decisions that are taken, at least you have an opportunity for input.

There can be other risks associated with renting in a private park compared to investing in the owner parks.

Although rare, it 'has happened' where a private owner decides to sell the property for some new major development. In that case all the trailer owners have a problem. The cost to move to another park is one issue but also the age of the trailer may even prevent that.

A private park can also be sold to new owners who decide to change the rules, rents, or other things impacting the residents. But market forces are also at play and any owner is wise to provide good customer service if they want to be successful in the long haul.