Mobile Home Park Due Diligence Checklist

The numbers look good. You're ready to make an offer. Before you close, you need to verify everything—and uncover what the seller isn't telling you.

This guide provides a complete due diligence checklist for mobile home park acquisitions. Use it to inspect every critical system, verify every claim, and avoid expensive surprises.

Infrastructure Inspection

Infrastructure is where deals die. Before you close, verify every critical system.

Sewer and Septic Systems

1. Determine system type (ask seller, verify with county) 2. For septic: request pumping records, hire septic inspector ($300-$500 per system) 3. For lagoons: request EPA/state compliance records, hire environmental engineer 4. Walk the drain field areas—soggy ground or sewage smell = problem 5. Check if expansion space exists for future repairs

Water Systems

1. Get a professional water quality test ($150-$400 for bacteria, nitrates, minerals) 2. Verify flow rate meets demand (budget 80-100 gallons per day per resident for conservative planning) 3. Check pump age and condition (pumps last 10-15 years, replacement $3,000-$8,000) 4. Confirm backup options if well fails

• Walk the park looking for leaks (wet spots, running water sounds)
• Check water meters or main meter for unusual readings
• Verify who pays water bill and how (submetered vs. included)

Electrical

1. Check electrical panels at each pedestal (look for damage, outdated equipment) 2. Verify amperage (most homes need 100-200 amps) 3. Look for exposed wiring, jerry-rigged connections 4. Check if underground or overhead—overhead is cheaper to repair

Roads and Drainage

Roads are expensive to replace ($50,000-$200,000 for a full park).

1. Drive every road—look for potholes, cracking, base failure 2. Check drainage patterns—where does water go during rain? 3. Look for standing water, erosion, or washed-out areas 4. Ask about last resurfacing or major repairs

Physical Walkthrough

You cannot inspect a mobile home park from your car. Walk the entire property—front and back of every home.

Walk Behind Every Home

The back of homes is where problems hide:

• Illegal dumping (appliances, trash, debris)
• Disconnected sewer lines (yes, really)
• Drainage problems (water pooling against homes)
• Unauthorized additions or structures
• Evidence of unreported residents

Assess Home Condition

Even if you're not buying the homes (lot-rent model), home condition affects your park:

For park-owned homes, enter each one. Exterior condition doesn't tell you about:

• Hoarding
• Interior damage
• Safety hazards
• Pest infestation

Vacant Lot Assessment

Each vacant lot is potential income—or potential liability.

• Clear, buildable condition
• Utility connections intact or capped properly
• Any environmental issues (old tanks, debris)
• Zoning compliance for new home placement
• Access for home delivery

Talk to Tenants

Don't skip this. Tenants know things the seller won't tell you.

• How responsive is management to maintenance requests?
• Have there been recent rent increases? How much?
• Are park rules enforced fairly?
• Are you planning to stay or move?
• What do you wish was better about the park?

Even brief conversations reveal management quality, tenant satisfaction, and potential problems. Unhappy tenants = future turnover.

Common Areas and Amenities

Inspect all shared spaces:

• Clubhouse/office (condition, deferred maintenance)
• Laundry facilities (working equipment, revenue potential)
• Playground (safety compliance, liability)
• Pool (if applicable—expensive to maintain or close)
• Mailbox area
• Dumpster/trash areas

Document Review

Verify everything on paper. Request these documents during due diligence:

Financial Documents

Legal and Regulatory Documents

Infrastructure Documents

Manager/Staff Transition

If there's an on-site manager or maintenance staff:

• Are they staying after the sale?
• What are their compensation and terms?
• Do they have employment contracts?
• What's the transition plan if they leave?

Losing an experienced manager immediately after closing creates operational chaos. Understand the staffing situation before you close.

Legal and Regulatory Verification

Zoning Compliance

• Current zoning designation
• Any conditions or restrictions
• What happens if you want to add lots
• What happens after major damage (can you rebuild?)

Environmental Assessment

A Phase I identifies potential contamination from:

• Previous land uses (gas stations, dry cleaners, industrial)
• Underground storage tanks
• Dumping or hazardous materials

Title Search

Verify:

• Seller has clear title
• No liens (tax, mechanic's, judgment)
• Easements and restrictions
• Any pending litigation involving the property

• Title search and insurance: $1,000-$3,000+ (based on purchase price)
• ALTA survey: $3,000-$10,000+ (varies by acreage)
• Boundary survey: $1,500-$5,000

Home Title/Registration

Mobile homes are often titled as personal property (like cars), not real estate. Verify:

• Park-owned homes have clear titles in seller's name
• No liens on individual homes
• Registration current with state DMV (varies by state)

This is messier than you'd expect. Budget time for title cleanup.

Market Due Diligence

Comparable Lot Rents

Before assuming value-add through rent increases, verify market:

• Call 3-5 competing parks (pretend to be a prospective tenant)
• Check MHVillage.com for local listings
• Ask local property managers
• Review recent comparable sales

Economic Indicators

Competition Analysis

• How many other parks within 10-mile radius?
• What's their occupancy?
• What amenities do they offer?
• Are they raising rents?

Test the Demand

Before closing, run a test:

• Post an ad for a vacant lot on Craigslist, Facebook, MHVillage
• See how many inquiries you get in a week
• Gauge demand and price sensitivity

This takes 15 minutes and could save you from buying in a dead market.

Due Diligence Timeline

Typical due diligence period: 30-60 days.

The Checklist

Use this checklist to track your due diligence progress:

• [ ] Sewer system type identified and inspected
• [ ] Septic systems pumped and inspected (if applicable)
• [ ] Water system verified (city or well)
• [ ] Well water tested (if applicable)
• [ ] Electrical systems inspected
• [ ] Roads assessed for condition
• [ ] Drainage patterns evaluated

• [ ] Walked behind every home
• [ ] Assessed condition of all homes
• [ ] Inspected all vacant lots
• [ ] Evaluated common areas and amenities

• [ ] Rent roll verified against bank statements
• [ ] 12-24 months P&L reviewed
• [ ] Utility bills obtained and verified
• [ ] All leases/lot agreements reviewed
• [ ] Property tax bills confirmed

• [ ] Zoning verified (conforming or grandfathered)
• [ ] Phase I ESA completed
• [ ] Title search completed
• [ ] Home titles verified (if POHs)
• [ ] Insurance reviewed

• [ ] Comparable lot rents verified
• [ ] Economic indicators checked
• [ ] Competition analyzed
• [ ] Demand tested (if possible)

When to Kill the Deal

Some issues are negotiable. Some aren't.

• Deferred maintenance (if you can estimate cost)
• Below-expected occupancy
• Minor infrastructure repairs needed

• Lagoon or treatment plant has compliance issues
• Phase I reveals serious contamination
• Seller's financials don't match bank statements
• Zoning issues threaten continued operation
• Infrastructure costs exceed your budget
• Market demand is weaker than expected

• Seller refuses to provide documents
• Title issues can't be resolved
• Environmental contamination is confirmed

There are other deals. Protect your capital.

Next Steps

Passed due diligence? Time to close:

• Mobile Home Park Financing — Secure your funding
• Mobile Home Park Investing Guide — Review the full process