I hope you enjoy your holiday well. Some may be in mobilhome.If you are in a nice campsite, you certainly paid 1,200 €/week to rent these 35 m2 of plywood 🙂 A paragraph of Ludovic Matten’s book (page 55) explains how Jean-Pierre, a bold investor bought 5 mobile homes in Savoie and gets them… .22% net profitability! So I asked Emmanuel the seasonal rental pro to investigate this juicy business… but very described! It’s up to you to play Emmanuel:
In this article, we will try to answer the existential question that any investor asks himself at the arrival of sunny days: investing in a mobile home, is it really profitable?
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Invited to the kingdom of naked rental, to the paradise of passive income, this intrusion of furnished rental, in addition seasonal, at the heart of the same Immeuble de rapport must not make us forget, that whatever the investment medium, it is important to find shoe at his foot, to find an investment that corresponds to its values, its principles.
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Investment in a mobile home is to say the least described on the net. Literature is abundant and the subject unleashes passions.
In short, a sensitive subject, to be treated with tweezers so as not to trigger the lightning of discord.
Plan de l'article
Survey at the heart of the most controversial seasonal investment.
But first of all I will just tell you the story of this article.
I have been renting seasonal since 2010.
I embarked on this adventure a little by chance after tasting the joys of naked rental.
I have a small house by the sea in Brittany that I rent seasonally all year round.
When I bought this house i did not have a specific purpose.
I just had to reach self-financing, and that this house didn’t cost me anything.
Some time ago I wanted to push the rental machine to the maximum.
I wanted to see how far we could go in terms of renting overnight stays.
I had already heard of an old Breton legend from the forest of Brocéliande where Merlin the enchanting lived (not LEROY of the same name). The heroine of this epic had more than 50 weeks of rental a year.
That figure seemed to me totally incredible and unreasonable.
But for a few weeks, I confess that my latest rental results are not far from it.
2015 promises to be a good vintage.
In short, I display full most of the year and it’s time to invest in a new profitable investment.
Here’s how the idea of buying a mobile home got me crossed the head on a beautiful morning in June.
Advantages of buying a mobile home
At first glance, buying a mobile home has quite incredible advantages:
• A very low purchase cost (for 40/50,000 € you have a high-end HD).
• 20% VAT recovery at purchase (depending on some).
• Weeks of rental at more than 1200€ in high season (for my part it is max 700€).
• Maximum services for holidaymakers with generally for the most starred campsites: swimming pool, restaurants, mini market…
• No property tax, no housing tax.
The disadvantages of the mobile home
But as soon as we look for a little, buying a mobile home to rent it has quite a lot of drawbacks:
• An opening period that may be limited in time and does not necessarily cover the year whole. Generally, outdoor hotels (official names of campsites) are open from April to October.
So the problem is that in seasonal rental there is an old saying that a lost week is a lost week: you can never get it back.
And here, in this case, it’s about 5 months out of 12.
• A rental of the plot between 3000 and 5000 €/year.
• A rental of the plot with an annual contract, the rent of which is rarely reduced (I’m nice), from year to year.
Not to mention the clauses which, of course, can change favorably or not.
Once you are installed, it is difficult to change your camping mobile home, nor to put it in your garden, it is forbidden.
• Charges that can be extra: water, electricity, gas, Wi-Fi.
• Some campsites do not allow you to manage directly your property. It is absolutely necessary to go through their booking center against the small sum of 30% to 50% of your CA.
For this price, usually the campsite takes care of everything: search for tenants, check in/out, cleaning…
• Practices that some do not hesitate to describe as abusive:
- Obligation to renew your mobile home every 7 or 10 years. The connection fee may be at your charge.You will not be able to keep your old mobile home.
You will regret your old mobile home
- A purchase of the mobile home that is not free. You must choose your mobile home among the builders affiliated to the campsite to respect the visual charter.
- Some campsites ask at the beginning of the year the names of the people who will come on the plot (otherwise you have to pay a fee additional), or limit the number of people to be accommodated in the mobile home
• A lifespan of the mobile home which is 25 years for residential in theory. In practice and for rental, I think 10-15 years would be the maximum.
A camping boss told me, rightly so, that it was like a car.
If you do maintenance regularly and change what is to change as you go, you can push your mobile home for a very long time.
And on the other hand, what he forgets to say is that we have little chance of attracting customers with a car watch even well maintained.
For example, this beautiful Citroën Visa repainted in gold which I hope will evoke good old memories but that few people today would like to drive.
• Finally, the recovery of 20% of VAT on purchase is also very controversial (benefiting from the status of LMNP with para-hotel services).
Some argue that this is possible and advise their client without being an accountant.
Dear readers, dear readers, if the heart tells you, you will be able to make your contribution in the comments.
I was going to tell your stone to the building but the mobile home does not seem to be a real estate if it keeps all its mobility (wheels and arrow…).
By the way also impossible to buy it with a classic real estate credit.
So should we invest in a mobile home?
Even if the list is long, not all campsites have all these types of disadvantages of course. And there must well exist the rare pearl with contracts favorable to the owners.
You will have noticed that I didn’t not talking about investors but about owners.
I had started a numerical simulation but given all the uncertainty of the initial data, I do not think the result is very significant in either way.
So beyond any mathematical consideration, let’s try to have another approach and reverse roles for example.
So, if I was an outdoor hotel manager and saw a guy like me arriving to do seasonal rental, honestly, I would do everything to ensure that he doesn’t eat in my bowl.
😉 Do you serenely think that a campsite manager would let you quietly make maximum money at home watching you gave you?
Between us, it’s a little normal.
The best way to deter me from investing is precisely to make sure the project is not profitable enough and Secure.
The contractual clauses are only there to remind you who is doing business here.
A good father will most certainly be attracted by the gain of a few weeks rented to cover his annual expenses.
But an investor may not settle for such a meager profit if there is one.
For my part, it’s all thoughtful, I will not take my pilgrim stick to search for the desired campground.
I’m going to go back in search of a small dwelling in a nice condominium.
Have you ever invested in a mobile home? If not, are you going to do it now? What makes you most afraid of buying a mobile home?