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Design for the Season: Model Homes and Clubhouses Staged to Sell

Design for the Season
The Rio Grande adding rug, pillows and Fall accessories. Credit Lisa Stewart Photography.

Design for the Season to Sell Manufactured Homes

It’s magic. Just like when the magician moves scarves through the air, moving and adding seasonal decor to your homes and clubhouses can make sales reappear. Sales can leap if you design for the season.

This is true even after a home has been in inventory for longer than you had wished.

Design for the Season
The dining area with larger artwork, table set, and ready for Spring image. Lisa Stewart Photography.

Clayton Homes of Desoto, Texas, asked The Lifestylist Brands to update its existing homes. They asked that we use as much of the existing decor as possible.

Yes, this seems like a tall order, but it’s something that good interior designers and merchandisers can make work each day.

Rearranging furnishings and decor expends a great deal of energy. However, an earlier, important step in the process is to rid the home of dated, damaged furniture and decor. To keep that old stuff only makes the home look and feel used. Rather, we want to show the beautiful new home it is!

Work Only With the Best Options You Have

It’s so easy when you are busy selling homes to forget what happened to the leg of a sofa, or for upholstery to get stained or faded and remain on the floor. And many times, it’s difficult to buy something new. So what do you do?

Our goal at The Lifestylist is to get customers excited about moving into a new home, a place no one has ever lived, a place where the owner can start a new life. It’s important that the home looks as fresh as your customers’ dreams.

Customers look for bright, open floor plans. So now more than ever, it’s important that curtains are pulled open, blinds are up and windows are washed.

We want to fill your home with natural light!

Every lamp in the home is turned on in the months when we are short on daylight. And every lamp and fixture should use an LED bulb. Energy-efficient bulbs cost a little more off the shelf, but they last for decades. And you can take them from house to house as places sell.

Design for the Season
Christmas-themed pillow covers are easy to change out after the holidays. Photo credit Lisa Stewart Photography.

Re-staging for the Season

In the process of re-staging the Clayton homes, we decided to take a little extra time to stage a few homes for the holidays. We did a two-day professional photo shoot for images that could be used on social media, in advertising and for editorial opportunities.

Plan photos that will be useful so you can have them ready upon request. For Instagram, you will need a square shot, yet advertising or your website might need more overall room shots. On other social media, where images are small by comparison, it’s better to have a focal point in a room that is easy to view.

We decided to do staging with the Rio Grande model for Fall, Halloween and Thanksgiving. And we used the Drake for Winter and Christmas. This gave us plenty of opportunity to design for the season with different looks and styles that could appeal to a range of buyers. And it worked well, because the models come at two distinctly different price points.

Area Rugs and Pillows Help to Design for the Season

For the Rio Grande, the first thing we did was add color and texture to the main room. Area rugs are an easy and inexpensive way to add color, and with so many of our homes having rooms with wood or tile flooring, it’s good to achieve a warmer and more inviting look.

Area rugs also offer an easy way to seasonalize your home — use a rug with darker, warmer colors in the cooler months, and change out to a sisal or lighter green colored rug in the summer.

Pillows provide yet another easy and inexpensive way to change the look of your homes. It’s fun to have cases sewn that allow you to change out looks and easily store away out-of-season designs.

Our first priority always is to sell homes, not decor kits. So we want to make sure that the staging helps accent the important attributes of the home, rather than being the focal point. In the Rio Grande, we decluttered the open shelves above the kitchen cabinets and took everything but a few focal pieces off the countertops and island.

Design for the Season
The Fall themed tabletop adds personality to the entire home Image. Credit Lisa Stewart Photography.

Develop a Theme that Helps Design for the Season

Pick a theme that is consistent throughout the home for a clearly well thought-out decor. The last thing you want is the impression that you’re designing randomly with items you found in a storage closet.

We like to pick not more than three colors to focus on, so the palette doesn’t get too busy or steal attention from the home. For the autumn theme, we went with those lovely fall colors, foliage and foxes. During Halloween time, we found cute vintage accessories and key orange accents in each home. And for Thanksgiving, we went with a theme of giving thanks and reminding people how appreciative we are of their business.

Most importantly, notice that a lot of items were used in all three looks. We simply changed out the main themed items.

How to Work with a Centerpiece

Don’t forget tabletops when you want to seasonalize your homes. It’s hard to believe how many models overlook this very important part of the home: plates, napkins, and placemats add texture and color to a room that might only have wood floors, wood furniture and painted walls.

The Drake model was a perfect example of a home that was full of hand-me-down furniture and decor items that not only hurt the look of the home, but made it feel dark.

We pulled out some cream upholstery from another home, as well as chrome cocktail and end tables. The results were amazing. This change helped the home to sell quickly, and orders were placed for custom homes as well.

Using large artwork also helped this home feel upscale and updated … and this was wall art stored away in a closet that came to us at no cost.

Design for the Season
Winter Grays for a more contemporary look. Credit Lisa Stewart Photography.

Try a Vintage Look in Your Next Redesign

For Christmas, we did a vintage RV/mobile home theme that was a huge hit.

Did you know that vintage-styled mobile homes are trending? You’ll be seeing a lot of this during the 2018 holiday season. Nearly every recent furniture market we tour notes this practice.

For the winter wonderland, we used a very cool color palette of grey and cream, which had a rich and contemporary feel.

Just like every retail store you visit, we need to keep our homes looking updated and providing customers a reason to come back. By using a design for the season and taking the time and investment to photograph your hard work, you’ll keep traffic up and sell more homes.

Get more from Suzanne Felber at The Lifestylist.

6th Annual NCC Fall Leadership Forum Begins Wednesday

6th Annual NCC Fall Leadership Forum at Westin Michigan Avenue in Chicago
The NCC Fall Leadership Forum takes place each November at the Westin Michigan Avenue in Chicago. Photo courtesy of Westin Michigan Avenue.
NCC Fall Leadership Forum Open Registration Begins Wednesday at 4 p.m., with Opening Reception that Night and a Full Schedule of Activities Thursday through Friday Morning

6th Annual NCC Fall Leadership ForumThe National Communities Council, a division of the Manufactured Housing Institute, hosts community operators, service providers, brokers and lenders Wednesday through Friday in Chicago for its 6th Annual NCC Fall Leadership Forum.

Summary of Activities for NCC Fall Leadership Forum

Thursday, Nov. 8

9 – 10:15 a.m.: Trends for Manufactured Home Communities with Dr. Henry H. Fishkind.
10:15 – 11 a.m.: Legislative & Regulatory Update with Dr. Lesli Gooch of MHI.
11:15 – 12:15 p.m.: The Crisis: Managing Residents, Regulations and the Media in 2019 and Beyond.
12:15 – 1:15 p.m.: Networking Lunch sponsored by UMH Properties.
1:30 – 2:30 p.m.: State of the Market – Community Financing Trends in 2018 & Beyond with an industry panel.
2:45 – 3:30 p.m: Determinants of Site Rent: An Economist’s Analysis with Charles E. Becker, Ph.D., Duke University.
3:30 – 4:30 p.m.: Today’s Chattel Lending Environment with a moderator and industry panel.

Friday, Nov. 9

9 – 10 a.m.: The Future of Social Media for Manufactured Housing with Crystal Washington, CSP, Technology Strategist & Certified Futurist.
10 – 10:45 a.m.: Selling More Homes & Marketing Your Community with Lisa Lane, Four Leaf Properties.
11:00 a.m. – Noon: Resident Relations: The Role of Customer Service with an industry panel.

6th Annual NCC Fall Leadership Forum
Photo courtesy of Westin Michigan Avenue.

MHI Designed NCC Fall Leadership Forum with Executives in Mind

The full schedule for the 6th Annual NCC Fall Leadership Forum is on the MHI website, along with details on registration and accommodations. The Westin on Michigan Avenue is the venue for the 2018 NCC Fall Leadership Forum.

Event organizers said the forum becomes larger each year, generating networking opportunities and resulting in more business deals.

NCC Fall Leadership Forum offers a strategic look at high-level issues facing the community segment of the manufactured housing industry, with participants from across the country

The event is designed to allow executive professionals to engage and connect with their peers. All attendees benefit from being presented with insight on the latest industry trends and activities. Furthermore, the event will capitalize on what has been a strong year in the manufactured housing industry, with the prospect of a bright 2019 ahead.

The NCC Fall Leadership Forum looks to minimize time out of the office and maximize education and interaction with peers and potential clients. 

Thursday’s full day of programming will open with breakfast. That night features an evening reception at 360 CHICAGO in the John Hancock building.

Questions regarding the event can be directed to events@mfghome.org.

Equity LifeStyle Properties Finds Success in RV/MH Property Mix

Equity Lifestyle Properties, a Chicago-based REIT

Chicago-based REIT Equity Lifestyle Properties Expands Three Communities in Arizona, Texas

Equity LifeStyle Properties is expanding in interesting ways, bringing more manufactured homes to RV properties in a fashion that creates a destination lifecycle for customers.

The company has more than 400 properties with nearly 154,000 sites across the country. With that, Equity LifeStyles owns one of the nation’s largest networks of real estate.

While ELS has a near-equal mix of manufactured housing communities and RV resorts/campgrounds, it is currently leading the trend of blending the two models into a single community.

Equity Lifestyle Properties home in Lake Conroe, Texas
One of the home styles available at ELS’ Lake Conroe property.

Ron Bunce, senior vice president for 150 ELS properties in the company’s western markets, oversees several blended communities. Included in his territory are three properties in Texas and Arizona currently undergoing this type of mixed property expansion.

“What we continue to see from our RV customer is an interest in staying connected to their destination property and the relationships they have built there,” Bunce said. “Traveling by RV and managing multiple destinations can become challenging, leading many to prefer the conveniences of a manufactured home in the resort they previously enjoyed in their RV.”

Chicago-based Equity LifeStyle Properties became a public company in 1993. At the time, it had a portfolio of 41 manufactured home communities. For many years, the company’s core business consisted of retirement communities in Sunbelt destinations. Yet, through extensive property acquisitions during the recent 15 years, ELS entered the RV business, a property type that continues to be a valuable component of the company’s operations.

Fortunately, the addition of RV appears a natural fit for the company.

“The business models of MH communities and RV communities are very similar,” Bunce said. “We saw it as a logical combination of property types because they are operationally similar, as is our customer base among the communities.”
Equity Lifestyle Properties in Mesa, Ariz.
The pool at Monte Vista in Mesa, Ariz.

The Expanding Properties

ELS purchased a pair of Mesa, Ariz., RV resorts in 2004 from separate owners. Both properties are in the midst of expansion projects, bringing a sizable MH component to each of the resorts.

ViewPoint RV and Golf Resort has a mix of more than 2,000 sites that hold RV, park models and manufactured homes.

“Our expansion project at ViewPoint has added 235 manufactured home sites so far, with another 200 planned,” Bunce said. “It’s a unique community in that it features 27 holes of golf. We have an 18-hole championship golf course, with an additional 9-hole executive par-3 course.”

ViewPoint also offers the resort-style amenities you might expect: swimming pools, tennis club and softball fields.

“We have softball players ranging in age from 55 to 90, including some in their 80s who throw a mean fastball. It is truly something impressive,” Bunce said.

“There are hundreds of people in the tennis club, and we have great pickle ball courts and a fitness center,” he said. “There are 50 different club and hobbyist groups at ViewPoint. That’s why our customers either come back year after year or decide to stay for good. They want to socialize, have fun and be creative.”

Monte Vista Village Resort

The other ELS expansion property in Mesa, Ariz., is Monte Vista Village Resort. It is a community with nearly 950 sites, including 115 manufactured housing expansion sites.

“Our target customer is the retiree or Baby Boomer group,” Bunce said. “And we found that a 1,300-square-foot, 2- or 3-bedroom home appeals to that buyer. Many will spend the winter months with us, and some will decide to stay year round.

“Traditionally, our customers have been in a time in their lives when they are looking to sell their home, often in a northern part of the country. They visit our resort and find the house, community atmosphere, social engagement and, of course, the weather they’re looking for here,” he added. “Increasingly, we’re now also seeing people who already live in the Phoenix area coming to us for those same reasons.”

The community shares common space and amenity packages similar to ViewPoint. However, rather than golf courses, it offers lawn bowling, billiards, horseshoe pits and extensive crafting facilities. This includes dedicated rooms for lapidary arts, silversmithing, woodworking and pottery.

A Lakeside Village North of Houston

Equity Lifestyle Properties
A view from the community at Conroe Lake in Texas.

ELS purchased the Thousand Trails network of campgrounds in 2008. Among the more than 80 properties in the portfolio was Thousand Trails Lake Conroe, a lakeside campground about an hour north of Houston. Since then the company completed an expansion project for the property. It incorporates additional RV sites, as well as 50 new manufactured home sites.

“Our manufactured homes in the property have been very popular,” Bunce said of Thousand Trails Lake Conroe. “We sold out the first 50 MH sites and we just started a project adding another 67 RV sites.”

Additionally, the property features lake access that draws many visitors. Residents bring small watercraft to enjoy on the popular 21,000-acre swimming, fishing and boating lake north of Houston.

“Having access to the lake is very important to our customers,” he said. “We offer a number of boat slips for residents and guests, as well as a boat launch on the property. There’s also a covered outdoor social area, an indoor lodge, a large swimming pool with cabanas, tennis courts, a fitness center and dog park.”

Equity LifeStyle Properties purchases homes from many manufacturers. However, its recent western expansion projects have resulted in a focus on Cavco products for both manufactured homes and park models.

Equity Lifestyle Properties
ViewPoint RV and Golf Resort in Mesa, Ariz.

The Future of Growth at Equity LifeStyle Properties

Acquisitions also contribute to portfolio growth at ELS. Through the first seven months of this year, the company acquired four properties in Florida, adding nearly 1,900 sites to the portfolio. Of these, three were manufactured housing communities.

The other key element to the ELS growth and investment strategy is development.

Expansion properties under consideration are evaluated for…
  • Market conditions
  • Demographic trends
  • Zoning and entitlements
  • and infrastructure requirements
In all cases, ELS seems intent on making additions and changes that its customers find favorable. Bunce said the company is able to gauge interest from website activity and social media, but also heavily weighs customer sentiment and satisfaction through one-on-one conversations, meetings with homeowners’ associations and responses to customer satisfaction surveys.

“We have a lot of different ways to measure and ensure we’re responsive to our customers,” Bunce said.

Among those measurements is likely the company’s solid history of occupancy growth. Occupancy in ELS manufactured home communities sits at nearly 95 percent, and the company has had 35 consecutive quarters of occupancy increases across the portfolio.

“We work hard to ensure we’re providing the lifestyle offerings our customers are looking for,” Bunce said.

Favorable Trends for Equity LifeStyle Properties

Equity Lifestyle Properties home interiors
The kitchen and living area of a home in the Lake Conroe property.

Equity LifeStyle Properties has positioned well to take advantage of demographic trends during the next several years. Approximately 70 percent of its properties cater to Baby Boomers. Ten thousand Boomers will turn 65 each day for the next 12 years, according to the Pew Research Center.

Manufactured home shipments are up 50 percent in five years, and recently achieved an 11-year single month sales peak. This is an industry-wide measure of success mirrored by trends with ELS properties.

“We continue to see a strong home resale market, which is a key indicator of demand for the homes in our communities,” Bunce said.

In addition, the characteristics of the RV side of the business also are positive. ELS numbers show there are about 9 million RVers in the country and about 1.5 million RV sites. Furthermore, industry trends such as the growing popularity of peer-to-peer RV rentals are positively impacting the amount of time RVers spend in those campgrounds.

“Meanwhile, our hybrid RV and MH communities are positioned to attract customers in all segments of the RV-to-MH lifecycle. From the weekend camper to the snowbird to the full timer… and, in many cases, the former RVer who prefers to purchase a manufactured home in their favorite resort,” he said.

With its very first property purchased in 1969, ELS will celebrate its 50th anniversary next year.

“We’re very proud of our history of providing quality communities and RV resorts for our customers,” Bunce said. “We have a lot to celebrate.”

Manufactured Housing Industry Members Recognized at Annual Conference

awards MMHA

Michigan Manufactured Housing Association presents awards to 6 exceptional members

Industry Members Recognized at Annual Conference in Novi

The Michigan Manufactured Housing Association (MMHA) presented its 2018 Member Awards on Oct. 11 at its annual conference at the Suburban Collection Showplace in Novi, Mich. The awards were presented by MMHA Board President Richard Winkelman:

Best Model Home Staging

The Best Model Home Staging award was given to HomeFirst/Brookside. HomeFirst/Brookside’s entry showcased one of its brand-new model homes that is contemporary, trendy and truly comparable to a stick-built home. Danya Mallad accepted the award.

Best Model Home Staging awards
Danya Mallad from HomeFirst/Brookside accepts the Best Model Home Staging award presented by MMHA Board President Richard Winkelman

Best Manufactured Home Community Event or Activity

The award for Best Community Event or Activity went to Highland Greens and M. Shapiro Management.

Highland Greens organized a “back to school” raffle for all elementary-school-aged children within the community. They managed to make every child who entered a winner. Over 50 backpacks were given away, filled with school supplies. The award was presented to Debbie Robbins and Jeannie Barrett.

Best Mobile Home Communtiy Event awards
Debbie Robbins and Jeannie Barrett accept the award for Best Community Event or Activity.

Best Member Sales Event or Activity

Sun Communities of Western Michigan was awarded Best Member Sales Event or Activity. Sun Communities held open house events at six different communities in Western Michigan and promoted them using digital marketing. The result was over 9,000 clicks to their landing page, hundreds of in-person community visits, and multiple home sales. Heather Rector accepted the award.

Best Member Sales Event or Activity
Sun Communities of Western Michigan was awarded Best Member Sales Event or Activity. Heather Rector accepted the award.

Best MMHA Member Website

Best Member Website award went to Preferred Homes. The new website for Preferred Homes is www.preferredmobilehomes.com, and is an easy-to-navigate site filled with beautiful home photos, floor plans, homeowner testimonials and financing information. Rose Graham accepted the award.

Best Member Website
Rose Graham accepted the Best Member Website award, which went to Preferred Homes.

Exceptional Customer Service Award

The winner of the newly added category for Exceptional Customer Service was presented to Capitol Supply & Service. Capitol Supply & Service has generously donated the installation of equipment and materials to families in need living in manufactured housing communities. These special cases were brought to Capitol’s attention by community managers, school districts and news station agencies. The award was presented to Claudia Elliott.

Exceptional Customer Service
The newly added category for Exceptional Customer Service was presented to Claudia Elliot of Capitol Supply & Service.

Best Manufactured Housing Community Manager Award

The only award given to an individual is for Best Community Manager. The 2018 winner was Kitty Cole of Sherwood Forest. Kitty Cole has been community manager of Sherwood Forest in Ionia, Mich., for the past three years. She is a lifetime Ionia resident, as well as former business owner, and an active Chamber of Commerce member. The award was presented directly to Kitty Cole.

 Best Community Manager
The 2018 winner for Best Community Manager was Kitty Cole of Sherwood Forest.

The MMHA Member Awards program is designed to recognize the exceptional leadership, marketing and communications efforts of its members, and to enable members to display the award as a point of pride and accomplishment. For photos and more information about these exceptional manufactured housing industry members, visit www.michhome.org.

Brand Management For Manufactured Home Communities

Brand Management for Manufactured Home Communities
Build a brand that will get customers flowing into your communities and homes.

There Is A Lot That Goes Into Brand Management for Manufactured Home Communities

By Jennifer TysonHappyCo

Brand management an oft overlooked aspect of manufactured home sales

A strong and positive identity increases rental rates and final selling prices. It also decreases rental vacancies and accelerates the speed at which you sell.

But what is your brand?

It’s not your logo, website and other marketing assets. While critical to your brand identity, those are the visual representations of your brand, not the brand itself. Your brand is your promise to your residents. It is every interaction your employees have with current and prospective residents, and is every interaction those residents have with your community.

Your brand is what sets you apart from competitors and alternative housing solutions. Most importantly, your brand is what your customers say it is.

So how do you ensure residents and prospects know your brand and admire it?

Your Brand Promise: Get the Details Right

Brand Management for Manufactured Home CommunitiesStart with your promise to residents. As the manager of a manufactured housing community working on brand, your first duty is to make sure your community makes good on the brand promise.

Just as no amount of marketing can turn a one-bedroom house into a two-bed, two-bath home, presenting your manufactured home community as the high-quality, less expensive alternative among housing options is entirely negated by a first impression of a community that is improperly maintained.

 

A thorough, regular and consistent community inspection program key to creating long-term, positive associations with your brand

With regular inspections, you not only ensure compliance with regulatory and corporate standards, you can catch problems (like a small leak in a rental home) before they become big problems (like gushing pipes into the street).

Clearly, you want to reduce overall risk and keep residents safe and happy in their homes. Even better, with a well-maintained property, current residents become your key brand voice. If they’re satisfied with the upkeep in and around their home, they will tell their friends.

Conversely, they will tell anyone who listens if they’re dissatisfied.

Technology to Support Community Quality and Brand Management

While performing regular inspections for compliance-related factors and for things that contribute to overall brand image — like landscaping and curb appeal in common spaces  — might sound like a lot of work, modern digital inspection platforms actually can make this process easier and more effective. There are several such apps on the market. HappyCo’s property inspection app is available for iOS and Android.

If an inspection app is intuitively designed and easy to use, it can significantly improve the speed and quality of data collection over pen-and-paper inspections, especially if it makes use of mobile device cameras.

To be sure, improving the quality of your inspections is an investment. However, the return on that investment really can pay off. Remember, your brand is influenced by every interaction your employees have with residents, as well as the quality conditions of your manufactured community. In this way, ensuring your residents wake up to a beautiful, friendly community is a mandate for a better brand.

Brand Management for Manufactured Housing Communities
MHE’s Glenn Creek on display at The 2018 Louisville Show

Talk About Customization

From fashion to food to furniture, millennials want everything about their lives and their image to be customized to them. What’s great about manufactured housing is that it offers a capacity for customization that is unparalleled in most other parts of the housing market.

Yet, the benefit of manufactured housing has yet to be fully embedded in the minds of most millennials. Broadcast this message loud and clear, particularly if your manufactured homes are in a region that has competing product. This includes apartments, condos, tiny homes and site-built single-family residences.

Customization will set your community apart in the minds  of many customers, particularly millennials. It shows that you cater to individual needs. It’s this kind of differentiated positioning that forms the essence of branding.

Price Is an Object

Brand Management for Manufactured Home CommunitiesApartments in major markets are pricey in comparison with most manufactured housing communities in the same vicinity. The average apartment for rent in Houston costs more than $1,300 each month. A manufactured home in the same area can be rented for near $1,000, or less. In coastal cities, the difference can be much more dramatic.

We are in a housing market where millennials spend thousands for closet-sized spaces. Manufactured housing, again, is an opportunity to deliver a win-win. Photos and videos are the key to delineating differences between a manufactured housing community and a big-city studio. Show the customer that for near half of what they’re paying for an urban apartment in an old building, they can live in a beautiful new manufactured home.

Catch the Customer’s Attention

In today’s market, the first impression of your brand often is online. So, when it comes to attracting prospective residents, that means putting care into designing your website. Residents need to feel like they’re going to have a comfortable experience before they see a home. And having a clean website with a modern user interface and welcoming language goes a long way toward bringing people in.

Digital marketing has long been the key in an effective brand strategy for home sales and apartment rentals. A 2017 study of homebuyers from the National Association of Realtors reports that 42 percent of people search on the internet as the first step toward purchasing a home. That number surely is even higher for millennials, the so-called internet “natives” who represent the majority of renters today and a rapidly increasing percentage of homebuyers.

Millennials Are The Emerging Homebuyers

With 18-29 year olds representing the biggest segment of the manufactured housing market, at 23 percent, mastering today’s digital tools to communicate your brand to this new generation of homebuyers has become high-stakes business. Create a meaningful experience through targeted advertisements.

Modern property managers have a host of tools to help them create standardized, sleek websites and ads. Beautiful web templates abound to help you showcase your community’s strengths, most of them at extremely affordable costs. Google Adwords makes it easy to narrow down and precisely target the markets and individuals most likely to buy. It serves messages tailored to their home-search patterns. Facebook and other social media sites help you convert current buyers or renters into evangelists for your brand. And review sites provide the opportunity to publicly address any problems and demonstrate you are a caring, responsive community manager or home seller. Of course, MHVillage has myriad advertising opportunities and a sophisticated and focused manufactured housing audience.

Also, the feel of a well-made business card and a solid brochure shouldn’t be discounted. Offering a potential customer something to read and admire before and after a tour is another excellent way to keep your housing solutions top of mind.

Attract new faces to manufactured communities

Strategic brand management can help bring entire new demographics of customers to your communities and to your homes. The key is to make a promise that resonates with the groups you’re trying to target — and then follow through on it.

Unfortunately, branding isn’t a one-time, “set-it-and-forget-it” activity. It requires diligent upkeep. This starts with physically maintaining your property but encompasses all the interactions between residents and the community and its employees. Brand management isn’t easy, but get it right and you’ll have a clear competitive advantage.

Jennifer Tyson is VP of Marketing at HappyCo, a San Francisco-based technology company that builds mobile and cloud solutions to enable real-time property operations.

August Home Shipments Top 11-Year High

August Home Shipments

August Home Shipments First 9,000-Plus Month Since ’07

In August 2018, new manufactured home shipments increased 7.9 percent to 9,091 homes. That is compared with the 8,425 homes shipped in August 2017.

Total August home shipments improved by 2,340 homes when compared to the prior month of July 2018.

Compared with August 2017, the trend is positive with shipments of single-section homes up by 6 percent and multi-section homes up 9.5 percent. Total floors shipped in August 2018 increased 8.5 percent to 14,174 compared to August 2017.

No FEMA Units Included in August Total

Of the 9,091 homes shipped in August, there were no homes designated as FEMA units.

The seasonally adjusted annual rate (SAAR) of shipments was 98,104 in August 2018, up 5.8 percent from the adjusted rate of 92,694 in July 2018. The SAAR corrects for normal seasonal variations and projects annual shipments based on the current monthly total.

In August, 133 plants representing 37 corporations reported production data to the Manufactured Housing Institute. The reporting numbers were consistent with those from July 2018.

This report was compiled in collaboration with The Manufactured Housing Institute, the industry’s national trade organization.

Manufactured Homes Retain Value Much Like Site-Built Homes, Report Indicates

Manufactured Homes Retain Value All Transactions

In its Quarterly Price Index Report on Home Values, FHFA Explores How Manufactured Homes Retain Value

In an experimental price index for manufactured homes, the Federal Housing Finance Agency shows manufactured homes retain value in a nature similar to other housing.

“With this HPI report, FHFA is making information about these indexes available for the first time,” the report states. “The indexes are largely experimental at this stage. The manufactured homes data used in forming these series include information for homes titled as real estate and not chattel.”

In Cooperation with Freddie Mac and Fannie Mae under ‘Duty to Serve’

FHFA used special loan data from Freddie Mac and Fannie Mae to produce a pair of new indices. The first is a purchase-only index, which accounts for purchase values. The second an all-transactions index that takes into account manufactured home appraisal values.

The approach for the new manufactured home value indices uses the same methodology employed by FHFA in creating its long-running quarterly house price index. However, the new indices to shed light on how manufactured homes retain value pools national data on the homes. The 40-year HPI uses state-by-state data.

FHFA reported that the difference derives from limited access to data sets in regard to the purchase of manufactured homes.

The base year for both indices is 1995, with an arbitrary weighted value of 100 assigned at that point.

FHFA Purchase Only for Manufactured Home Value Retention

Manufactured Homes Retain Value

The home values trend in a very similar fashion. We see a bit more annual volatility among the early data set on manufactured homes. Notice how the nearly identical peaks in the third quarter of ’07 result in similar volatility in the site-built data? Clearly, the first quarter of 2012 shows a deeper trough for the manufactured home data.

FHFA All Transaction for Manufactured Home Value Retention

Manufactured Homes Retain Value All Transactions

So, on the all-transactions set that includes home appraisals, the shape stays largely the same with a bit less volatility between 1995 and the height at 2007, then both products tend to rattle a bit more on the down trend.

“In general, the figures suggest that manufactured homes have seen price trends broadly similar to those of other homes. According to the purchase-only series, since 1995, prices have risen by roughly 120 percent for manufactured homes vs. 140 percent for other homes,” the report states.

“Although the manufactured homes index had a lower trough, it has been steadily converging on the traditional site-built series, as evidenced by its larger gains over the past four years,” it said.

Data Sets Relative to MH Index Weighted for Metro Representations

FHFA put together a third snapshot comparison of the two home types. Manufactured homes tend to have less presence in metro areas. Consequently, the agency weighed the data to eliminate geographic differences.

Manufactured Housing Retains Value

“To provide more of an apples-to-apples comparison of price trends, a new index for manufactured homes is calculated with a dataset that up-weights transactions in metropolitan areas,” the report states. “The new sample reflects roughly the same proportion of transactions in metropolitan areas relative to FHFA’s traditional (purchase-only) sample.”

Notice the gap between the non-manufactured and manufactured property indices that grows slightly when comparing the first and last figures.

In conclusion, similar indices may be offered in coming months and years. However, they’re likely to be produced less frequently than the standard HPI, the report states.


Please feel free to post comments in regard to what you read and see here. Is there any feedback for the FHFA? Let us know your thoughts and we can pass them on for you.

 

SECO 2018: Community Owners Share Lessons Learned

seco lessons learned veteran community owners

New Community Owners Share Good, Bad and the Ugly

SECO18, the symposium for Southeast Community Owners, started its Wednesday afternoon educational session with a presentation titled “Lessons Learned by New Community Owners”.

About 400 manufactured housing professionals registered for SECO attendance, a record in the symposium’s nine-year history.

The goal was for new community owners to share the good, the bad and the ugly of their experiences, and to share them with people who are considering becoming community owners themselves.

Kim and Rusty Reeve

Kim and Rusty Reeve of Dallas, Texas, bought a community in Glencoe, Ala., about a year and a half ago. The purchase had some positives, including a golf course, about 13 wooded acres, a gentle slope (which turned out to be a curse and a blessing), the ability to expand, low taxes and a great school system.

However, after the purchase they found years of deferred maintenance, failed sewer lines, trees that needed to be trimmed, bad roads, utilities that needed to be repaired and some major excavation that needed to be done. They also inherited a manager who didn’t want to change, and who left the park without a word while they were on vacation. Finding skilled labor was another problem.

“Murphy was sort of behind every corner for us,” Rusty said, referencing Murphy’s Law: If something can go wrong, it will.

To get the cash flow going, they decided to purchase four older units and rehab them, as well as improve the park’s appearance. They also developed some great relationships with community residents, who hadn’t seen improvements in decades.

What did they do right? The Murphys…

  • Acted quickly when the park hit the market
  • Established excellent relationships with city officials, local utilities and building inspectors
  • Sought mentoring from successful community owners
  • And changed the name of the park to Briarmeade Estates

And what they wish they would have known? Managing a property when you live out of state is difficult. Rehabbing homes and deferred maintenance are expensive. Old employees might be resistant to change. Be prepared for unexpected surprises.

Amy McMahan

Amy McMahan said her and her husband’s community, Stone Oaks in Longview, Texas, fell into their lap about 11 months ago. She said make sure you’re on the job site when contractors are making repairs.

“You may think they know exactly what you want, but they don’t,” she told the audience of manufactured housing professionals at SECO.

She had some other advice: Use non-local banks. Local banks don’t want to deal with “trailer parks”. Go door-to-door and get to know every tenant. They want to feel like the vital part of the community that they are. The McMahans put on a party for tenants, with free food and games. The tenants were flabbergasted by the attention, she said.

Tim Manson

Tim Manson started AM Partners with a partner in April. Based in South Carolina, they bought their first park, an 86-lot community, in Virginia. Due diligence, he said, cannot be too detailed. For example, he thought he was buying a 98-lot park, but three weeks before closing he discovered it was an 86-lot park.

Manson also put emphasis on the importance of getting to know your tenants. He wanted to build a playground, but discovered about half the community didn’t want one.

“Don’t assume you know what’s going to improve your tenants’ life until you have conversations with them,” Manson said.

Another surprise: his biggest tenant issues were with renters, not homeowners.

“The demand for this product is endless, but a large percentage of that demand is not the kind of tenant you want,” Manson said.

“It’s important to not always be available,” he said. “You have to have boundaries with your tenants. Learn what conversations you should have, and at what time those conversations are appropriate.”

And finally: empower your property managers. Pay them right, and make sure they’re the right person to manage that property.

Community Owners Have an Attractive Option to Purchase New Homes

cavco reorganizes leadership team home interior
The kitchen in a new Fairmont Home by Cavco. Photograph courtesy of Fairmont Homes.

Cavco’s CountryPlace Mortgage Gains Traction with REvive program

CountryPlace Mortgage now offers community owners a fresh way to finance new homes for their communities.

“REvive is custom-tailored to the community owner,” CountryPlace Consumer Lending Division President Jack Brandom said. “It’s designed specifically for strategically minded community owners to help them put new homes in their communities, whether they’re filling vacant sites, expanding or upgrading some of the community-owned homes.”

Brandom says the new financing platform is all about offering more inviting terms for communities, particularly small to midsize owners and operators.

REvive offers a unique term of up to 11 years. Also, the initial year’s payments are based on interest alone.

“We have teamed with Cavco’s manufacturing group to provide the communities with lines of credit and the first year payments are interest only,” Brandom said. “We also advance up to 80 percent of the gross invoice, including freight, and factory-installed air conditioning.”

REvive
Photo courtesy of Lexington Homes

Other Terms Associated with REvive:

REvive
Kitchen with free-standing island in The Duke, a new home by Fleetwood. Photograph courtesy of Fleetwood Homes.

  • Annual five-home purchase minimum
  • All brands from Cavco, Fleetwood, Palm Harbor, Fairmont, Friendship, Chariot Eagle and Lexington Homes
  • Principal and interest payments start after first year
  • Attractive interest rates

As a result, REvive allows a community to get new homes for an attractive payment. This enables owners to generate a positive cash flow when they lease or rent the home. The home can remain on the REvive program if the community rents the home, or sets up a lease-to-own agreement.

Benefits Smaller Owners and Residents Who Want a New Model Home

REvive
The interior living space of a new Cavco home. Photo courtesy of Cavco Industries.

The new homes from Cavco and all of its brands can fill empty sites, improve the street appeal of the community, replace aging homes or be part of a community expansion program.

“It really is a program regularly requested by community operators who have less access to capital than some of the bigger portfolio owners,” Brandom said. “If you’re an owner who has a limited number of sites, it can be hard to find long-term capital to buy homes.”

REvive has seen an increase in demand during the last six months as word has spread.

Furthermore, the program is receiving growing attention for community expansion. Brandom also said a rising number of multi-section home purchases complement the purchase of single-section units.

CountryPlace has a license to do business in 37 states, Brandom said. The contact person for the REvive program is Steve Mehrer, director of community lending for CountryPlace. Call Mehrer at (972) 763-5102.

SECO 2018 Underway in Atlanta

SECO 2018

SECO 2018 Kicks Off with Nearly 400 Attendees

SECO 18 has grown from a small group of community owners meeting in a hotel room to a regional industry event that now attracts attendees from more than a third of the country.

“We have outgrown every venue we’ve been in for the last nine years,” said Spencer Roane, owner of Pentagon Properties and SECO co-founder.

SECO stands for Southeast Community Owners. The annual symposium provides a forum for collaboration among small to midsize community owners. The organization is a 501(c)3 nonprofit.

Who’s In Attendance at SECO 2018

SECO 2018
SECO 2018 attendees at the Welcome Reception in Atlanta.

  • 200 community owners
  • 150 sponsors, exhibitors and vendors
  • Manufactured professionals from 20 states

“As you can imagine, there are a lot of people here from Georgia, but there also is a large presence from Florida and other surrounding states,” Roane said.

During the welcome session on Wednesday morning, organizers asked who had been at the event and who was a fist-time attendee. More than half of the room at the Atlanta Airport Marriott raised their hand as first-time attendees.

“This is such a great gathering,” community owner and SECO 18 organizer Tom Lackey said. “It’s all about connecting, meeting people and learning. I love seeing all the new people here. It’s very encouraging and we’re looking forward to two great days of programming.”

SECO 2018 Continues Through Thursday

Tuesday programming for pre-SECO events included a number of talks and featured a live home installation demo at an area manufactured home community, led by Cole Phillips of Phillips Investment Properties.

SECO 2018 continues through Thursday in Atlanta.

EVENTS

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