In an interview with reit.com, UMH Properties (NYSE:UMH) president and CEO Sam Landy says occupancy rates have risen at the company’s 68 manufactured home communities comprised of 12,800 homesites because of the strength of the rental market. UMH rented 200 units last year and intends to fill another 200 this year. Noting his competition, Landy says, “If they’re paying $200,000 for 980 square feet and we’re paying $80,000 for 980 square feet, we could rent our homes out at $750 a month, where they have to be over $1,000 per month. If we look at the markets we’re in and we rent our homes for at least $50 per month less than apartments, we generally generate a waiting list, and that’s what’s increasing occupancy.” He says the tighter credit and government regulations also spur demand for rentals. UMH has acquired several properties this year, as MHProNews posted here April 3, 2013, and intends to purchase more, although Landy says as prices rise it’s tougher to find good deals. A recent exclusive interview by MHProNews with UMH’s Sam Landy is linked here.
(Photo credit: Carisa Chappell/reit.com–Sam Landy)