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"The Whole Star
Story"
Reprinted from the November 2004
issue of the Journal of Manufacactured Housing
The practice of
“grading” mobile home parks or manufactured housing land lease
communities with a "star" rating (from one to five stars) exists for
no other type of commercial real estate that I know of. What makes this interesting
is that virtually almost no one who uses the rating knows what it
means or where it comes from.
I get
a calls every now and then from park owners wanting to know who to
call to have their parks rated and how it works. And they aren't the
only ones; ask a broker, lender, or even large corporate operators
what the difference is between a three-star and a five-star park,
and you will likely get a muddled response referring to amenities,
paved streets, or swimming pools, but no hard data about what the
stars mean, how they are assigned, or by whom.
Yet
it sounds so real, so authoritative, that one believes there must be
some person or entity somewhere that issues these "stars", or that
there is a “chart” somewhere where you can grade a community.
Historical
The
history behind mobile home park star ratings The history behind this
practice is interesting, and unknown to most in the business.
The
reference to star ratings for mobile home communities is a holdover
from a directory of mobile home parks published in the fifties,
sixties, and seventies by Woodall Publishing of
Chicago,
Illinois.
The
directory was an outgrowth of the original directory started in 1935
called "Trailer Travel Magazine," compiled by Karl Hale Dixon. The
original directory rated campgrounds and travel trailer parks--the
forerunners of the modern mobile home park, or as we now know it:
the manufactured housing land lease community.
As
mobile homes grew in size and popularity, potential residents needed
a separate directory for the parks that could accommodate them. It
became quite an undertaking. The 1970 edition required 21 teams of
Woodall inspectors to visit every park in the country.
Of
24,000 parks in existence then, that edition found 13,000 parks
deemed of high enough quality to be included in its 950 pages. The
ratings were for consumers--the potential residents of the parks.
The
rating guide was never intended as a grade of investment quality. As
seen in the guidelines below, few of the criteria that would be
important for grading investment quality are even mentioned.
But
perhaps the strangest of the facts surrounding the continued use of
the star system is that Woodall ceased publication of the Mobile
Home Park Directory in the early seventies, and with it, their
inspections that created the ratings. They stopped publication
because mobile homes became "immobile," and the need for a rating
system for transient homeowners declined. The actual publication run
of the Mobile Home Park Directory was 23 years.
Wodalls
Today
Woodall continues to publish a directory of
ratings for RV/Campground facilities, as well as a number of
sub-directories and regional guides, but m/h parks are no longer
listed. More information
is available on their web site at
http://www.woodalls.com.
Though the directory hasn't been published for over 25 years,
the star ratings survive as the authoritative rating system for
mobile home parks.
Some
institutional owners and lenders, and at least one author, have
developed their own criteria for grading parks, but there is little
similarity to the original rating system.
The
truth is with the exception of my proposed "new 5 star"
system, there is no nationally recognized standard to
grade mobile home parks.
With
that background in mind, now you know that when someone uses the
star rating to describe a park, it is not based on any system or
fact. It is merely the opinion of the person using the term. Don't
be fooled into thinking there is a higher authority out there
somewhere, handing out stars.
Woodall stressed that the stars do NOT denote that one mobile
home park is better than the next. It was meant to be a guide for
various levels of service, not to rank one park above another,
similar to the "diamond"
ratings AAA gives to hotels.
Here
are the guidelines used for the Woodall star rating system. The
descriptions are quoted directly from the 1970 guide.
Woodall one-star
park
The
most important consideration for a one-star park is overall
appearance. If it is not a decent place to live, it would not have
been listed in Woodall's directory.
The
following are general requirements:
1A. Fair overall appearance.
1B. Patios on most lots. May be concrete, asphalt, wood, or
some suitable material
1C. Grass, rocks, or shell to cover ground.
1D. Streets fair to good. May be dirt, asphalt, or gravel in
reasonable condition.
1E. Restrooms clean, if any.
1F. Adequate laundry or Laundromat nearby.
1G. If fences allowed, must be neat.
1H. Mail service.
1I. Homes may be old models, but show evidence of some
care.
1J. Manager available some hours of each day.
Woodall two-star
park
2A. Landscaping--some lawns and shrubs.
2B. Streets in good condition. Must be dust free of crushed
rock, gravel, or shell minimum.
2C. Neat storage.
2D. Well equipped laundry or laundromat nearby.
2E. 220-volt electrical connections available.
2F. If children accepted, park should have play
area.
2G.
Park free of clutter,
such as old cars and other abandoned equipment.
2H. Well-maintained and managed.
Woodall three-star
park
What
a three-star park does, it does well, but not as uniformly as higher
rated parks. Many three-star parks were once rated higher, but
original construction does not allow for “today's” (circa 1970)
modern? 10-foot, 12-foot, and double-wides, or the 56 foot and
60-foot lengths.
If
children are allowed, there should be adequate play area. However
the disarray caused by children may at times be the determining
factor that keeps a three-star park at that level when it otherwise
could be rated higher.
In
addition to the requirements for one-star and two-star parks, a
three-star park must have the following:
3A. Attractive entrance.
3B. All mobile homes must be in good condition.
3C. Awnings and cabana rooms on some homes in southern
area.
3D. Some spaces for large mobile homes.
3E. Paved or hard surfaced streets.
Woodall four-star
park
(There are two categories. See item 4K.) Four-star parks are
“luxury parks”. In addition to the requirement for one-star,
two-star, and three-star parks; a four-star park must have the
following:
4A. Good landscaping.
4B. Most homes skirted with metal skirts, concrete block,
ornamental wood, or stone.
4C. Paved streets, edged, or curbed.
4D. Uncrowded lots.
4E. Underground utilities if permitted by local conditions
and authorities.
4F. Most tanks, if present, concealed.
4G. Any hedges or fences must be attractive and
uniform.
4H. Awnings, cabanas, or porches on most homes in southern
areas. (Except
double-wide units.)
4I. Most lots to accommodate large homes.
4J. Where row parking of homes exists, all must be lined up
uniformly.
4K. Community hall and/or swimming pool and/or recreation
program. (If a park is four-star in all but this requirement, the
fourth star will be printed as an open star, indicating a four star
park without recreation.)
4L. Excellent management.
Woodall five-star
park
Five-star parks are the finest. They should be nearly
impossible to improve. In addition to the requirements for one-star,
two-star, three-star and four-star parks, a five-star park must have
the following:
5A. Well-planned and laid out. Spacious
appearance.
5B. Good location in regard to accessibility and desirable
neighborhood. In some locations the park should be enclosed by high
hedges or ornamental fence.
5C. Wide paved streets in perfect condition. Curbs or lawns
edged to street, sidewalks, street lights, street signs.
5D. Homes set back from the street.
5E. Exceptionally attractive entrance and park
sign.
5F. Patios at least 8 x 30 ft. (Except double-wide
units.)
5G. Paved off-street parking such as carports or planned
parking.
5H. All homes skirted.
5I. All hitches concealed. Any existing tanks
concealed.
5J. Recreation, some or all of the following: swimming pool
(except areas with long, cold winters), shuffleboards, horseshoe
pitching, golf course, hobby shop, hobby classes, games, potlucks,
dances, or natural recreation facilities.
5K. Beautifully equipped recreation hall with kitchen. Room
for community gatherings. Tiled restrooms, etc.
5L. Uniform storage shed or central storage
facilities.
5M. All late model homes in excellent condition.
5N. At least 60% occupancy in order to judge quality of
residents which indicates park's ability to maintain a five-star
rating between inspections.
5O. All empty lots grassed, graveled, or otherwise well
maintained.
5P. If pets or children allowed, there must be a place for
them to run and play without cluttering the streets and yards. Most
five-star parks are for adults only.
5Q. Superior management interested in
comfort of residents and maintenance of park.
Today's standards
The
guidelines certainly show their age. I find it interesting that only
in a five-star park is tenant quality and occupancy a consideration
for the ongoing quality of the park.
Paved
streets aren't seen until the three-star level, and even then are
not mandatory. A three-star park may still have small lots, minimal
landscaping, and no criteria for location.
In my
experience, an average park will often be described as a "three-star
park." As I look over the guidelines, I think a three-star rating by
the actual Woodall criteria would be a below average property by
today's standards.
As
they are being used, loosely today, the star rating system has come
to mean:
1 Star: older,
badly maintained, poor quality park, no amenities
2 Stars: older, minimally maintained, barely acceptable
quality park, no amenities
3 Stars: average quality park, minimal amenities
4 Stars: better than average quality park, modest
amenities
5 Stars: the highest quality park for the area, good quality
amenities
Now
you have the whole “star” story. For the proposed "new 5 star
system, click on the tab at the top left.
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