THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS
THE TECHNOLOGY EDITION A HISTORY OF INNOVATION IN COLORADO SPRINGS RESPONDING TO NEGATIVE ONLINE REVIEWS LET YOUR SOFTWARE SET YOU FREE
JULY / AUGUST 2021 | MHINSIDER.COM
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CONTENTS
RESPONDING TO NEGATIVE ONLINE REVIEWS
PAGE 66
There’s no denying that bad reviews happen, even to the best of us. Whether good or bad, it’s how you respond to online reviews that really makes the difference. Who should respond? What should you say? And how can you avoid making things worse? HAPPENINGS 6 Industry Happenings EVENTS 12 Manufactured Housing Industry Events TECH TRENDS 14 Sugar: A Community Engagement App for Retention and Referrals PROP TECH 19 Water Utilities and Billing Leads to Expanded Offerings for National Provider 22 Mass Elemental Brings Robust Offerings for Small, Midsize Operators 25 PropTech Behemoth Grows in Manufactured Housing Industry, Experience INSURANCE 31 Under Attack: Reduce Risk of Damage From Hacks, Data Loss PROFESSIONAL PROFILE 34 Let Your Software Set You Free
2 | JULY / AUGUST 2021 EDITION
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Purchasing Platform technology offers several features that drive significant portfolio-wide efficiencies, control, and transparency into what is being purchased every day.
INDUSTRY DEVELOPMENT 38 A History of Innovation in Colorado Springs 4 4 3 Ways Rising Inflation Will Impact Mobile Home Park Owners and What To Do About It 49 Home Resale Operations Boost Long-Term Community Growth, Value 52 The Promise of a New Model with a Rich History MARKETS 56 Investing in Manufactured Housing REITs MARKETING 62 How LinkedIn Can Build Professional Authority, Corporate Brand ADVOCACY 72 Technology is Key Component at the Manufactured Housing Institute THE ALLEN LEGACY 77 What They Do For Fun...
MHINSIDER.COM | 3
FROM THE VOLUME 4 • EDITION 4 JULY / AUGUST 2021 MHInsider.com
Leaderships is the Launching Pad for Great Breakthroughs
I
Publisher
Patrick Revere patrick@mhvillage.com
Senior Graphic Designer Merit Kathan merit@mhvillage.com
Innovation is at the heart of what we do. It is the spark, the novel intention. It is the launching pad for those breakthroughs that become the best new technologies, the most game changing industry developments. Those moments come to us in many ways. There are times to plan and examine. Other times there is no practice at all. You step to the plate and swing. No one approach is more valuable than the other. It is that balance in innovative approaches that requires vision and leadership. Leadership in innovation endures even during the most difficult times. The July/August 2021 edition of MHInsider magazine offers myriad stories from the manufactured housing industry that epitomize leadership in innovation. We have a detailed account from a central source on property management software in its earliest days, a unique history of housing in Colorado Springs, a story on a nonprofit community model in California, an exposé on the smart home, and advice on how to make LinkedIn work for you. The Technology and Industry Development edition of MHInsider tells stories from many places and times. But the central theme is the ability to maintain clear sight on solutions to customer needs. The scarcity of affordable housing nationwide, coupled with the opportunity to optimize, advocate and ramp up production, is both the challenge and the welcome goal for each of us in the industry.
Patrick Revere is associate vice president
Contributing Editor George Allen gfa7156@aol.com
Editor
Sean Vichinsky sean@mhvillage.com
Contributors
Beth Monicatti Blank James Cook Kevan Enger Kurt Kelley Darren Krolewski Alex Pettee Ellen Savage Bruce Thompson
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Disclaimer
Although we make every effort to ensure that the information in this issue was correct before publication, MHVillage, Inc. and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. Opinions expressed are those of the author or persons quoted and not necessarily those of MHInsider or the publisher MHVillage, Inc.
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the american dream Joshua Mermell Senior VP of Acquisitions Email jmermell@rhp.com Cell 248.508.7637 Office/Direct 248.538.3312 31200 Northwestern Hwy. Farmington Hills, MI 48334 rhp.com
INDUSTRY happenings Transactions Maryland-Based Company Makes $743 Million Acquisition Horizon Land Co. has purchased a portfolio of RV and manufactured home communities for $743.3 million. The deal includes 93 communities and more than 11,000 homesites. The deal also includes a self-storage facility. The properties are located in 29 markets across 13 states.
community sits on Ringgold Road is about two miles from retail and dining on Highway 27. The community currently has 32 homes. NorthMarq brokered the deal, and reported that southern states have accounted for 41% of all new affordable housing supply in the last year. Kentucky is among the highest in annual growth for U.S. manufactured housing shipments, with a 24% year-overyear increase, up 3,500 units.
Clayton to Open New Facility in Kansas
North Carolina Community Sells for $12.6 Million
The Wichita Falls Economic Development Corporation Board announced a deal that will bring Clayton Homes to a new factory in the city. The Tennessee-based builder will set up a modular home facility at the former ATCO building on Burkburnett Road. The deal is worth about $1.7 million and has been in negotiation for more than four years. Clayton anticipates an investment of about $15 million and to hire about 180 workers in the first three years of operation.
Taylor Property Group has sold a 298-site manufactured home community, Taylors Creek Mobile Home Park, in Fayetteville, N.C., to an “entity connected to Vineyards Impact Funds” for $12.6 million, brokered by Capstone. The property last sold in 2007 for $4 million. The new owner assumes the outstanding balance of a $5.9 million loan the seller took out in 2012. The property is 108 acres in a Qualified Opportunity Zone, two miles from Fayetteville Regional Airport and less than 3 miles from Interstate 95.
Kentucky Community Changes Hands Sunset Mobile Home Park in Somerset, Ky, a 48-site manufactured home community was sold for $828,000. The property was last sold in 2018 for $700,000. The
6 | JULY / AUGUST 2021 EDITION
West Edge Park Has New Owners West Edge Park manufactured home community in Auburn, Ind., has been sold to Crown Communities
LLC of California. The 660-units park had been owned since the mid-’60s by the late Burt and Elsie Dickman. The new owners bought the property April 1 from the Dickman family. “The Dickmans spent 50-odd years making that a nice place to live,” Crown Communities Managing Partner Alexander Cabot said. ”We want to continue that legacy.”
UMH Properties Buys in Ohio Freehold, N.J.-based UMH Properties, a publicly traded owner and operator of manufactured home communities, has purchased a property in Sandusky, Ohio, for about $10.3 million. Bayshore Estates is a 56-acre property with 206 homesites. It is 86% occupied. “Ohio has been one of our best performing states and we are pleased to add this community to our portfolio. The community is generally in good condition, but we plan to improve the operating results by investing in the infrastructure and filling the remaining vacant sites with homes for rent and sale,” UMH Properties President and CEO Samuel A. Landy said.
Florida Retirement Community Sells for $61 million Capital Square 1031 purchased Foxwood Village, a 55+ lifestyle manufactured housing community in Lakeland, Fla. The company’s portfolio already held six age-restricted Florida coastal communities. Sale records show 69-acre, 350-homesite property was acquired for $61.1 million. Foxwood Village has direct connection to Tampa and Orlando by Interstate 4.
RVR Homes Purchases Morgantown, W.V., Community St. Clair’s, a manufactured home community in Morgantown, W.V., previously called St. Clair’s Village, was purchased from a family ownership group by RVR Homes for $4 million. The community has 123 occupied homesites, which accounts for more than 80% of the lots. Ravi Desai, of RVR, said 20 new homes are on order for the community, and each home in the community has been provided a new gravel driveway. »
MHINSIDER.COM | 7
Happenings
Investment Firm Buys Half of Canadian Community
the community has 209 homesites situated on 34 acres approximately 48 miles north of Washington, D.C.
Firm Capital Property Trust acquired 50% interest in a 181-site manufactured home community in Calgary, Alberta. Mountainvew Mobile Home Park is valued at $16.9 million, and the investment totaled $8.5 million. The property is 24 acres comprised of two adjacent parcels, each fully occupied. Mountainvew was developed in 1973 and has remained under initial ownership and management. It is conveniently located to schools, public transportation, shopping, downtown restaurants, and entertainment.
Maryland Manufactured Housing Community Purchased KeyBank Real Estate Capital has secured an $18 million Fannie Mae loan for a manufactured housing community in Maryland, Briarwood Estates in Dundalk. The buyer is a partnership between a Newport Beach, Calif.-based real estate investment and asset management company and Orlando-based Elevation Capital Group. Built in 1949, renovated in the 1960s, and expanded in the 1980s,
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RHP Properties Buys Pennsylvania Community RHP Properties, the nation’s largest private owner and operator of manufactured home communities, acquired 133-site Ridgewood Manor in Manheim, Pa., bringing the company’s community presence in the state to 11, and nationwide to 299 communities and 71,307 homesites.
Irvine, Calif.-based Company Purchases Illinois Communities Shopoff Realty Investments has acquired three Illinois manufactured housing communities with a total of 611 homesites. The properties are Oak Creek Estates in Bourbonnais, Lincoln Terrace in Lincoln, and Belle Aire in Marseilles. “The large number of lots will allow immediate economies of scale for the operations of the communities,” Shopoff Realty Investments President and CEO William Shopoff said. “This is Shopoff’s second purchase of a mobile home community in recent years, and we have found this type of asset to offer tremendous untapped value as people are looking for alternatives to apartments and other more traditional multifamily housing.”
Patrick Industries Acquires Elkhart Supplier Patrick Industries has acquired Elkhart, Ind.-based Alpha Systems, a manufacturer and distributor of component products and accessories the recreational vehicle industry, as well as manufactured housing, commercial building, and marine. Alpha’s major product categories include adhesives and sealants, roofing membranes for RVs, roto/blow and injection molded products, butyl tape, shutters, and various other parts and accessories.
Cook Properties Continues Expansion in New York A growing ownership group in New York, Cook Properties, has purchased an additional pair of manufactured home communities in the Lockport area, Suburban Acres and Rapid Estates. The two communities add 332 homesites to the company’s portfolio of 33 communities.
Michigan Community Sells for $4.2 Million Bel Air Estates in Norton Shores, Mich., was sold for $4.2 million in a deal brokered by Glenn Esterson and
Personnel Cavco Executive Retires, Successor Named Cavco Industries announced that after a career of more than 50 years in the manufactured home industry, Charley Lott is retiring from Cavco’s Fleetwood Homes. Lott began his career with Fleetwood Enterprises at the plant in Douglas, Ga., in 1970. After 10 years with Flintstone Industries, including as president, Lott returned to Fleetwood and headed the company’s 40-plus plant manufacturing operation. In 2008, he joined Cavco as part of the Fleetwood acquisition and played a critical role in its growth. Upon the retirement, Brian Cira will assume the role of president of manufactured housing for the company. He started his 38-year industry career with Redman Homes in 1983. After a brief time with Skyline Homes, Brian joined Fairmont Homes in sales and worked his way up to become president.
Tammac Holdings Names New COO Manufactured housing lender Tammac Holdings Corporation has named Troy Cavallaro Chief Operating Officer to continue to drive company growth. “Troy brings a wealth of experience in both the direct and indirect consumer lending industries along with a track record of driving operational improvements and sales growth,” Tammac President Jeff Poth said. “His expertise and experience will accelerate Tammac’s growth and further expand our footprint in the manufactured housing industry to benefit dealers and consumers alike.”
Yale Advisors Hire Regional Director, Promotes Manager Ken Schefler is the new regional director of the Upper Midwest for Yale Advisors, a fast-growing sales and finance brokerage based in Florida. Schefler is a seasoned real estate professional in manufactured housing and RV, having been responsible for markets in seven states across the Southeast and Pacific Northwest. He is excited to focus on the Upper Midwest where he plans to drive value for
sellers and show buyers that there are abundant opportunities outside the “hot” coastal and resort markets. Additionally, Mitch Gonzalez has been promoted from transaction manager to the company’s director of land sales and development. Gonzalez brings experience in construction and construction management.
Skyline Champion Hires New Tech VP Skyline Champion Corporation has hired Roland Menassa as its first vice president of manufacturing technology. It is a newly created position that will lead innovation and deployment of robotics and advanced automation, advanced process controls, and innovation in material handling systems. “We’re excited to welcome Roland to Skyline Champion, and we look forward to the expertise that he brings to our organization as we continue to transform the way homes are bought and built,” Skyline Champion President and CEO Mark Yost said. “Automating the future will help us improve employee safety and engagement, further enhance our sustainability and cost advantages, increase flexibility, and improve quality. Roland’s broad knowledge and implementation achievements at Amazon, General Electric, and General Motors are what we need to help us build a better future. With him in this role, we can drive the legacy homebuilding industry forward making it better for our people, channel partners, and the homeowner.”
Awards & Mentions YES Communities Partners with Team Rubicon Team Rubicon, a non-government veteran disaster relief organization founded by a pair of U.S. Marines, will receive a $5,000 donation from YES Communities. The donation comes in response to extended drought conditions in Colorado, and Team Rubicon’s volunteer disaster relief crews that work with Colorado firefighters on wildfire mitigation projects, including clearing dead trees and brush from forests that pose a significant fire threat. “We stand in awe of the work of Team Rubicon and appreciate their dedication here in our home state of Colorado. Through continued sacrifice and service, they have donated their valuable time and resources to protect Colorado and beyond,” Steven Schaub, CEO of YES Communities, said. »
MHINSIDER.COM | 9
Happenings
Vasili Arvanitidis of Marcus & Millichap. The 116-site manufactured home community is a mile from Muskegon Beach. Dylan Hellberg, Glenn Esterson, and Parker Kelly of Marcus & Millichap secured and represented the buyer, a limited liability company.
Happenings
In Memoriam Industry Mourns Pennsylvania Veteran Walter L. “Jake” Gehers Sr., 80, of Middleburg, Pa., passed away in April at Geisinger Medical Center. Mr. Gehers was born Dec. 16, 1940, in Mifflinburg, Pa., son of the late Albert and Alverta (Rosenthal) Gehers. He was a 1958 graduate of Selinsgrove High School and served in the Army from 1959 to 1962. On June 15, 1973, he married the former Lois Drumheller and worked nearly his entire career in the manufactured housing industry, for Hauser Homes and Poloron, Penn Lyon Homes, and retired as a service manager from Excel Homes. Mr. Gehers was a member of the Kreamer Sportsman’s Club, and as an avid hunter and fisherman, and he enjoyed fishing in Canada and hunting in Colorado. He is survived by his wife and two sons, Walter Gehers Jr. and his companion Anne, and Danny Gehers and his companion Crissy; one daughter and son-in-law, Micki and Jason Wagner; three grandsons, two sisters and a brother-in-law. Mr. Gehers was preceded in death by six brothers, Eugene, Ronald, Karl “Fritz”, Albert “Toby”, David, and Tommy Gehers. A viewing was held April 19 at the Hummel Funeral Home and a private funeral was held with Pastor Vickie Brown officiating. Burial is in the Globe Mills Cemetery, Middleburg, Pa.
Builder, Transporter Passes Away Melvin P. Conrad, 87, of Middleburg, Pa., died April 17 at Evangelical Community Hospital, Lewisburg. He was born Dec. 19, 1933, in Center Township, Pa., son of the late Charles and Margaret (Baney) Conrad. On Sept. 23, 1976, he married the former Nancy L. Houtz and had been employed at Houser Homes and Poloron, Thor Industries, PBS, Apex Homes, and MSI. He also had worked at Middleburg Yarn and drove cross country trucking. Mr. Conrad is survived by his wife and 10 children, Ken Conrad and Kay, Ron Conrad and Cindy, Galen Conrad and Nancy, Terry Conrad and Nancy, Bruce Conrad, Marilyn Tayvinsky, Mike Houtz and Monique, Tammy Houtz and Keith, Candy Swope, and Kevin Conrad and Katrina, as well as 20 grandchildren, 16 great-grandchildren, numerous great-great-grandchildren; and one brother, Raymond Kratzer. He was preceded in death by three grandchildren, Mike Houtz, Paula Conrad, and Michael Wilt; and two brothers, Stanley and Marlin Kratzer. A viewing was held April 23 at the Hummel Funeral Home followed by the funeral and burial at Lincoln Chapel Church Cemetery. 10 | JULY / AUGUST 2021 EDITION
MHE Electrician Laid to Rest James R. Cliffton, 80, of Bryan, Ohio, passed away April 20 at Park View Nursing Center in Edgerton, Ohio. Mr. Clifton was an electrician at Manufactured Housing Enterprises. He belonged to the Cruisin’ Knights Car Club, enjoyed working on his cars and taking them to the shows in Bryan and Gas City. He fished and rode motorcycles. Mr. Cliffton was born on June 21, 1940, in Melbern, Ohio, son of John Lester and Ilo Marie (Price) Cliffton. He is survived by his special friend, Dolene Keeterle, of Bryan, daughter Susan Dooley, of Port Clinton, Ohio, sons, Wesley Wade Cliffton, of Paulding, Ohio, and Terry Cliffton, five grandchildren, five great-grandchildren, sister Nancy (Jerry) Mocherman, of Bryan; and several nieces and nephews. He was preceded in death by his parents, a daughter, Gayette Sharp, son, James Cliffton; four brothers, and a great-grandchild.
Honored Industry Professional Remembered Bud Merta, a 92-year-old who spent four decades in the manufactured housing industry, was laid to rest after passing away at his home in Indian Wells, Calif. Mr. Merta was born on March 12, 1929, in Chicago, Ill., son of Max and Gladys (Clayton) Merta. He relocated to St. Petersburg, Fla., as a teenager and joined the U.S. Coast Guard at 19. He purchased a factory in Chehalis, Wash., in 1968 to begin his career. With an astute mind and savvy business sense, he established 13 Moduline International manufacturing plants across the U.S. and Canada, as well as a series of Lamplighter Sales Centers. Upon being awarded Small Businessman of the Year in 1971, Mr. Merta had the honor of meeting President Gerald R. Ford in Washington, D. C. to accept this honor. Mr. Merta was known for his love of fine dining, good cigars, traveling, fishing, gardening, and sharing stories. He is survived by his wife of 33 years, Sharon, of Gig Harbor, Wash., daughter Leslie Merta (Timothy Guilfoyle) of Gig Harbor, and many long-time, cherished friends. He was preceded in death by his daughter, Laurie Merta, of University Place, Wash.; and sister, Maxine Clayton, of Hudson, Fla.
Have industry news you'd like listed here? Call Magazine Publisher, Patrick Revere, at (616) 888-6994, or email at patrick@mhvillage.com
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SECO21
IS GOING VIRTUAL – AGAIN!
September 27 October 1, 2021
For over 11 years, SECO has been the premier conference for owning and managing successful manufactured home communities. As a non-profit 501(c)(3) organization, net proceeds fund projects for veterans and first responders living in manufactured housing communities. Learn more about SECO and register online at:
www.SECOconference.com
Want to Sponsor SECO21? Don’t miss your chance to reach community owners and managers at the follow-up to the most successful online event in the MH industry in 2020. Last year, SECO attracted 487 attendees and we’re anticipating at least that many attending this year’s event as well. To learn about sponsorship, exhibiting, and advertising opportunities, call (877) 406-0232.
Events
MANUFACTURED HOUSING
Industry Events
Networking Roundtable Thursday, August 12 Nashville, Tenn. | Hilton Nashville Downtown EducateMHC presents the final Networking Roundtable, a celebration of the annual event’s decades-long history and a retirement party for its founder and manufactured housing industry icon George Allen. There will be a state of the industry address by Allen, a keynote presentation by Scott Roberts of Roberts Communities and Roberts Resorts, a networking event, and a very special presentation to end the evening. Please visit www.thenetworkingroundtable.com for more details on registration, exhibiting, and sponsorship. Capacity is limited!
RV/MH Hall of Fame Induction Dinner & Ceremony Monday, August 16 E lkhar t, Ind. | RV/MH Hall of Fame and Conference Center After a year’s wait, the RV/MH Hall of Fame invites industry professionals, family, and friends to celebrate the hall of fame inductees from 2020 and 2021, with
12 | JULY / AUGUST 2021 EDITION
an earlier 5 p.m. start and an abbreviated presentation schedule to accommodate the larger than usual induction class. Dinner will be served, and a cash bar will be available in the newly enlarged and renovated space, with a view of the new Manufactured Housing Museum currently under construction. For more information visit www.rvmhhalloffame.org.
Texas Manufactured Housing Association Annual Convention Sunday, Sept. 12 — Tuesday, Sept. 14 Frisco, Texas | Westin Stonebriar The annual meeting in Texas begins with a Sunday golf event with exhibit booths opening in the afternoon, followed by a mixer and welcome dinner. Monday will start with a sponsored breakfast, educational sessions, and a luncheon and keynote speaker to be announced. The evening includes a cocktail reception and the Chairman’s Dinner. The event wraps up Tuesday morning with a networking breakfast and the fourth quarter association board meeting. Visit www.texasmha. com/events/convention for details.
Events
If you have an event or gathering — virtual or in person — you would like to have listed with MHInsider, please contact us at: www.mhvillage.com/pro/manufactured-housingindustry-trade-shows/
Illinois Manufactured Housing Association Annual Conference and Member Meeting Thursday, September 16 Oak Brook, Ill. | The Drake Hotel The Illinois Manufactured Housing Association invites members to the 2021 in-person annual meeting for legislative and regulatory updates, networking, and educational programming to help grow your business and sell more homes. Visit www.imha.org for more details.
Manufactured Housing Association of Oklahoma Monday, Sept. 20 — Tuesday, Sept. 21 Durant, Okla. | Choctaw Resort MHAO continues to develop programs and make opportunities available for its members, fostering growth through professional development seminars, workshops and providing the most up-to-date information available to the industry. This year’s annual association event will include a two-day suite of networking opportunities, seminars on key issues and trends, and a golf tournament hosted at Chickasaw Point. The members of MHAO have and will continue to make a difference. MHAO membership is an investment in the future of affordable housing. Visit www.mhao.org to learn more and to sign up for your membership today.
SECO21 Monday, Sept. 27 — Friday, Oct. 1 Virtual Event From industry panels, presentations, and roundtable discussions, to the networking mixers and professional exhibits, the SECO National Conference of Community Owners again seeks to improve on that fresh, compelling interaction and camaraderie. Now in its second year in a virtual format, the event provides manufactured housing professionals with five days of the same level of interaction with the utmost access during these extended challenging times. Last year's event was a hit, and 2021 is certain to be better yet! Visit www.secoconference.com for more details.
MHI Annual Meeting Monday Oct. 4 — Wednesday Oct. 6 La Jolla, Calif | Estancia La Jolla Hotel & Spa MHI’s largest membership meeting of the year provides an opportunity to exchange information with industry friends, stay current on housing marketplace trends, and attend the board, committee, and division meetings. Visit www.manufacturedhousing.org/conference-meetings for more information.
MHINSIDER.COM | 13
Tech Trends
Sugar: A Community
Engagement App for Retention and Referrals by Patrick Revere
14 | JULY / AUGUST 2021 EDITION
Tech Trends
A
Fatima Dicko, Founder of Sugar
At the onset of the pandemic, Fatima Dicko launched Sugar, an offering to automate home features and tasks. What already was strong demand for this service became a swift expansion as most Americans adjusted to full-time work/home life. Dicko studied chemical engineering, went to the Stanford School of Business, and worked for Procter & Gamble prior to expanding her academic interest in technology into a full-time business. “I’ve always been fascinated by this idea of taking existing technologies and combining them to make them better,” Dicko said. As a student, she created a hyperlocal version of Craigslist for college campuses – ask for something you need in 15 minutes, and someone nearby who has what you need brings it to you. “Campuses are kind of like these micro communities, and if you could create these ways to connect, you can build this enhanced quality of experience,” she said. “If you were up late studying and needed an energy drink, someone is probably there to bring you one.” Expanding the offering for metro centers is what Dicko was doing with Sugar at the time COVID-19 cases ramped up and people were asked to stay at home, often working and living in seclusion. “I live in L.A. in a large apartment building in Koreatown,” Dicko said. » MHINSIDER.COM | 15
Tech Trends
“I realized I’d never connected with any of my neighbors and it really was like the college campus scenario.”
There is more and more data coming out that millennials, for instance, will pay another $10 or $15 per month for more tech-forward amenities. So, owners are beginning to see these offerings from a fiscal perspective.
-Fatima Dicko
“One in four people continue to work remotely, and people are pretty lonely as well. What we decided to do is put a QR code in the building’s elevator, and within a few days we had half of the people in the building
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corresponding and finding ways to help each other and meet up safely,” she said. They communicated through Sugar, a community engagement app, and a more interesting and interactive version of a web portal that allows residents to pay rent. “If you partner the app and integrate it with smart hardware, such as a function that allows you to open your door on your phone, it’s going to get people into the app more often, increasing the level of engagement,” Dicko said. “And increased levels of resident engagement have been shown to create retention and successful referrals.”
Smart Homes and Communities, More Than Tech Tricks What is a smart home? While the technologies that drive a smart home continue to evolve, including the prevalence of 5G networks, features available on the market today already go well beyond what most consumers think of in terms of smart home features. “More and more technologies are enabling microtasks in the home to become fully automated. Software is being designed to allow residents to manage everything from the washer and dryer to the blinds and lighting all from within a single app” Dicko said. Often, consumer demand for new home tech features derives from people traveling for vacation or work. Travelers tend to have an increased level of forward-thinking, high-tech experiences. “They come back from trips and want to have the same tech-forward experiences at home,” Dicko said. Dicko said creating a great user experience in a smart home is much more than coming up with an app. “It’s about enabling new interactions and experiences that drastically increase the ease and simplicity of daily tasks,” she said. “Not only can I unlock the door on my app, but I also can send a digital key,” Dicko said. “It’s a one-time entry over SMS that residents can share with others after setting expiration dates.” And, more than smart homes, advanced intelligent homes are on the horizon. As data collection turns into systems that operate on artificial intelligence, our homes and communities will become exponentially easier to use and healthier places to live; places that are continually informed and improved upon in real time by our behaviors.
“We’re closer to that than we realize. The prop-tech industry, is very exciting right now,” Dicko said. “People are starting to ask questions about what tech they’re using, why they use it, and how helpful it is. There is more and more data coming out that millennials, for instance, will pay another $10 or $15 per month for more tech-forward amenities. So, owners are beginning to see these offerings from a fiscal perspective.”
Defining a Smart Home Matt Howland is the president of Dvele Homes, a modular home builder that emphasizes technology supported home conveniences and healthy living features. Dvele Homes is also the developer of DveleIQ, a software platform creating more automated and user-friendly homes. When asked about what a smart home is, Howland points to five levels of home technology, as well as a list of tasks those technologies can perform. Five Features of a Smart Home from Dvele: 1. Manual switches and modern thermostats: This is where most of today’s homes exist - manual switches to turn on lights, an integrated thermostat for environmental controls, and enough “sensors” to meet building code; detect fire and poisonous carbon dioxide or carbon monoxide levels. 2. C onnected switches and devices: Many options from large scale builders fall into this category - lights and environmental controls that you can control from your phone via an app. This changes the human-home interface and allows remote control functionality but not much more. While helpful, it’s dated and will only become more obsolete as time passes. 3. Integrated systems: Integrated systems allow multiple devices to work together from a common interface and with some coordination. With the rapid rise of voice assistants, we’re quickly seeing Level 2 homes migrate to Level 3 with the addition of an Alexa or Google Assistant in the home. These hubs allow for multiple connected devices to be integrated into scenes and controlled together, in addition to the obvious integration of home controls. Many of the 10K+ systems also fall into this level with the integration of high-end AV assets. 4. O rchestrated systems: Orchestrated systems apply some level of “compute,” or the ability of a system
Dicko and the Sugar team gather for an impromptu team photo.
to take multiple states of the home and change that environment based on a defined ruleset. This allows for an autonomous home functionality with the right programming. Think of an orchestrated home as a home powered by “if this then that” conditions. This has long been primarily done in hobbyist communities, but rarely makes its way into professional home automation solutions outside of some of the most expensive systems. 5. I ntelligent systems: Intelligent homes are self-learning systems optimizing the health of the occupants, the building, and the planet. In order to build a truly intelligent home, two things are necessary that are not yet prevalent in homebuilding. The first is additional sensors for understanding the state of the home and how changes impact its state. The second is an intelligent, learning private system that connects the various inputs and modifies how it behaves to achieve the optimal state, a system that learns over time and adapts to its owners and external environment, making the home a better home tomorrow. Another key feature of an intelligent home is that it is software-defined, enabling the home to be upgraded as technology and systems advance. “We’re excited to announce DveleIQ, our contribution to improving the smart home world, or in this case the intelligent home,” Howland said. “We’ve designed a software-first platform to ensure the customer’s new home is better tomorrow than it is today.” DveleIQ uses sensors to monitor and improve air quality, to create conveniences like providing the perfect water temperature for the homeowner at any given time, track sleep patterns to automatically adjust lighting and temperature, reduce energy costs, improve privacy, and maintain the best operating condition for residential systems. MHV MHINSIDER.COM | 17
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Water Utilities and Billing Leads to Expanded Offerings for National Provider Conservice Offers Suite of Software, Hardware Solutions by Patrick Revere
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Twenty years ago, a person in the field would check utility meters. Now, new technologies allow for auto-reporting on utility and meter activity on an hourly basis or better, identifying billing mistakes, system disruptions and any developing risk factors. Zack Beck is the national sales manager for Conservice, a utilities and expense management provider, founded in 2000 in Logan, Utah by Dave Jenkins. “I get caught up sometimes and have to remind myself that there are a lot of business areas and competing priorities,” Beck said. “I have always looked at utility management as one of the larges gaps for property managers and place it can really make or break a property budget.
“By leveraging automation to quality check sensitive utility invoices, it becomes an insurance policy to one of your largest expenses and in most cases the second largest contributor to income,” Beck said of Conservice’s role in business management. “Most property managers may take a bit of time to look at the bill just to see that it costs about the same amount month over month. That’s not really an ideal way to ensure the invoices they are receiving from their providers are accurate, and what you miss certainly can add up.”
The Essence of Utility Billing Beck and others in the industry are seeing that the demand for utility billing and other automated, remote » MHINSIDER.COM | 19
Prop Tech
business management services are in higher and higher demand. “We are seeing a thirst for services from the MH space,” Beck said. “Starting with the larger operators, it became clear that managing communities takes more than an adherence to the simple spreadsheet.” A recent client acquired 20-plus communities in a recent transaction, and Conservice will take the burden of acquisition off the owner by setting up utilities accounts in the new ownership name for accounting and billing. Conservice installs submeters for each home that are attached to the community’s main meter. Installing submeters makes for simpler and more accurate leak detection. The mere presence of a submeter tends to curb a resident’s water use by about 25%, Beck said. Beyond inf luencing consumer behavior, submetering and associated technologies help to answer a lot of questions, and save a lot of money. Is the system at capacity? Is there a failure anywhere? Are the utility rates being calculated properly? This
is all on the resident and local providers, sometimes down to the county level, and the practices, processes, and rates are different everywhere. The company employs an in-house development team, and last year processed about $15 billion in utilities, finding $18 million in exceptions for clients. “All of the systems we provide clean up the process dramatically,” Beck said. The “meter wars” have heated up in the industry, Beck said, but he feels getting too competitive defeats the purpose. “That’s really not where the focal point should be,” he said. “For instance, we use all different kinds of meters, and it’s really just a matter of what the best option is for the customer.”
The Value of Expense Management for Community Operators Conservice’s solutions plug into Rent Manager and the other major accounting software providers of choice and create pathways for the
failure to pay utility bills so they can be forwarded and factored in with the rental agreements. “The way we set up our customers, it allows us to fetch the bill directly from the utility provider, getting usage about five days prior to when our clients would normally obtain a paper bill,” Beck said. They double check rates, see that they’re applied properly, finds mistakes, and will dispatch a resolution team to recover the lost amount, as needed, before it ever goes to a customer or resident. The offering even helps residents build credit by offering tools that allow the company to report when rent and utility payments are made on time. “The innovation that has occurred and continues to improve still impresses me daily. We now fetch, quality check and pay roughly 85% of invoice electronically and the site staff hours that are saved allows management companies to reallocate those resources to other areas of the business,” Beck said. MHV
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There is a lot of value in being able to see all the things that affect a sale... that happens from the time you take in a lead.
-Jeff Jackson
Mass Elemental Brings Robust Offering for Small, Midsize Operators
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by Patrick Revere
Jeff Jackson and his St. Petersburg., Fla-based company of five employees are building something big for small to midsize manufactured home community owners. That robust yet easy-to-use tool for managing sales and home inventories comes from Mass Elemental. “It’s an affordable and accessible business management application used for tracking and reporting on leads, the sales cycle, the lifecycle of homes, maintenance schedules, budgeting, and communication,” Mass Elemental founder Jeff Jackson said.
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He brings manufactured housing industry experience from the community operations side as well as the tech solution side of the business. Mass Elemental has a client with 130 properties, one of his larger operators, and others with a single community. “A big part for me was and is being involved with all the steps along the way,” Jackson said. “I understand the role and the goals of the community operators, from the sales staff up through leadership.”
end, we need to make every effort to match homes with homebuyers. We’re finding matches.”
Sales, Budgeting App that Manages Inventory Too Getting new homes into a community is a complex and multi-layered process. It requires a great amount of capital and deserves a scrutinous amount of attention.
“It takes a lot of manpower to move in, manage those inventories, and sell those homes,” Jackson said. “The budgeting process has evolved into budgeting for manpower you can ill afford, and then whenever there is a change of direction you lose time and money all the more.” Mass Elemental currently partners with operators in the 40-50 space property range to oversee how homes come in and to follow them through their lifespan, implementing a great amount of tracking, planning, and outreach for smaller operators. “There is a lot of detail in this solution,’’ Jackson said. “There is a lot of value in being able to see all the things that affect a sale... that happen from the time you take in a lead. This is more than a
snapshot. This is a full picture of the homebuying process.” Elements is a SaaS (service as a software) product that integrates with MHVillage, Wordpress, Yardi, Rent Manager, Manage America, and many other platforms. “Elements is a revolutionary software that is continuously filling voids in our industry. Jeff and his team are constantly adding new features that allow us to process data in the most efficient way,” Cobblestone Asset Management Vice President Coby Yudkowsky said. MHV
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The product, Elements, takes leads from multiple inputs and classifies, assigns, and tracks them to help optimize the sales process toward a successful outcome. “When you log in you will see, for instance, that you have five new leads and two established leads that require attention,” Jackson said. “That’s easily enough done in a variety of ways by most sales tools, but as you grow your business you find that you’re managing hundreds of leads or 2,000 leads, it’s a bit more difficult.” Elements provides a variety of interface configurations depending on who’s using the app, what their role in the company is, and what they’re trying to accomplish. For instance, Jackson has implemented a category he calls “rainy day leads”. These leads are a relatively low-level priority, but Elements offers tools for engaging those prospects to find sales that are otherwise overlooked as part of managing the book of business, he said. “When there are no appointments in the field, prospects sitting in front of you, and all of your scheduled contacts have been made, how are you going to make the best use of what remains in your day? In the
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by Patrick Revere
From Left, Tanner Buuck and Andrew Jones from Yardi work with a customer during the 2021 Florida Manufactured Housing Association Annual Conference in Sarasota, Fla.
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Yardi software is a solution for approximately 50% of multifamily and commercial properties in the country, and the company now has firm footing in manufactured housing. The billion dollar company with more than 7,000 employees has a dedicated team to service manufactured housing industry clients looking for property management and accounting systems. “We have the resources you would anticipate from a global company, but we also provide a very focused manufactured housing team,” Yardi Vice President Jeff Adler said. “It’s a good balance, we have a deep skillset to draw upon for our clients.” Andrew Jones and Tanner Buuck manage Yardi’s manufactured housing and self storage division, working
with the Yardi Breeze product that was redesigned for land-lease communities about three years ago. Adler said Breeze can be used to manage a single community and all the way up to the largest operators, all based on a per-homesite basis.
National Presence, Professional Resources Yardi has about 40 offices across the country, and has built a name in property management technologies, with accounting capabilities that require no other accounting software. With 4,000 clients today, Yardi tailors its features and schedules to the needs of manufactured home communit y operations today, particularly through the COVID-19 pandemic. The solutions
provide corporate and property-level website communication and transaction offerings. “You can do business on the platform, which is what is needed, particularly now. It’s been a critical strength but in the pandemic and coming out of the pandemic it’s proven all the more valuable,” Adler said. “From tracking lot rents and collection to managing loan servicing and utility billing,” Adler said. “They’re built together, it’s all web-based and easy to use." Simplifying back office work allows owners and managers to spend more time in front of residents, or prospects.
It’s property management and accounting with no need for Quickbooks. That’s the combination that I really think is attractive for property managers. -Jeff Adler “That’s where they should be,” Adler said. “The back office ideally should really take care of itself. And if you spend too much time thinking about your software, you have the wrong software.” MHV
MHINSIDER.COM | 25
Prop Tech
PropTech Behemoth Grows in Manufactured Housing Industry, Experience
Prop Tech
INVESTORS FLOCK TO STREAMLINED PURCHASING SOLUTION FOR COMMUNITY MANAGERS by Sean Vichinsky
26 | JULY / AUGUST 2021 EDITION
Prop Tech
Our ambition is to streamline & simplify the way MH portfolios purchase the goods and services they need to maintain and operate their communities. -David Bowen
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Community operators find efficiencies in a variety of ways, becoming very strategic about portfolio or property transactions, and other large, capital intensive purchases. But is there a strategy for when you need 15 homes set in Fort Wayne, a half dozen dryers for the family park in Houston, or 4 playgrounds for a couple communities in Alabama? “Our ambition is to streamline & simplify the way MH portfolios purchase the goods and services they need to maintain and operate their communities. That starts with making the procurement aspect of a community manager’s job a little better and a little easier,” Dave Bowen, the CEO of Purchasing Platform said. The land-lease portion of the manufactured housing industry continues to consolidate, and the institutional owners are looking for
ways to standardize practices with comprehensive service providers and technology solutions that can expand offerings and reduce hard costs. As a result, streamlining vendor management and driving compliant procurement practices are increasingly prioritized. Founded in 202 by Peter Hepner, the original aim of Purchasing Platform was to develop an easy to use marketplace, like Amazon for manufactured housing, and provide a true “one-stop-shop” for the products regularly purchased by community managers. Building a “PropTech” startup is never easy, and in late 2016 the company required funding to scale operations. Bowen injected significant working capital in exchange for a controlling stake in the business. After leaving to work for another » MHINSIDER.COM | 27
Prop Tech property investment & management firm, Hepner returned to Purchasing Platform in 2019. “To say that Dave brought some new ideas to the business would be an understatement,” Hepner said. “His successful background in building procurement technology along with his strategic vision of how we can expand how we support Members has had a huge impact on our value proposition and our growth trajectory.” And in raising capital. The company brought in more $7.5 million in institutional capital in less than a year led by Method Capital, a major venture capital firm in Chicago.
More Than Just a Marketplace: Integrated Support Functions While offering a MH industry-specific marketplace remains a key component of the solution today, the company’s value proposition has expanded significantly. The technology now offers several features that drive significant portfolio-wide efficiencies,
28 | JULY / AUGUST 2021 EDITION
control and transparency into what is being purchased every day. Users of Purchasing Platform now benefit from an audit trail of all purchases, from every vendor, with multi-level workflows that allow community managers a moderate amount of spend before having expanded levels with added training, or for those at the director/executive levels. Office supplies, paint, commercial playgrounds, HVAC and skirting, golf carts… the list goes on. “Let’s say you have someone new on the team and maybe they haven’t had all the training they need and they start buying stainless steel appliances... You can edit the order before it is processed in our system and also set up preferences to ward against that non-compliant buying behavior in the future,” Bowen said. All the GL Code classification work is done automatically within the system before the funds are deployed as well, creating soft savings by removing the need for expense reports and similar documentation. In addition, the platform now allows for tax exempt purchasing in qual-
ifying states and a lot/unit number drop down to allow Community Managers to assign specific expenses to specific homes. Each client can also apply for a single credit check, rather than being vetted by multiple vendors, and will be provided concierge level treatment with preferred vendors of every variety, including every day names like The Home Depot, Lowe’s. Office Depot, Sherwin Williams, Style Crest, Blevins, Playcore and many more. Another byproduct of the platform is the reduction in trips that Community Managers take to local stores. One large land-lease community owners said Purchasing Platform reduced the organization’s number of trips to big box stores, by more than 60% in six months. Not su r pr i si ng ly, much of Purchasing Platform’s technology roadmap has been driven by suggestions from the company’s 200-plus member portfolios. “If our primary goal is to make the lives of Community and Regional Managers a little easier, we want to
Services and Project Management Purchasing Platform considers its vendors customers, too, providing a
stabilized marketplace, predictable pricing, and new business in an expanding industry. Interestingly enough, the offerings have gone beyond standard products that communities buy every day and expanded into Services and other management related expenditure. “If you think about the operational spend that happens daily, monthly, or annually, you’re going to get maintenance supplies. What we were missing out on was the more strategic stuff, like an installed HVAC unit, or having new homes set, or getting a property paved, arranging for tree trimming or leak detection services… these are all very common needs,” Bowen said. “And thanks to the guidance and support from some of our members, we’ve started to
support these more strategic purchases too. In fact, if you can’t find the thing you’re looking for, Purchasing Platform’s in-house Project Management Team will find it for you. Composed of former senior professionals from across the property management sector, this team acts as an extension of Purchasing Platform’s member organizations and can facilitate multiple bids from multiple vendors on everything from new home setting to paving to landscaping to site amenities to vehicles and more. MHV Sean Vichinsky is an editor of MHInsider and a marketing copywriter for MHVillage.
MHINSIDER.COM | 29
Prop Tech
make sure that the technology we’re building is going to deliver on that goal,” Senior VP of Members Operations & Product Management Arjun Dutt said. “One of the great things about our industry is that our users are not afraid to share feedback.” The company has recently overhauled its search capabilities and will be rolling out an entirely new Member experience in late August. While more than 30 of the Top 100 portfolio owners already use Purchasing Platform, the technology that the company is building is filled with features and functionality that any portfolio owner will need to save money and drive compliance.
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UNDER ATTACK
Reduce Risk of Damage From Hacks, Data Loss by Kurt Kelley
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Weather damage to your property and bodily injury associated with your business operations are significant and acknowledged risks by community owners and retailers. But the real and constant threat related to those transmission lines running in and out of your computers isn’t fully understood. Theft of your proprietary data, theft of your »
MHINSIDER.COM | 31
Insurance
customers’ data, destruction of your computing systems, wiping out of your bank accounts, and cyber extortion are some of these risks. If you don’t know what your employees are doing on their computers, and who outside your company can access your systems, you are at risk. In the past year there have been multiple six-figure thefts from the bank accounts of community owners. Proprietary data has been stolen from multiple manufactured housing industry member companies. Data theft and subsequent extortion attempts have vexed our industry. Hackers and cyber thieves now have “automated” regular attacks. My company is certainly at risk. Mobile Insurance not only houses private client information, but also holds money in trust for our insurance company partners. We are a prime target. Here Is What We Are Doing To Reduce Our Risk: 1. R egular security training of all employees. Our anti-virus software company offers automated, thorough training modules via WebRoot. Employees are sent regular online training videos and their progress is monitored. The most common way for hackers to access your company system is by tricking employees into opening the door and welcoming them in. 2. This same system sends our employees regular simulated phishing attempts. Results are tracked. This teaches management about when more training is needed. When an employee fails, they are directed to a corrective educational video (and publicly flogged, of course). 3. W e use a password management software system. It sets complicated and regularly updated passwords for our systems. 4. Accessing our systems via new or unidentified terminals requires further confirmation from approved terminals. 5. Electronic wire transfers require in-person confirmation with our banking partners. 6. Our systems now have advanced spam and virus filtering software. Encrypted email attachments are decrypted and subjected to an in-depth virus scan. Phishing emails are blocked and flagged. Because I’ve been forced to hire those pesky and fallible creatures commonly known as humans, I also purchased
32 | JULY / AUGUST 2021 EDITION
a quality cyber liability insurance policy. This protection is designed to save me when all else fails. For about $1,800 per year, I now have: • A team of computer experts to respond to, and pay for, all cyber extortion threats • $1,000,000 coverage for electronic wire fraud • R eplacement cost for all equipment ruined due to viruses • Costs to restore and replace all my company’s lost data • Liability protection in case my customers are harmed because I lost their data • Loss of income coverage for losses caused by inoperable hacked systems • Liability protection if credit card systems or data are misused • $1,000,000 of liability coverage if my system is co-opted to attack another’s system or one of my employees uses copyrighted data or information My cyber liability company tests all my systems and sends me recommendations on how to better defend my company. I think this is the best value insurance policy I ever bought. Prepare for your coming cyber-attack. Beef up your systems. Train your employees but protect your business with insurance, for when all your preparation has failed. There’s a world of cyber thieves out there praying you don't know better. MHV Kurt D. Kelley is president of Mobile Insurance, a nationwide agency specializing in insurance for manufactured home community owners, and is an owner and operator of investment real estate.
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Professional Profile
LET YOUR SOFTWARE SET YOU FREE An Ohio Boy in the ‘80s Harnesses Latest Technologies for Family Properties by Patrick Revere
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Dave Hegemann, like most kids his age, was simply looking for more time to spend with his friends outdoors during the summer. “My dad had manufactured housing parks and campgrounds, and other properties that he rented,” Hegemann, founder of Rent Manager and President and CEO of London Computer Systems, recalls. “He used to do the books by hand, and I used to help him once I got old enough. It was my weekend thing. I couldn’t go out and play basketball or anything else until I was done.” Someone had to collect readings, record usage, and calculate the proper charge. Utility billing was on a ledger, and required checks and re-checks. The rapid-fire keystrokes of the adding machine held off even calculators in office spaces and storefronts everywhere. But by the mid- to late-80s, Hegemann had access to an Apple II, and had his eye on what a little company in Washington was doing with its software.
34 | JULY / AUGUST 2021 EDITION
Hegemann hard-coded the first version of Rent Manager specifically for his father’s operation, but later received requests to rewrite the program for a larger property owner from London, Ohio. That initial bit of work inspired the name of Rent Manager’s parent company, London Computer Systems (LCS). “I wrote the program for him, and about five other manufactured housing communities. I got into it, and it was a lot of fun. I basically wrote it in a summer,” Hegemann said. “That worked so well we thought we should bring it down to the Louisville home show.”
An Entry to the Industry in Louisville Hegemann set up his computer at the Louisville Show in 1988. No one knew what property management software was. But they’d heard of the new desktop computers. “Basically you were competing against doing the books by hand. There were no other solutions,” Hegemann said. “A lot of times people
would come to the booth just to see the computer. Customers may have heard of a personal computer at that point, but hadn't actually seen one.” Hegemann said he felt the show would be a success for him if he could sell a single program. If he could find one customer, he’d keep course. “I sold one program to the first guy I talked with... he spent about four hours with me, went away and kept coming back asking questions,” Hegemann said. “Eventually I just said, ‘Look you’re going to have to buy this thing’.” Then there was the next hurdle: “I couldn't process a credit card,” Hegemann said.
How Rent Manager Became a Business Eventually, the card was run and the sale was made, but the divide between tech work and building a business was evident. “I’d known how to write code, but I didn’t know how to sell it,” Hegemann said. “Because there was no internet, I just jumped on
a plane and went to shows all over the place, talking to people directly. If someone bought the program and if something didn’t suit them, I’d hear about it at the next show, and I was able to make the product a lot better that way. It was a lot of fun.” Much of the momentum with the product and the business happened prior to the advent of the web. The world was just figuring out software, how you should price it, and how it’s maintained. Be fore mo s t of t he world knew Bill Gates, Hegemann was paying attention. “I saw what Microsoft was doing, how they were writing software and how they would sell it over and over again, and that may seem obvious now, but it was novel in its time and that’s what I wanted to do.” One of the distinguishing factors about Rent Manager’s offering that may be rare in the marketplace is that the offering is built on a single code base, similar in nature to the way Microsoft was rolled out. The program starts out basic, and then
you can turn on components as you go and become more sophisticated. “We do this also because our product is used by all different property types, and you need to be able to service all of those needs,” Hegemann said. “When we’re working with a customer, we build up from the base offering with added features that address specific needs within an operation.” Hegemann’s degree is in systems analysis, and he understood early on that he was “all in” with the software industry. The chance that his application of technology supports real estate was a matter of his surroundings, but it also became a preferred destination when the wide array of needs in the space became clear. LCS Chief Operating Off icer Brittany Christerson has been at Hegemann’s side for 12 years and has seen firsthand how his early industry experience impacts his leadership outlook. “Because he g rew up in the property management business,
Dave is quick to remind us there is an urgency to our work,” she said. “He challenges us to look for ways to make the lives of property managers easier, and that in part comes from his early years working with his dad. We are constantly working to improve the quality and execution of our offerings because we know they have a real impact on our users.” After building the program, Hegemann said he realized something important about his role. “There was only so much that I could do by myself... it was about motivating people,” Hegemann said. “The most exciting thing to me became building a company and it took a long, long time to interview, ask good questions, recruit people and keep people.” “You have to give people a feeling of ownership, with some latitude to have success on their own,” he said. “I learned that if your team is happy, they’re going to make your customers happy.” Today, LCS products include the Rent Manager property » MHINSIDER.COM | 35
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Rent Manager Integrated Technology Partners One of the many ways Rent Manager has continued to grow with advancements in technology is through the creation of its Integrations Program. Users have freedom to seamlessly integrate any number of property management providers into their Rent Manager database. More than 100 technologies—ranging from utility management resources to digital payment processors — have joined the Integrations Program. Manufactured housing providers include AmRent, AvidXchange, Metron, NetVendor, Purchasing Platform, and Zego. Visit RentManager. com/Integrations for a complete list of included technologies and services.
How to Work with Emerging Technologies One of the primary tasks that engrosses his employees is early adoption and experimentation
with new platforms and programs. Rent Manager, Hegemann said, has always been one of the first—if not the first—property management solutions made available in the “next” technology format, whether it’s Apple, DOS, Windows, the internet or mobile apps. “That’s one of the things that I love so much—technology changes a lot and you really have to work to keep up with emerging platforms and to make your product all it can be in any of these environments,” Hegemann said. “Rent Manager has always been backward-compatible, from day one.” Rent Manager’s customers are brought up to speed on all the changes, advancements and added options each year at the company’s user conference, which alternates
cities every fall. This year’s Rent Manager Users Conference takes place Nov. 9-12 in Colorado Springs, Colo. The event has become a product of its own for Rent Manager. “Oftentimes, the conference is the first place we meet with our customers face-to-face. It’s when you learn how enthused and appreciative people are,” Hegemann said. “It’s a great morale thing for us, it creates a lot of energy, and we essentially plan the event year-round.” There will be 71 user sessions at RMUC.21, presented by Rent Manager staff and industry authorities. Hegemann said he attends at least a portion of each session. “I want to know that we’re on track and providing value for our customers,” he said. MHV
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management software, rmVoIP telephone systems and enterprise-level hosting solutions via the company’s Sentry Data Center. The Cincinnati-based company also provides complete network design, implementation, and support services. They even offer custom website development through its IT Services and Web Design Services divisions. “Dave makes it a point to meet every new hire and regularly visits with all our teams because he wants employees to know that he truly cares about their experience,” Christerson said. “He has created a culture where we work hard, and we are proud of our work, but we also have a lot of fun.”
Industry Development
A HISTORY OF INNOVATION IN COLORADO SPRINGS by Bruce Thompson
H
Housing continues to str uggle to meet the current demand. There is a national shortage of four million units, according to recent information from the Joint Housing Studies Program at Harvard University. In many parts of the U.S., soaring prices have pulled home ownership beyond the reach of many Americans. While there is no single solution, offsite construction is growing as a percent of total production due to its predictability in cost, timing, and quality, as well as efficiencies in labor and material. For many of us involved in housing, we dream about what the world would look like today, for instance, if Sears had kept producing its catalog homes. During the course of 30 years, more than 100,000 standard floor plans were built. I truly believe that if this pace of innovation and distribution had persisted, there would be an entirely different housing supply chain and far less of a shortage. To better understand how far advanced Sears was at the time, it is helpful to look at what is thought to be among the first Sears homes in the country, brought by rail to Colorado Springs well over 100 years ago. 38 | JULY / AUGUST 2021 EDITION
John Clear, the owner of the Sears home, wrote this testimonial for a local newspaper, The Gazette, following construction: “I am just as well pleased today, three years after building, as I was at the time everything was new. I will state that I am more than pleased with my home built by my plans and your material. The quality of the material furnished by you far surpasses any that is being furnished for other houses being built right here, and your prices are fully 50 per cent lower. I received my entire order in a little more than two weeks from the time you shipped it from your factory and not a single article was damaged and was packed in fine shape.”
‘Bott to the Future’ In many respects, it is a version of “Back to the Future” this summer in Colorado Springs. K2 Home Builders is introducing standard floorplans built offsite by URBANEER into urban infill sites in the Bott Street neighborhood, platted in the 1880s by real estate developer Anthony Bott. Arriving from France as part of the 1859 gold rush,
Industry Development
Bott became a successful businessperson and had a major impact on an area at the time known as Colorado City, later incorporated into the city of Colorado Springs. When the Bott Street neighborhood was established 130 years ago, it represented the rapidly changing needs of 19th century inhabitants. At the time, many towns in the West were transitioning from first wave to a second wave society, as noted by futurist Alvin Toffler in the book “The Third Wave." As people moved west in the second wave, fewer came to farm and more were drawn to mining and to city centers and the related industrial-era jobs. Second wave housing represented the innovation of the day, featuring indoor plumbing, the telephone, and electricity. Most of the homes were single story, compact structures that met the needs of a new demographic trend — the nuclear family. Fast forward to the 2020s and consider the changes in both household composition and the new market demands as we fully enter that “third wave economy." One in five households consists of solo occupants and another one in
five is multi-generational. The “electronic cottage” that Toffler envisioned is now called work-from-home and for many of us that routine will migrate to part-time office and home. The world of 8-to-5 work and exclusive in-class instruction has permanently transformed. The city of Colorado Springs, like many nationwide, is feeling the effects of the housing shortage. A year ago there were over 1,000 homes in the city priced under $600,000, according to Mayor John Suthers. Today, there are 19. The shortage is especially true within the “missing middle housing spectrum” as defined by Opticos Design. Missing middle housing touches on both price and housing type, many of which were allowed in the past but are generally precluded in current zoning. Structures that have been zoned out of the market include accessory dwelling units, duplexes, fourplexes and other multi-family buildings. Builders today will tell you they duck to avoid the missing middle housing market due to economics. Larger custom homes are more profitable to build. Although 20% of new home buyers surveyed by RLCO expressed » MHINSIDER.COM | 39
40 | JULY / AUGUST 2021 EDITION
Homes on Long, Narrow Lots K2 Homes is up for the challenge and will build 21st century homes on the long and narrow lots that were platted long ago by Anthony Bott. Principles Bridger Kucinski and Necole Austin understand the changing market and the need for a new development approach. They are targeting buyers who are willing to trade square footage for price point, location, and home features. K2 Homes has embraced offsite construction as an approach to achieve a more predictable cost, delivery date, and quality standard. Within a span of six months, the company will deliver turnkey homes to a market desperate for more housing units. Kucinski said he was introduced to offsite construction a few years back by a business partner. He, Austin, and other colleagues went on a bit of an odyssey to find a builder who could provide the homes they all had their minds set on. “Infill and urban density can be achieved by shrinking living spaces and creating a new American dream,” Kucinski said. “A dream where simplistic living and a sense of community promotes happy, responsible, and meaningful lives. Housing innovation allows people to get more out of less, thereby simplifying their lives, allowing them more time for adventures or rela-
tionships, all while cutting down our environmental footprint.” The initial units will serve as a pilot for future projects. The location is a key selling point. Just 1.5 miles north of the famous Broadmoor hotel that has accommodated almost every president in office since Dwight Eisenhower. It is walking distance to old Colorado City and Red Rock Canyon, a 1,474acre open space, and is about a block to the west with multiple trailhead access points moments away. Colorado Springs is a bicycle-friendly city with dedicated bike lanes. Bott Park sits across the street corner to the east and offers tennis, basketball, a playground, and picnic shelter. At the end of Bott Park are local shops, restaurants, a micro-brewery, and offices.
The world is changing, and there is a need for new approaches to housing that deliver more than what meets the demands of decades and centuries passed. The concept of 21st century living with K2 Homes, like with Anthony Bott in the 1880s, is a pioneering effort that opens new frontiers for next-generation home buyers. MHV Bruce Thompson’s career is the convergence of two passions: the built environment and the digital revolution. After a 20-year career in the global technology industry. he and his wife Brenda founded URBANEER to help relieve the housing crisis through innovative solutions that create compact, configurable, and connected living spaces.
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Industry Development
interest in homes under 1,500 square feet, the average new home size continues to be 2,400 square feet. Housing starts pale in comparison to current market demand, both in terms of features and price points.
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Industry Development
3 WAYS RISING INFLATION WILL IMPACT MOBILE HOME PARK OWNERS
and what to do about it by Kevan Enger
44 | JULY / AUGUST 2021 EDITION
Industry Development
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It’s a fact. Inflation is at a 13-year high. The June all-items Consumer Price Index (CPI) increased 5.4% from a year earlier, the largest jump in 13 years. The news prompted a whirlwind of market activity with conflicting opinions from talking heads suddenly filling the airways and investors scrambling to understand what inflation means for the economy and their portfolios. Further confusing matters is the series of anomalies that preceded and have fueled the current run-up. This includes traditionally paradoxical occurrences of a labor shortage against a backdrop of high unemployment, rising home demand and prices in the middle of a recession, and a confusing drop in the 10-year Treasury yield to 1.3% (July 16, 2021) from 1.75% in March. Amid the contradicting signals, community owners have multiple things to consider that will directly impact their investment, wealth, and future. In this article, we will look at the impact of rising prices, investor flight, and the increasing cost of debt. But f irst, what is the Consumer Price Index and why does it matter? The Consumer Price Index, commonly referred to as the CPI, measures the change in prices paid by consumers for goods and services. It considers the prices paid for food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. It gives us a good ongoing idea of where prices are at the moment as well as the affordability of daily necessities. Consumer prices are not the only thing on the rise. Wholesale prices are also increasing — a sign that inflation is moving at a higher-than-expected rate. The June Producer Price Index (PPI), which measures what companies get for the goods they produce, went up 1% monthover-month and jumped 7.3% year-over-year. »
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Rising Costs Versus Raising Rents While real estate has traditionally been considered a hedge against inflation, the anomalies in this landscape pose some challenges, especially for park owners. With prices increasing across the board — a perfect storm of price increases, in fact — owners must consider the impact on their operating costs including everything from labor and maintenance to utilities and management. In typical inflationary scenarios, landlords have the option of increasing rents to offset the increase in prices, or owners could rely on the corresponding increase in property values for a longer-term return. However, the current landscape is not your run-of-themill inflationary cycle. This go-round we have a high unemployment rate, stimulus payments that just started to run out, and a recently expired eviction moratorium. Historically, periods of high inf lation have been accompanied by high levels of employment. The unemployment rate in June was at 5.9 percent with the number of unemployed persons at 9.5 million. While these are lower than their April 2020 highs, they remain well above
their pre-pandemic levels of 3.5 percent and 5.7 million, respectively, in February 2020. These high unemployment rates plus the end of the stimulus payments could mean tenants will be more resistant to rent increases. Because the CDC’s eviction moratorium has ended, landlords who want to proceed with eviction may find themselves with legal expenses and a loss of revenue from non-producing lots. Meanwhile, operating costs will go up. In June, labor compensation costs for private industry workers increased 2.8% over the year. Wages and salaries increased 3.0% for the 12-month period ending in March 2021. Hitting the maintenance and repairs line item are steel, lumber, copper, and aluminum prices that have experienced periods of historically high prices this year. High costs may prompt some owners to put off making repairs, updates, or upgrades to the property. This could put them at a competitive disadvantage against other manufactured home communities when competing for residents.
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Over the last few years, manufactured home communities have experienced a period of rising prices as investors from a broad array of asset classes seized on opportunities in the asset class. Year-over-year, manufactured home parks have seen a price growth rate of 18%, according to Green Street’s Commercial Property Index. Since pre-COVID, asset class pricing has increased 13%. Fueling the mobile home park frenzy was the limited supply, the lack of affordable housing, and the broad range of value-add opportunities. As a result of the run-up, we are seeing super low cap rates in the market this year. The average cap rate is sub-five at approximately 4.46%. Right now, our team has several deals going at the one and two percent cap rate range — in other words, prices are at peak, and some would say beyond peak. What makes these transactions doable is that they are development deals. Moreover, the pandemic has changed the landscape creating competing new growth opportunities in other asset classes, namely industrial and storage. While once the leader in the year-over-year growth category, manufactured home parks are now in third place. Leading the property pricing pack is self-storage at +24% from pre-COVID levels and industrial which comes in second at +21%. As the pandemic haze clears, inflation fears grow, and investors move to hedge their positions. Community prices may have to decline to compete for buyers. This would shift the landscape from a sellers’ market to a buyers’ market.
Cost Of Debt Another harbinger of inflation is the latest announcement by the Fed noting that it could execute rate hikes as soon as 2023. This after previously stating that it did not expect to make any increases until at least 2024, moving up the timeline a year. The only reason why the move was slated for 2023 instead of 2022 was the projections of only two members from their 18-member committee, per Bank of America credit strategist Hans Mikkelsen as reported in CNBC.com. In addition, they also raised the headline inflation expectation to 3.4% — a full percentage point higher than had been previously announced in March.
For commercial property and community buyers, that means now is the time to make leveraged property purchases and lock in historically low interest rates before they go up. For the owners that may have a timeline to sell within the five years, it is worth considering following in the Fed’s footsteps and moving up your timeline. Here’s why. Still Low Interest Rates Interest rates have yet to go up, but they will. They cannot and will not remain at these historically low levels. As inflation goes up, rates will be increased to tighten the supply of money. You Can Still Exchange Low rates now mean you will pay less for any assets you wanted to acquire with debt in the future. More importantly, because the government has not yet restricted the ability to execute 1031 exchanges, sellers can double or triple their portfolio and wealth with an exchange. COVID Changed The Landscape The pandemic disrupted the market and new opportunities for growth and passive income became available in other asset classes such as industrial and self-storage. Recognizing this at this moment in time is a strategic advantage because now is that sweet spot where you can see change on the horizon and act… • Before inflation spikes up further. • Before interest rates are increased. • Before mobile home park prices go down. • Before we shift into a buyers’ market. • Before a pricing frenzy takes hold in the growth asset classes mentioned. • Before 1031 exchanges are restricted or eliminated. Taking strategic action now, allows you to hedge against inflation, grow your wealth, and position yourself and your portfolio for the next 20 years. MHV Kevan Enger is a partner and manufactured housing director for Capstone MH. He specializes in helping mobile and manufactured home park property owners across the country successfully position, market, and sell their properties to maximize their returns. Capstone has seven offices in five states throughout Florida, the Southeast, Midwest, and Mid-Atlantic.
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Industry Development
HOME RESALE OPERATIONS BOOST LONG-TERM COMMUNITY GROWTH, VALUE Even Modern, Sold Out Resort Locales Benefit from Home Resale Efforts by James Cook
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The manufactured housing industry has always been on the cutting edge of technology, from the speed in which homes are manufactured, to the equipment used to build the homes, to the aspect of building a complete home in an environment protected from outdoor elements. As technology continues to improve, opportunities to develop a higher quality product continue to grow.
But there is something that has always been perplexing, and that is the number of owners who will disregard home resales, both in regard to resident needs and overall value of the community. While we finally have more and more communities being built, community owners should remember the consumer and their own property values when homes come up for sale. » MHINSIDER.COM | 49
Industry Development
The Resurgence of New Manufactured Home Communities One of the most exciting trends in our industry today is the resurgence of ground-up development for manufactured housing. When an owner develops a new community, they are hyperfocused on new home sales because the success or profitability of the project is directly tied to the absorption rate. New home sales in new communities are driven by heavy advertising and fanfare, combined with display models and a robust sales staff. The biggest variable and question here is where one advertises. MHVillage combined with SEO and Google AdWords driving traffic to the main property website are the most obvious mediums. Then, there’s heavy social media activity and a large presence on Facebook.
their home). Ultimately, the lack of a presence in the community resale market and subsequent disjointed pricing, marketing, and advertising processes result in lower overall home values.
Create the Needed Plan for Systematic Home Resales The suggestion here is not that owners fully take over all resales, but there seems to be a simple middle solution. First, create an MHVillage account and list all “New” and “Used” sales. Next, list all resales on the park website alongside your new sales. Advertise and promote resales everywhere there are listings for new or inventory homes. Finally, have your office maintain a resales desk with a list of all available homes and their details, as well as the contact information for the representative
The path to achieving these goals starts with the common areas, infrastructure, and aesthetics. Fix the roads. Clean up or replace the signage. Update the office and clubhouse.
-James Cook
Additionally, there should be a combination of print, radio, and TV time, raising awareness of the development and the opportunity for local affordable housing. The challenge comes when ownership is done filling their community. Many owners divorce themselves from the home resales, leaving residents to fend for themselves and sell peer-to-peer. This causes inefficiency in the resale market and gives far less pricing guidance to the consumer (the resident trying to sell 50 | JULY / AUGUST 2021 EDITION
that is handing the resale (individual, real estate agent, etc.). The idea of promoting resales alongside new and used community owned homes may seem counter-intuitive, but it is the right long-term decision. Strong resales actually lead to more new sales and show potential home buyers that they will have liquidity and are less likely to take a loss on resale. In comparison, an aging community with poor home sales is a dying community. A community with a robust resale market
allows the residents’ home values to hold their own and, in some cases, even rise. Ultimately, this will help shrink the delta between new and used homes, making the new-home premium seem more reasonable for prospective home buyers. By seeing the community owner’s involvement, these homebuyers also will have the sense that if they buy the new home and ever need assistance with resale, ownership is invested in having it be swift and fiscally beneficial. If community owners track resales, they would recognize trends in the pricing data related to age and size of a home, location within the community, and many other factors. This information can help owners begin to strategically buy back the lowest quality homes for a remodel program. The process would breathe 20-plus years of life into the community. Once resales are strong enough, an owner can selectively pull out the oldest remodel homes to bring in new homes. A crucial notion to consider about the resale-remodel approach is that it will set a “floor” on resales, which improves the socioeconomic status of the resident base. People buying a home for five to 10 years’ worth of lot rent are invested in the community. A homebuyer looking for one or two years is basically a renter. The less invested resident is less likely to care for the community and is more likely to break rules and upset other residents.
Achieving the Goals of Community Ownership There are two primary goals for every community owner: 1) improve your residents’ overall experience
items that allow the resident to gain compliance, or offer to buy the home. Finally, community ow ners should utilize different amenities to improve the overall quality of life for their residents. There are many nonprofits looking for a venue and an audience to help. If there is a rec hall or pavilion, offer a place to host English classes, computer classes, and after-school programs. There are charities with clothing, food, and other services, (depending on the age and socioeconomic group,) that are very relevant and will add value for the residents. Look for activities that bring people together and increase their enjoyment, such as movie nights or sporting activities like soccer or table tennis. Now, should a resident not like the improvements and inherent rent
increases justified by demand and the market, an environment has been created for them to quickly liquidate their home. This gives them the opportunity to be part of a clean, safe, and affordable manufactured housing community. MHV James Cook is the national director of brokerage for Yale Realt y and Capital Advisors. He entered the manufactured housing and RV property asset class in 2005 as a licensed agent listing homes for a local investor. In 2012 he founded the fully integrated finance and brokerage shop and has accumulated transactions exceeding $1 billion in value. He offers perspective at a national level, providing insight into the niche industry.
Prove Your Industry Expertise with an MHEI Certification Accredited Community Manager (ACM®) The preferred designation for community managers Two courses available in person or online that cover MH community management topics including: n Management and Resident Policies n Community Maintenance n Leasing and Sales Techniques n Marketing Communities n Financial Management n Physical Asset Management n Federal and Fair Housing Law
Professional Housing Consultant (PHC®) A complete study of retail from the history of construction to closing the sale Topics covered include: n Retailer Responsibilities n Placement Options n Finance Overview n Fair Housing n Land Home Finance n Personal Property Finance n Credit Applications n Selling Skills n Comparing Manufactured Homes to Other Forms of Housing and Communication
Visit www.ManufacturedHousing.org/Education for more information MHINSIDER.COM | 51
Industry Development
and quality of living; and 2) make a dollar. The path to achieving these goals starts with the common areas, infrastructure, and aesthetics. Fix the roads. Clean or replace the signage. Update the office and clubhouse. Then, build a new website, promote the property with fanfare, answer the phones, and create strong availability. Furthermore, establish new rules and, even more importantly, enforce them. These rules should cover residents’ yards, home exteriors, and overall cosmetics. Implement a 10-point inspection for resale that requires the home to be properly tied down and skirted, the exterior to be clean and roof intact. If for some reason the homeowner cannot pass the inspection, the community owner can provide a list of fixable
Industry Development
The Promise of a New Model with a Rich History Augusta Communities is Unique Among Industry Nonprofits
M
by Patrick Revere
Manufactured home communities have been a hot commodity for owners and investors for years now, and with much of the consolidation having occurred, it’s often said to be a difficult market for buyers. There are too few communities to choose from, prices are high, and you’re competing against a lot of other potential buyers. For Suzanne Taylor and her team at Augusta Communities, a 501(c) 3 affordable housing organization, the challenge is all the more real. “Augusta is competing with for-profit investors who have larger organizations, plenty of access to capital and offer a very quick close. For-profits can take on more investment risk. The motives of most for-profit owners are different than ours. Our central goal is to maintain housing affordability for our residents and to improve their community,” Taylor said. “In the nonprofit model there’s no distribution of cash flow, it goes back into our efforts to build the community and fund future acquisitions.”
52 | JULY / AUGUST 2021 EDITION
The nonprofit model was born out of thoughtful negotiations with Southern California municipalities more than 20 years ago at a time when residents were reaching out to their city officials for assistance in maintaining housing affordability. Since that time, Augusta has acquired six communities of its own and manages parks for local municipalities. “Augusta’s nonprofit model was developed as a way to work with municipalities to fund these acquisitions, because they can issue tax-exempt bonds with favorable interest rates and 100% financing or more,” Taylor said. “That allowed us to be more mission-driven in general, putting the residents’ needs first in all of our communities. Augusta’s financing options have expanded beyond bond financing. Earlier this summer it closed on a $15 million Duty-to-Serve Fannie Mae loan. The nonprofit model allows Taylor and her all women-led management team — Accounting and Finance
Industry Development
Director Chrissy Summerville, Business Development Director Erica Taylor, and Director of Community Services Vanessa Hatch — to make common area improvements, upgrade utilities, renovate or replace homes and offer a robust resident services program. Resident programs within the communities include: • Financial assistance • Vaccination clinics • Summer camps • College scholarships • Free tax prep • Homework clubs • English language programs • Health fairs • Good neighbor awards, and more. Erica Taylor, Suzanne’s daughter, calls the effort a “fulltime community improvement project”. “It is important to have a relationship with residents and continue to work to preserve manufactured home parks as affordable housing,” Erica Taylor said. “We always are working hard to make our communities a better place
to call home. Our residents really like living here and we want to give as much back as we can. We meet and confer with our residents and reinvest project revenues back into our communities.” Augusta’s model differs from the resident-owned community model. In a resident-owned community, the park is operated by a constituency of residents who serve on a governing board that oversees the operation from a legal and financial perspective, and can advise on mission-driven [ST1] operations. Augusta is overseen by a volunteer board and managed by third party professional management groups that specialize in manufactured housing. “It’s so technical, how you manage your property, with rents, human resources, how you participate in government-sponsored improvement projects. It’s hard,” Suzanne Taylor said. “Our residents are pleased that they don’t have to manage each others’ space. They rely on our team and our board.” Augusta must comply with government-imposed financial and affordability regulations that guaranty »
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long-term housing affordability. These regulations require Augusta Communities to maintain at a minimum 20% of each of its parks for low-income housing, but overlaying agreements bump that requirement much higher to nearly 90% in some projects.
‘Gateway to the Sequoias’ A somewhat recent acquisition for Augusta Communities has been rebranded from Mooney Grove to Rancho Robles, a community in Visalia, about 45 miles south of Fresno. “It’s a beautiful place with all of the services that make a great city,” Erica Taylor said. “Everyone in the community is really happy, and proud of what we’ve been able to do there, and we are too. “We have renovated the clubhouse, moved the office from clubhouse to a new model home, gated the entrances and added solar street lighting, installed new signage with its new name and branding, renovated older homes, installed new homes, applied for the gas conversion program, and have begun offering resident service programs,” Erica Taylor said.
54 | JULY / AUGUST 2021 EDITION
The replacement of homes has been aided by partnerships with other nonprofits, a blessing for an organization that lacks access to capital many for-profit organizations are finding from Wall Street and elsewhere. She said even with all of the recent changes at Rancho Robles, there are 30 cleared and ready sites awaiting new homes. Those new homes will be paid for by capital made available by the refinancing of other communities, which is one way the nonprofit housing organization expands its efforts. “We help individuals solve problems,” Suzanne Taylor said. “We work very hard to have strong relationships with our residents as well as our investors and our regulatory and funding partners. All of Augusta’s communities are in California, but the organization may move beyond the state in the future. “We don’t have any real geographic limitations from here,” Erica Taylor said. “Ideally, we’re looking to go from Texas west.” MHV
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Markets
INVESTING IN MANUFACTURED HOUSING REITS by Alex Pettee
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The research team at Hoya Capital Real Estate is excited to continue our quarterly column published in partnership with MHInsider to provide insight and commentary on publicly-traded manufactured housing stocks. Every quarter, we’ll publish an update to discuss the stock performance, earnings results, and major news and events reported by manufactured housing real estate investment trusts, or MH REITs.
Overview of MH REITs There are three U.S. exchange-listed Manufactured Housing REITs which collectively account for roughly $35 billion in market value: Equity Lifestyle (ELS), Sun Communities (SUI), UMH Properties (UMH). Additionally, newly-listed Flagship Communities (FLGMP) trades on the Toronto Stock exchange.
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Manufactured Housing REITs collectively own roughly 350,000 manufactured housing and RV sites across the United States with a portfolio skewed towards higher-end communities with a more “retiree-oriented” demographic than the all-ages community. Through a series of acquisitions, Equity Lifestyle and Sun Communities have recently expanded into boat marinas as well, while the smaller UMH Properties and newly-listed Flagship Communities focus on traditional manufactured housing communities. Manufactured housing REITs have emerged over the past decade from relative obscurity into several of the largest publicly-traded owners of real estate in the world. Beneficiaries of the lingering housing shortage across the United States resulting from a decade of underbuilding, manufactured housing REITs have been the single-best
slightly lagging the 23.7% gains from the broad-based Vanguard Real Estate ETF (VNQ), but beating the 16.5% returns from the S&P 500 (SPY). Consistent with the trends across the residential REIT industry over the past quarter, MH REITs significantly boosted their growth outlook over the last quarter, citing
any property sector since the dawn of the “Modern REIT Era” in the early 1990s. From an investment perspective, despite their high growth rates, MH REITs are a traditionally defensive and countercyclical sector due to the “sticky” nature of MH demand and cash flows. While these REITs are not known for their high dividend yields, these REITs have delivered some of the strongest rates of dividend growth of any REIT sector.
strong rental housing demand and substantial upward rent pressure. Same-store Net Operating Income (NOI) growth continues to accelerate following a brief pandemic-related slowdown as property-level growth is now expected to rise by nearly 7% for full-year 2021. Growth in funds from operations – the earnings per share “equivalent” for REITs – is driven by the combination of same-store “organic” growth and by external growth through acquisitions and new development. Forward guidance over the past quarter was particularly impressive as ELS and SUI project growth in Funds From Operations (FFO) of nearly 14% this year – which would surely be one of the strongest growth rates in the REIT sector. Utilizing a strong cost of equity capital, these REITs have continued to grow externally by adding units to existing sites and by growing via acquisitions and site »
Second Quarter 2021 MH REITs Performance MH REITs were under pressure earlier this year by the ‘REIT Reopening Rotation,’ but this underperformance didn’t last long as MH REITs have been one of the best-performing sectors since the start of the second quarter. MH REITs are now higher by 21.8% this year,
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performing REIT sector since the start of 2010, delivering an incredible 22% annual compound total returns from 2010 through 2020. Manufactured housing REITs outperformed the broadbased Equity REIT Index for a remarkable eighth-straight year in 2020, the longest streak of outperformance for
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expansions. MH REITs acquired more than $1.5 billion worth of properties over the last year, largely in one-off acquisitions while disposing of just $10 million in assets. The most significant deal in 2020 was Sun Communities’ $2.1B purchase of Safe Harbor Marinas, which owns and operates 101 institutional-quality boat marinas.
Manufactured Housing Industry Data Points MH REITs’ amplified focus on analogous asset classes RV parks and marinas - was perfectly-timed, providing an added external growth tailwind. “Work-From-Anywhere” has fueled soaring RV, boat, and vacation home sales. The RV Industry Association expects RV wholesale shipments to climb to their highest historical total ever. While the RV industry has faced similar supply chain issues as traditional homebuilders, the RVIA sees shipments rising to 576k units in 2021, which would be a 14.1% gain over the current comparable record high of 504,600 units in 2017. The National Marine Manufacturers Association, meanwhile, reported that powerboat sales are also poised to set record-highs this year despite inventory levels that
are “the leanest they’ve ever been.” With SUI’s major investment in Safe Harbor Marinas, these MH REITs are now the two largest owners of marinas in the United States, an asset class with nearly identical fundamental characteristics as their large portfolio of RV parks. Marinas offer substantial operating parallels to the company’s RV business and that there are roughly 4,500 marinas in the US, of which 500 would be considered “institutional quality.” Earlier this year, ELS also expanded its marina portfolio with a purchase of 11 marinas, containing 3,986 slips, for $262.0 million. Low supply and strong demand have driven stellar fundamental performance for MH REITs over the past half-decade, and the MH sector continues to deliver sector-leading NOI and FFO growth. Consistent with the trends across the residential REIT sectors over the past quarter MH REITs significantly raised their growth outlook, citing strong rental housing demand and substantial upward rent pressure. While MH REIT valuation are now back towards the top-end of their historical range following double-digit returns over the last quarter, don’t » MHINSIDER.COM | 59
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MH REITs: Terms Defined FFO (Funds From Operations): The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT’s net income, excluding gains or losses from sales of property and adding back real estate depreciation. AFFO (Adjusted Funds From Operations): A non-standardized measurement of recurring/normalized FFO after deducting capital improvement funding and adjusting for “straight line” rents. NOI (Net Operating Income): Typically reported on a “same-store” comparable basis, NOI is a calculation used to analyze the property-level profitability of real estate portfolios. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.
Hoya Capital Disclosures I am/we are long ELS and SUI. I am not receiving compensation for it. It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. A complete discussion of important disclosures is available on our website www.HoyaCapital.com. MHV Alex Pettee, CFA, is the director of research at Hoya Capital Real Estate, a research-focused Registered Investment Advisor based in Rowayton, Conn, and founded with the mission of making real estate more accessible to all investors. Hoya is among the most widely-read and cited publishers of real estate commentary and research.
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bet against MH REITs, the perennial outperformers of the real estate sector and key beneficiaries of the persistent housing shortage across the United States.
Marketing
How LinkedIn Can Build Professional Authority, Corporate Brand by Beth Monicatti Blank
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Marketing
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LinkedIn is the world’s largest professional network with 756 million members in more than 200 countries and territories worldwide. It is an online tool for you or your business to show the world your professional persona, and has the ability to expand your awareness, credibility, and brand. The Microsoft-owned social media company wants you to succeed—follow their suggestions for improving your profile and business pages. But here’s some additional advice on succeeding:
Why Use It? • Thought Leadership/Credibility • Attracting Business • Recruiting • Search Visibility • Groups
Thought Leadership and Credibility Your personal page needs to be created and updated with careful consideration. Add a profile picture—make sure the photo looks professional. It doesn’t have to be taken by a professional photographer, but a selfie inside your car won't suffice. Update all the basic information. Details like your industry and contact information are key. Add work experience, your expertise, education, training, volunteering — anything that tells your story. This
is where you build your brand and highlight your accomplishments. Ask others for skill endorsements and recommendations that add to your worth. LinkedIn is a business resource. Make sure to always engage with professional etiquette when using the platform. It’s important to maintain a good reputation. Personal opinions, including politics, religion, and rumors should not be shared.
Start Making Your Connections! You can invite anyone to connect. At a networking event? Consider reaching out to all your new contacts through LinkedIn. The online platform will always give you reminders and suggestions to find additional connections. Put yourself out there and find meaningful connections to increase visibility.
Attracting Business It's time to create your business page. Business pages with complete information get 30% more weekly views. Add your logo and a cover image that gives life and personality to your page. Your cover image could be a photo of your team, mission statement, anything that gives clarity to your company brand or story. Include your company description, specialties, industry, website and more. The more details you include, the more people will find and » MHINSIDER.COM | 63
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connect with your company. Use relevant terms and phrases that describe your organization’s mission and purpose (LinkedIn members can search by keywords). Grow your business page by inviting your personal connections to follow your business page. Posting content to your business page is necessary to keep engaging, educating and marketing to your potential customers. Use graphics as well as video and slide presentations, infographics, published articles, company news, team and staff testimonials, job postings and trends. Consult your team to discuss possible content to use on your page. Be careful not to use only sales related information. Consider creating a monthly calendar for your LinkedIn content.
Make sure you add the LinkedIn follow link to your website. It gives potential customers more education about you and your company and another way to connect. Also, consider adding a link to your business page in your email signature.
you can also assess candidates’ skill proficiency and be confident in their skills before reaching out. If you have open opportunities at your workplace, make sure they are always posted to your business page.
Search Visibility Recruiting Looking to hire your next company all-star on LinkedIn? Advanced search filters and keyword searches can make recruiting easier. You can refine your candidate search with 40+ filters, including location, job titles, companies, industries and more. Another great function is filtering for candidates that are “more likely to respond,” “open to work,” or have engaged with your company brand — all based on LinkedIn member signals. Through their LinkedIn profiles
LinkedIn company and personal pages show up very high in online searches. Google shows previews of up to 156 characters of your profile, so make sure your business page description leads with powerful, keyword-rich sentences.
Groups LinkedIn members can create or join groups to share and discuss industry topics. Consider how joining an industry or alumni group can help further your knowledge, expand your professional network and increase your credibility! To find groups, use the search bar on top of your profile page, pr search using industry terminology and find the search references to groups. You can also tell your connections what groups you recommend. MHV Beth Monicatti-Blank is the president of All Seasons Communications in Romeo, Mich. She handles all agency operations including new business, account management, media buying and placement. She can be contacted at bmonicattiblank@allseasons communications.com.
FOR MORE INDUSTRY NEWS, VISIT OUR BLOG AT
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RESPONDING TO NEGATIVE ONLINE REVIEWS by Darren Krolewski
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They say that a complaint is a gift. But when it’s your business on the receiving end of a negative online review, appreciation usually is not the first emotion that comes to mind. In their classic 1996 work, authors Janelle Barlow and Claus Møller introduced the radical concept that a complaint should be perceived as valuable feedback to be welcomed with enthusiasm, rather than an irritation to be actively avoided. I am sure at the time “A Complaint is a Gift” was written, the authors couldn’t have imagined how online reviews would grow to shape consumer interactions with businesses. Today, online reviews are everywhere, and one has to go no further than Google, Facebook, Yelp or one of the countless other websites providing a forum for consumer feedback to view their impact. Reviews define reputations, influence consumer buying decisions, and often make the difference between business prosperity and failure. Gifts, if you will, are being given freely. More often than not the receiving organization doesn’t look very appreciative.
Take our industry, for example. A 2018 Google survey found that 93% of consumers begin their housing search online. Those numbers have only grown since. Yet knowing this, a simple internet search will still uncover manufactured home communities that are virtual repositories of unrestrained consumer generosity. Gifts, gifts, gifts, everywhere you look. And not a single word of acknowledgment in return. In other words, there are properties spending a sizable portion of their budget on trying to attract new residents, while completely ignoring that some of the first things that show up in a Google search are scores of unacknowledged comments detailing negative experiences. There’s no denying that bad reviews happen, even to the best of us. A single bad review isn’t the end of the world. Even having many of them isn’t a completely unrecoverable disaster. Whether good or bad, it’s how you respond to online reviews that really makes the difference. Who should respond? What should you say? And how can you avoid making things worse? Read on. »
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1. Remember That You’re Responding to the Public as Much as the Reviewer I don’t recall who said it, but one of the best tips I ever heard about responding to online reviews was that you’re replying for the benefit of the public, as much as the person who left the review. Perhaps even more so. You might craft the most expertly worded response in the history of social media, only to have the person who left the negative review drop off the face of the earth without the slightest reply. You’re not doing it for them. You’re not doing it for
Not just watching for them. Able to act on them. For example, a resident leaves a negative review. Your social media person becomes aware of it. Perhaps they even make others aware of it. But by the time an issue works its way up the chain to the person that can make a decision and back down again it’s blown up. A little issue has become a big one, and an opportunity to nip it in the bud is lost. Determine who will respond and what action they are empowered to take without further management involvement. Most situations are not unique. Come up with a library of fre-
While it may not be possible to resolve every situation to the mutual satisfaction of both parties, you can always gain valuable feedback that you can use to improve your business. -Darren Krolewski
you. You’re doing it for the next person that reads that review. That person who may very well be your next resident. It shows that you’re attentive. And if you care that much about what people say about you online, you probably pay attention to other things too. Like snow removal. Or potholes.
quent response templates. Marketing platform, HubSpot, has some great templates for responding to online reviews if you need some ideas. The point is, you should have a course of action for the most common feedback and a defined escalation process for those that require further management attention.
2. Have a Process for Response The business of property management is one built on preparedness. Natural disasters. Water issues. Resident relations. Responding to online reviews is no exception. One common mistake organizations make is not having someone empowered to respond to reviews.
3. Assess the Situation In the medical profession, there’s a process called triage in which the patient is assessed to determine the severity of the illness and the potential course of treatment. A good practice is to approach your online reviews in the same way. How urgent is the response? Devote
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your resources to the most severe situations first, such as emergency situations and those that have the potential for greater damage. How important is the response? Each situation referenced in a review requires varying degrees of resources to investigate and respond. Make sure the investment of time and energy is appropriate to the situation. Not every reply requires half a day of research and writing by your marketing team. A templated response may be sufficient. Save your resources for the situations that warrant it. Maintain a list of known “trolls”, those baiting obvious confrontation. You know who they are. The disgruntled former employee who keeps posting under fake profiles. The competitor pretending to be a previous resident. Participants in active legal proceedings. You get the gist. 4. Respond to Reviews Promptly When it comes to online reviews, time is of the essence. Managing your online reputation is all about being attentive, capturing valuable feedback and acting on it quickly. It goes without saying that you should endeavor to respond to reviews and comments as soon as possible. There are many tools, our own MH.Reviews online reputation management service among them, that will actively monitor your online reputation and alert you to new reviews as they are left in near real time. The sooner you engage, the greater your chances of reaching the consumer while they are still online, enabling you to resolve a potentially difficult situation more quickly. Better still, a timely response enables »
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you to limit online word of mouth before a disgruntled consumer takes their dissatisfaction on the road to multiple review websites. 5. Follow the Golden Rule Treat the reviewer the way you would like to be treated. In drafting your reply, set any emotions aside. While it’s tempting to confront an obvious mischaracterization or inaccuracy in your reply, show professionalism at all times. Always thank the customer for taking the time to share their feedback. Show empathy for their concerns. Take a personal, yet professional tone in your reply and avoid arguing with the reviewer. When possible, move the conversation offline, particularly if it is of a personal nature or involves the exchange of private contact information. But don’t make the mistake of looking like you’re avoiding a public forum either. Don’t be afraid to say that their feedback will require additional research, or that it is being escalated to management for a later reply. 6. Formulate Your Response Most of the time, a response to an online review will require additional research or correspondence with the reviewer. It is best practice to request personal contact details such as their phone number and email address by private message through the review platform or through your existing customer service channels. If a standard response is not appropriate, begin the process of researching and evaluating the reviewer’s concerns. Don’t forget to research the reviewer as well so you know with whom you’re corresponding. Are they 70 | JULY / AUGUST 2021 EDITION
the resident or are they a family member? If you’re in the wrong, do your best to try and make it right. If a situation has been satisfactorily resolved, don’t be afraid to reach out to the reviewer publicly to request an edit or update. This is a final step that is often overlooked. 7. Always Strive for the Best Possible Outcome In his book, “The 7 Habits of Highly Effective People,” author Stephen Covey suggested to “begin with the end in mind." Start with a clear vision of the desired outcome. Your goal in responding to online reviews should be to always strive for the best. While it may not be possible to resolve every situation to the mutual satisfaction of both parties, you can always gain valuable feedback that you can use to improve your business. It’s the way you handle feedback, both positive and negative, that earns you respect from the public. Not only will you avoid further escalation, you can potentially earn future business or perhaps even a referral from someone that saw how you handled an issue. 8. Accentuate the Positive Much of the best thought leadership on the subject of responding to online reviews focuses on negative reviews. And deservedly so. It’s certainly the area that usually requires the most attention. Yet don’t overlook that positive reviews are an even greater opportunity to show appreciation to a satisfied customer. Hopef ully you can earn more like them. Thank the consumer. Reference something specific they mentioned in their
review. If they shared how a team member went above and beyond to assist them, make sure you reference that individual in your response and acknowledge they are indeed a valued member of your team. If they asked a question as part of their feedback, make sure that you answer it. If they talk about how much they appreciate your pet policy, why not take the opportunity to remind them about the dog park you have on your property that is available for their use? Though it probably seemed like unconventional thinking at the time, Barlow and Møller had it right when they described a complaint as a gift. Often where there’s smoke, there’s fire. And no one wants fire. A negative online review can often be an indicator of serious operational, personnel or policy issues. Issues that are left unaddressed can cost a tremendous amount of damage. Sure, they may not always be expected. They may not even be welcome. But more often than not, a negative online review can really be a gift after all. And you know what they say about gifts. It’s the thought that counts. MHV Darren Krolewski is co-president and chief business development officer of MHVillage, the top website for manufactured homes, retailers, and communities, and leads efforts that generate 25 million annual visitors and home transactions of more than $3 billion.
FOR MORE INDUSTRY NEWS, VISIT OUR BLOG AT
MHINSIDER.COM
Advocacy
TECHNOLOGY IS A KEY COMPONENT AT THE MANUFACTURED HOUSING INSTITUTE by Ellen Savage
Advocacy
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The onset of the COVID-19 pandemic led all industries, including manufactured housing, to use technology in new ways. At the Manufactured Housing Institute, technology has brought new ways to engage our members and serve the industry. The pandemic posed immediate logistical and economic challenges to our members and the homeowners and residents they serve. It was imperative for MHI to advocate for our industry’s needs to ensure opportunities for growth, which posed challenges amid government shutdowns and social distancing. MHI launched a COVID-19 landing page on our website to support not only our members, but any company in the industry looking for resources to help guide their team members through the crisis. MHI worked with the White House, the U.S. Department of Housing and Urban Development, and Congress to ensure the inclusion of manufactured housing in federal economic stimulus packages. MHI successfully advocated, along with other housing industry leaders, to ensure residential construction, including factory-built housing, was included on the Department of Homeland Security’s essential workforce infrastructure list. All MHI’s advocacy work was done virtually. Although it was a new way of conducting business with lawmakers, their staffs, and government agencies, virtual advocacy has had benefits. MHI members and state association executives have been able to join MHI’s policy team in meetings on short notice and without having to travel. And on every Zoom call, MHI’s staff used virtual backgrounds showing manufactured homes and communities, resulting in policymakers not only hearing about manufactured homes, but seeing them as well.
While in-person meetings were canceled, MHI ensured industry members have opportunities to learn, network, and grow. One example is MHI’s webinar series, designed to share information and best practices across all aspects of the industry. Topics have included the federal eviction moratorium and emergency rental assistance, what retailers need to know about manufactured home financing, and how supply chain demands and labor shortages are impacting new manufactured home availability. Instead of hosting our traditional in-person Winter Meeting in 2021, MHI reformatted the event to bring members together virtually to discuss topics of interest across all industry segments. Attendees were able to participate in an open forum with their peers to ask questions, share strategies and learn from each other. The virtual format allowed for participation from those who would not have been able to attend an in-person meeting due to schedule, budget, or other constraints. We implemented monthly virtual meetups for state association executives. MHI shares its work at the federal level and across the industry, and state executives share details about opportunities and challenges in their states and best practices to address them, share tactics and help set priorities for MHI. Manufactured housing professionals were able to complete training and certification online through the Manufactured Housing Educational Institute. While MHEI offered online training before the pandemic started, in the past year it virtually trained almost 500 certified manufactured home installers, double the number of the previous year. MHEI now offers installer training courses in 20 states. In addition, MHEI provides training for HUD installers and inspectors who seek » MHINSIDER.COM | 73
Advocacy
certification. It also offers an Accredited Community
more photos and videos to support their submissions.
Manager designation and recently re-launched its Professional Housing Consultant designation with an updated training program to help retailers increase sales and improve the customer experience. All MHEI’s courses are offered virtually, which allows professionals to train when it is most convenient for them and at their own pace.
As of this writing, we are creating a video to showcase the award winners and highlight their accomplishments. MHI plans to use the video to announce the winners and will continue to use it throughout the year to recognize the best in class across our industry. Investment in technology continues to be a priority for MHI. We are investigating new software to streamline our website login and event registration processes so members receive quicker access to what they need. We plan to increase our use of photos and video to highlight the design and innovation of our members’ products. We know that the next best thing to touring manufactured homes in person is to see photos or video of our members’ homes and communities. Seeing the modern aesthetic, layouts, and amenities of today’s manufactured homes and communities helps dispel misconceptions and outdated perceptions about our industry and creates opportunities for manufactured housing to flourish. As the only national trade organization representing all segments of the factory-built housing industry, MHI is committed to providing our members with the tools they need to thrive. Technology is becoming increasingly critical to support our members, and MHI is prepared. MHV Ellen Savage is the vice president of member engagement at the Manufactured Housing Institute where she leads member communications, events, and education.
Tech Updates for Member Experience MHI is exploring how technology can help us further engage our members. We are beta-testing an interactive map which provides zoning information at the state and county level. We will make the map available to MHI members on our website and continuously update it to provide insight into the impact of zoning regulations on manufactured housing. We believe it will be a useful tool for companies in the industry and will also help illustrate to policymakers areas which are welcoming to the affordable housing opportunities provided by manufactured housing. MHI recently completed a technology assessment with a consultant to evaluate our current technology and create a roadmap to help us better serve our members. We have already implemented some enhancements. MHI’s website can now accept donations to our Political Action Committee, which supports our policy efforts. We used a new software platform for the annual Excellence in Manufactured Housing Awards that simplified the submission and voting processes and allowed entrants to include
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M a 15 nag ,00 ing 0 P Ov ad er s!
15th Annual Manufactured Home Community Financing Handbook
Wells Fargo Commercial Real Estate — Manufactured Home Communities We are excited to announce the release of our 15th annual Manufactured Home Community Financing Handbook. What started as a niche sector has quickly grown over the years into the tremendous industry we are proud to be a part of today. To learn more, please visit wellsfargo.com/mhc, where you can download the latest version of our Handbook.
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Allen Legacy Photo Courtesy of Clayton Homes
What They Do For Fun... by George Allen, CPM Emeritus, MHM-Master
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Do you ever wonder what the celebrity names in manufactured housing do for fun? Here are answers for a couple dozen of them.
Hitting the Road The late Burt Dickman collected antique cars – his best one a 1920s era Cord ‘fresh from the factory’ prototype – complete with a century-old unopened tool kit. Invaluable! Not only that, adjacent to his spacious triple-section manufactured home, Burt constructed a steep 30-foot tall hill with a 50-foot long car tunnel running through it in one direction, and a sliding board tunnel in another direction. The first tunnel emptied onto a dirt road circling a two acre pond in his backyard, showcasing antique iron bridges across a couple streams. The second tunnel was his grandchildren’s slide escape from their bat cave, dumping them into the pond. And out in the middle of the pond was a 7 feet tall lighthouse with a light and fan combination that attracted nighttime flying insects to the light, where
they were blown downward onto the pond surface to feed the fish. Such was Burt — Korean War military veteran, real estate developer, and owner of land lease communities — plus being the former mayor of historic Auburn, Indiana. He will be inducted posthumously into the RV/MH Hall of Fame in Elkhart, Ind., on Monday, Aug. 16 2021. I’ll be there! Burt’s example motivated me to learn of hobbies and diversions practiced by other land lease community owners and operators, along with other friends in the manufactured housing business. Here's some of what I learned over the years: Everyone knows Don Westphal, landscape architect and consultant hailing from Rochester Hills, Mich. Don, too, is in the antique auto scene. He presently has three 1950s era MGs undergoing restoration, along with a 1939 Ford pickup truck. And charitably, Don is passionate about Leader Dogs for the Blind. Don was inducted into the RV/MH Hall of Fame in 2006. » MHINSIDER.COM | 77
Allen Legacy
MH Lending You Can Trust Since 1985 Manufactured Home Lending in Land-Leased Communities
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Kevin Clayton is yet another car enthusiast. He grew up around his father’s car lots in Tennessee that later became manufactured housing sales centers. So, it’s no surprise to learn he proudly owns a ’69 Camaro and ’69 Mustang. And whenever possible, he participates in track day events, driving a Mercedes GTR. Oh, and he plays tennis, pickleball, and enjoys dirt biking in his spare time. According to his autobiography, “Am I Being Too Subtle?”, Chicago-based Sam Zell enjoys motorcycle touring with a group of friends who call themselves Zell’s Angels. The “grave dancer” (his nickname) is also widely known for his pen and ink business-focused caricatures. Zell published “A Picture is Worth a Thousand Words” in 2004. One of Zell’s most famous drawings in manufactured housing circles is of him shaking an accountant by the neck and saying, ‘”For the last time. It’s not called a TRAILER!”
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Moving from wheeled vehicles to four-legged hobbies, we find Eugene and Sam Landy of REIT, UMH Properties, Inc. in New Jersey. They’ve long been into harness racing! That’s when a driver sits aboard a sulky,
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which is a cart harnessed behind a horse known as a trotter. Another big horse race fan was the late Howard Walker of ELS, Inc., who also enjoyed shooting clays with various shotguns. Biking, hiking, and camping are a triad enjoyed by friends in the business including Atlanta-based Spencer Roane, MHM, who has hiked the Appalachian Trail and along Orange Beach, Ala.
Sharon Niccum enjoys a similar regimen, with some photography on the side. And when we add boating to the mix, we pick up Nathan Smith, who plays in Florida and the Caribbean when not attending the Kentucky Derby.
Jacks of All Trades Perhaps the best-rounded hobby and sports enthusiast is Paul Bradley of ROC USA in Concord, N.H. As he puts it, his life revolves around three pillars: family, work and play. And when it comes to play, find him alpine skiing, as well as skiing in the backcountry during winter. Then comes tennis, golf, mountain biking, hiking and vegetable gardening – in spring, summer, and fall. Let’s take that one step further; as to whether we might have a hobby-Renaissance man (“someone who does all things”) in Michael Sullivan, CPM™, CEO of Newport Pacific Capital in Irvine, Calif. In a recent conversation, I learned Mike enjoys flying (while piloting his own aircraft), hunting, shooting, scuba diving, motorcycle riding, boating, and travel – and reading. Can’t be more eclectic than that!
Doing the Write Thing We have a fair share of writers and authors in various segments of the manufactured housing business. I already mentioned Sam Zell’s autobiography; there are also works by Jim Clayton, Mike Conlon, Al Schrader, and recently Jim Scoular. The late Kris Jensen, Sr., John Crean of Fleetwood fame, B.M. Vukovich, Harrell & Darrell Cohron (identical twins) and George Goldman have also penned autobiographies.
readers of the two J. Wiley & Sons-published classics, “Development, Marketing & Operation of Manufactured Home Communities” in 1992 and “How to Find, Buy, Manage & Sell a Manufactured Home Community” in 1994. Edward Hicks and the late David Alley co-authored the first title with me. The second was a collaborative effort involving a dozen manufactured housing professionals from throughout the U.S.
Good Sports Tim and Todd Newby are past and present CEOs of Newby Management in Florida. Todd is the hunter in our crowd, along with Bob Young of the Blair Group. Todd also enjoys the “three guns competition” requiring competence with a rifle, pistol, and shotgun. Tim, however, marches to
the beat of a different drummer. He’s a Master Woodworker, enjoys furniture building and often mentors young people in business. He and his wife Ann frequently hike, snow ski and tandem bike. They once biked from the Pacific Northwest to their home in Florida. I suppose the most versatile of our industry hobbyists is Matt Follett of FollettUSA, domiciled in Sacramento, Calif. He’s not only into SCUBA diving, but also oft trail downhill skiing via helicopter – popularly known as helicopter skiing or heli-skiing. And when that’s not enough fun, Matt hops on his road bike and competes in organized century rides. Speaking of athleticism, we have at least one avid triathloner in our midst – Andrew Keel, CEO of Keel Team Real Estate Investments. »
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Allen Legacy
In addition to biographies and autobiographies, former MHI executive Rick Robinson has written more than a dozen award-winning novels – and enjoys fly fishing when he can find the time. Long time land lease community owner and operator Charles Irion, of Phoenix, specializes in penning murder mysteries often occurring on mountain peaks. His latest, “Murdered By Gods,” is an excellent read. Chuck is also an accomplished artist in oils and watercolors. Then there’s Theodore “Ted” Boers, founder of Datacomp, who authored “Three Simple Rules”, a life guide for his growing children and others. He also penned “Demons of Poverty”, relating his sobering experiences in Haiti attempting to help its citizens. And I suppose I should remind
Allen Legacy
In November 2020, he completed the Ironman Florida competition. And as of this writing he was training for a spring half ironman event. And yes, he works for a living and has a growing family!
Leading in Business and Family How ’bout leading Bible studies online, homeschooling multiple nine children, and operating a family farm? Well, that describes what Katie Hauck (of Ken & Katie renown) spends her spare... no, quality time! What about Ken’s hobbies? Believe it or not, he’s starting and investing in new business enterprises in Tennessee and Illinois, where their land lease communities are located. What about some more unique hobby combinations? Greg Pardieck runs a large land lease community
in southern Indiana where he’s also widely known for his classy Chateau de Pique Winery, in Seymour, and his all-terrain vehicle dealership - which donates ATV first prizes for MHI’s annual PAC Fund Raffles. Another community owner, Rick Rand, ACM, in Wisconsin, has a long history of managing and booking Midwest musicians and concerts, but spends most of his leisure time sailing on Lake Michigan and playing golf. And yours truly? During my Marine active duty years, I was big into outdoor handball and competitive weight lifting; then, racquetball (until I suffered a compound fracture of my left ankle) and jogging. Today? Walking, and reading at least one book a week, keeps me healthy and creative. I used to enjoy 35mm nature photography
until everything became digital and contrived. So, there you have it, a true potpourri of hobbies and diversions practiced by businessmen and women active in the manufactured housing industry and land-lease community real estate asset class. MHV George Allen has owned and fee-managed land-lease communities since 1978. He’s a former MHI Industry Person of the Year and a member of the RV/MH Hall of Fame. He has been designated a Certified Property Manager-Emeritus and a Manufactured Housing Manager-Master. He’s also a senior consultant and staff writer with EducateMHC. Allen can be reached at (317) 346-7156 and gfa7156@aol.com.
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