MHP Utility Recovery Calculator

Utility recovery in MHPs improves NOI by 10–25%; varies by submetering vs flat rates.

Lot count

Monthly utility cost / lot

Recovery rate %

Submeter install / lot

Annual recovery

$130,050

Submeter install total

$75,000

Payback (months)

7 mo

How the math works

Recovery = utility cost × recovery %. Payback = submeter install / annual recovery.

150 × $85 × 12 × 85% = $130,050/yr. Submeter install $75k. Payback 6.9 months.

How to Use

Enter lot count.
Enter monthly utility cost / lot.
Enter recovery rate %.
Enter submeter install / lot.
Read annual recovery.

Frequently Asked Questions

MHP utility recovery models?

Submetered (water, electric): direct bill-back to tenant. Highest recovery, common in Sun Belt. Flat-rate water: park pays bill, charges fixed monthly amount. Lower recovery, simpler. Master-metered + RUBS: utility ratio billing system, allocated by formula. Common with electricity. Park-paid + included in lot rent: simplest, lowest NOI yield. Recovery: 75–95% with submetering, 30–60% with flat-rate. Investment: submetering $300–800/lot one-time.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.