What to Do When You Inherit Property with a Mobile Home

Inheriting property with a mobile home on it creates an immediate decision point. The mobile home itself may have little value, especially if it's older or in poor condition, but the land underneath could be worth developing or selling.

Many people inherit these properties from parents or relatives who lived in the mobile home for years or decades. What once served as affordable housing for a family member now becomes a liability you need to address.

Unlike inheriting a traditional house that can be moved into or easily sold, a mobile home presents additional complications. Older units are challenging to sell, expensive to maintain, and may not generate sufficient rental income to justify their upkeep. The property might be in a rural area far from where you live, making management impractical. Or you might inherit multiple acres of land where the mobile home occupies only a small portion, and clearing it would open up development opportunities.

The choice you make depends on several factors, including the age and condition of the mobile home, local market demand, your financial goals, and how much time you can dedicate to managing the property. Here's what you need to know about your options.

Remove the Mobile Home

For many property owners, removing the mobile home is the best choice. This is especially true if the unit is from the 1970s or 1980s, structurally compromised, or requires extensive repairs to make it habitable. An empty lot is often easier to sell than one with an aging mobile home, and clearing the property can reduce your annual property taxes significantly.

Demolition typically costs between $3,000 and $10,000, depending on the size of the home, your location, and accessibility of the property. Single-wide mobile homes cost less to remove than double-wides. You'll need permits from your local building department, proper disconnection of utilities, including water, electricity, gas, and sewer or septic systems, and legal disposal of materials. Some counties and municipalities have specific requirements about asbestos testing and removal for units built before the mid-1980s, which can add $1,000 to $3,000 to your total cost.

The demolition process involves multiple steps. First, all utilities must be properly capped or disconnected by licensed professionals. Then the structure is dismantled, usually starting with the roof and working down. Axles and frames are removed, and materials are sorted for disposal or recycling. Metal components often have scrap value that contractors may deduct from your removal cost.

An alternative to paid demolition is donating the mobile home.

Nonprofit organizations like Banyan Mobile Home Removal accept mobile homes from 1980 or newer that are in moveable condition and meet certain structural standards. They handle the removal at no cost to you, and you may qualify for a tax deduction based on the appraised value of the home.

The organization transports the home to families in need of affordable housing. This option only works if your mobile home meets their age and condition requirements. Units must typically be structurally sound, have intact floors and roofs, and be free of major damage or mold issues.

After removal, you'll need to address the foundation or support system left behind. Concrete piers, blocks, or slab foundations need to be removed or broken up. Any excavated areas must be filled and graded properly to prevent settling or drainage issues.

Budget an additional $1,000 to $3,000 for site cleanup, depending on what's left behind and local requirements. Some property owners choose to have topsoil brought in and the area seeded to prepare it for future development or sale.

Sell the Mobile Home

If the mobile home is in decent condition and relatively modern, selling might generate some return. However, the market for used mobile homes is limited compared to traditional housing.

Units from the 1990s or newer in good repair find buyers more easily than older models. Homes built after 1976 meet HUD code standards, which makes them more desirable and easier to finance.

You can sell the mobile home with the land or separately. Selling with the land is simpler but may limit your buyer pool to those specifically looking for mobile home properties. Selling separately means finding a buyer who will pay to move it, which significantly narrows your options.

Moving a mobile home costs $3,000 to $15,000 depending on distance, size, and route complexity. Most buyers who purchase mobile homes want to buy them already situated on rented lots in mobile home parks rather than paying for relocation.

Before listing, you'll need to establish a realistic price. Older mobile homes depreciate unlike traditional houses. A 1980s single-wide in average condition might sell for $5,000 to $15,000, while a well-maintained 2000s double-wide could bring $20,000 to $50,000 or more. Get comparable sales data from mobile home dealers or online marketplaces to understand local market conditions.

Title status matters for the sale. Mobile homes can be titled as personal property like vehicles or as real property attached to land. Personal property titles transfer through your state's motor vehicle department, while real property titles go through standard real estate closing processes. Verify which applies to your inherited mobile home before attempting to sell. Some states require a title conversion process if the home has been on a permanent foundation for a certain period.

Expect the sales process to take longer than a traditional home sale. Mobile homes stay on the market an average of three to six months, sometimes longer for older units or in areas with limited demand. Marketing through mobile home-specific sites, local classifieds, and Facebook Marketplace typically generates more interest than traditional real estate listings.

Keep and Rent It

Renting the mobile home generates income but comes with ongoing responsibilities. You'll handle maintenance, insurance, tenant screening, lease agreements, and repairs. Mobile homes require more frequent maintenance than traditional houses, particularly for roof sealing, underbelly repairs, skirting replacement, and weatherproofing around windows and doors. The HVAC systems in mobile homes also tend to have shorter lifespans than those in traditional construction.

Before renting, ensure the unit meets local housing codes and safety standards. Many jurisdictions have specific requirements for rental properties including working smoke detectors, carbon monoxide detectors, proper egress windows, and functioning utilities. Older mobile homes may need updates to electrical systems that don't meet current codes, plumbing with outdated materials, or structural supports that have weakened over time. A pre-rental inspection by a qualified inspector costs $300 to $500 and identifies issues you'll need to address.

Calculate whether rental income will exceed your costs. Monthly expenses include property taxes, insurance specifically for mobile homes which is typically higher than standard homeowner's insurance, maintenance reserves, potential HOA fees if in a mobile home park, and property management if you hire someone to handle day-to-day operations. Maintenance costs for mobile homes average 15-20% of rental income compared to 10-15% for traditional homes.

The rental market for mobile homes varies significantly by location. In rural areas and smaller cities, they're often in demand as affordable housing and can generate steady rental income. In areas with robust traditional rental markets, they compete poorly and may sit vacant. Research local rental rates for comparable mobile homes to project realistic income. Many mobile home rentals bring $400 to $900 per month depending on size, condition, and location.

Tenant quality can be a challenge. Mobile homes often attract renters with limited housing options, which may increase turnover and maintenance issues. Thorough tenant screening including credit checks, rental history verification, and employment confirmation helps minimize problems. Consider whether managing a mobile home rental fits your investment goals and risk tolerance.

Tax and Legal Considerations

Property taxes are based on the assessed value of your land and any structures. A mobile home increases your assessment and annual tax bill. The increase varies by county and the home's value, but removing an older mobile home can reduce property taxes by several hundred dollars annually. In some jurisdictions, mobile homes on permanent foundations are assessed as real property, while those on blocks or piers may be taxed separately as personal property.

If you donate a mobile home through a qualified 501(c)(3) nonprofit organization, you may claim a tax deduction equal to the home's fair market value. You'll need a professional appraisal and proper documentation from the charity. The deduction can only be claimed if you itemize deductions on your tax return. For homes valued over $5,000, you'll need a qualified appraisal and must file Form 8283 with your return. Consult a tax professional about how this affects your specific situation and whether the deduction provides meaningful benefit given your tax bracket and other deductions.

Inheritance tax implications vary by state. Some states impose inheritance or estate taxes on property transfers, though most apply only to larger estates. The cost basis for the property typically steps up to fair market value at the time of inheritance, which affects capital gains calculations if you later sell.

Title transfer requirements differ by state and by how the mobile home is classified. Mobile homes titled as vehicles need transfer through your state's motor vehicle department with a bill of sale and title certificate. Those classified as real property require a deed recorded with the county recorder's office. Contact your local county clerk or recorder to understand which process applies. Some states require a certificate from the tax assessor confirming all property taxes are paid before allowing title transfer.

If the mobile home was in a mobile home park, review the park's rules about ownership transfer and rental restrictions. Some parks require new owners to apply and be approved before taking possession. Others prohibit rentals entirely or limit rental duration. Park rules can significantly impact your options.

Making Your Decision

Your choice depends on the mobile home's age and condition, your financial situation, local market conditions, and your plans for the property. If you want to develop or sell the land for other uses, removal usually makes the most sense and is often required before you can obtain building permits for new construction.

If the unit is newer, well-maintained, and there's buyer demand in your area, selling could recoup some value and transfer the asset to someone who wants it.

Renting only works if the numbers justify the ongoing commitment and you're prepared to be a landlord. Run the calculations honestly including all costs and realistic vacancy rates. Many inherited mobile home rentals look profitable on paper but become money-losing headaches when maintenance reality sets in.

The decision doesn't need to be permanent. Some property owners rent temporarily while deciding on long-term plans or waiting for better market conditions. Others list for sale while considering removal if no buyer emerges. Evaluate your specific situation and move forward with the option that makes the most sense for you.

 

Published 10/09/25