Third-Party Management

Hiring an external company to manage day-to-day park operations, typically for 5–10% of revenue.

Third-party management is the arrangement where an operator hires an external property management firm to handle day-to-day operations of a park or portfolio. The management fee is typically 5 to 10 percent of effective gross income, plus reimbursable expenses for on-site staff. Third-party management works best for owners who live more than two hours from the park, lack operational expertise, or have small portfolios where a single dedicated manager isn't justified by economics. The trade-off is reduced operational control and a slight cap-rate premium because investors view third-party-managed assets as marginally riskier.

Related Terms

On-Site Manager

A park employee who lives at the park and handles day-to-day operations and resident interactions.
Self-Management

When the park owner manages day-to-day operations directly, without a third-party firm.

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