Updated about 3 years ago on . Most recent reply
Reasons for Rent Abatement?
A mobile home park I'm looking at has rent abatement of around 3% of the lot rental income on the T12 (tapering off to around 1.6% in the last few months).
What are some common reasons for rent abatement in parks and does it impact your Due Diligence at all?
What are some common reasons for rent abatement in parks and does it impact your Due Diligence at all?
Most Popular Reply
This would be a big red flag for me. Why are they giving it to the residents, for how long? I would have our attorney review the terms closely. I would be looking to understand if these would need to be offered to new residents moving in for the future or if this was a one time situation. Was it voluntary or mandated? What state is this in?