Hi all, I've started looking into MHP's and came across a 15 unit place where all units are tenant-owned. I asked about leases and was told there were no leases. I was a little surprised. Is this common practice for this type of rental? If I were to purchase the property, what recourse would I have if the tenants didn't pay? I appreciate any feedback.
From a park's perspective that's the most desirable situation, 100% lot rent. This frees you from home maintenance, that's up to the home owner.
Same eviction scenario. Only you are also forcing the removal of their home. Not likely. Usually if there's financial stress they just disappear. Then you go through the counties process of abandonment reposession and you sell for a few $k cash, no terms to stay clear of Dodd Frank problems.
You want a park that has no home maintenance. Ideally city billed water, elec and sewer. But often septic. Never fool with sewage treatment plants and parks on their own well are soon going to be a royal pain with new EPA water testing regs coming out. Already in place in places like FL. IE several times a day chlorine testing etc.
It's best to check with the rules of your area concerning the eviction process via landlords and tenants specifically for manufactured homes where tenants are renting the land. Each area can have different laws and procedures. The best thing to do is follow the process in matters of eviction. Best of luck!
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