Mobile Home Park Security Deposit

1 Reply

We have a crazy situation going on and need some thoughts from those that may have experienced this (doubtful). I will do my best to make this as short as possible. We have a MHP with lot rent only. An Investor owned the majority of the units in our park. He gave us 30 days notice and paid lot rent for Oct. He sold the mobile homes and immediately wanted his security deposit back. I told him we have 30 days from "move out" to return the deposit. I spoke to the new owner and told him all the homes had to be moved by Oct 31 or he would have to sign a new lease. I kept tabs with the county to confirm when moving permits were issued. As of today, no permits were issued AND they have moved 2 homes off the property. Since they did not have permits to move the homes, I can't rent that spot to anyone else. They won't be able to get a moving permit, since on paper it looks like something is still on the lot. To add to it, they are leaving the lot a mess with blocks and other materials left behind. I notified the county and they placed a stop work order that will hopefully get these guys to fix everything. But in the mean time, today is the last day of the lease for the previous owner. I want to charge lot rent back to his security deposit for each day the lots are not empty, and charge back any clean up fees for trash left behind. I am not asking for legal advice, just curious if anyone out there would do the same.

@Christina Potosnak   Very interesting situation. Any updates? I have never thought about a situation like this before. 

What does your lease say about the uses of the security deposit, home movement, and home sales? Did the old owner fulfill all of his obligations with his lease? At first glance it looks like you would be using the old owners funds to pay for the mistakes of the new owner, with whom you don't have a written contract; unless there is verbiage in your lease about transferring responsibility upon sale. Similar to when you buy a rental with a tenant in it, you need to adhere to that agreement until it expires. I don't know if that is the same here. 

On the other hand, it is odd the old owner would sell the homes and not get cash from the buyer for the security deposit at closing.

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