Different Lot rates in the same park

mobile home university
1

I have a Mobile Home Park in NY state with half of the units are Tenant owned homes and the other half are Rented out as Park owned homes.

The lot rent is $300 per month. Market lot rent is approximately $400 per month.

When tenants move out, I’ve been doing some Renovations and selling them. I’ve sold four units so far at between $10,000and $15,000 each. All of the units are 70s and 80s models but in fairly good condition.

For these new tenants I have been charging $400 per month in lot rent.

Am I allowed to have half of my units paying $300 per month and the other half paying $400 per month? Will that be in issue?

I can never get the existing tenants up to market level because New York State restricts rent increases to 3%-6% per year.

Any comments are appreciated!

2

Based on what you’re saying the state regulations dictate that your lot rents can never be consistent between those that have had long tenure versus those paying market rates. All you can really do it increase the maximum 6% and go on down the road until those tenants move out or have cause for eviction.

3

With all the tenant-friendly laws in NY, I would consult an attorney.

4

Typically you may charge market rents to new customers. For existing customers you will have to follow the state rules. I would be surprised if there are rules regulating what you may charge new tenants unless you are zoned especially for low income housing or something.