I am wondering how it work… If MH used to be POH and sell existing MH in park to tenant become (TOH) and you want to stay in park for some years and do you hold the title or putting sort of lien on title or something else I am not aware of it?
I am not sure if its legal to locked TOH in park forever because there issues with city which they said its grandfathered and once MH leaves the park it loses the grandfathered status. The city will never approve for replacement for new single wide MH.
State laws prevail, however, it’s common for owners selling POH to have a long term lot rent contract to provide some assurances that the home stays for a given duration. Check with your state MHA on best practices for where you operate.
You should separately seek legal counsel why the city is challenging your grandfathered usage. That does not sound right at all. The usage applies to the entire property and not each individual lot.
I see, I am still looking find Idaho state law more specific if there a such thing legal practices mobile home lock up in the park.
I often see on Craigslist, home sale books, newspaper etc I see some park owner post said “Home cannot be moved”, “This mobile home cannot leave the park” “Home permanently stay in park” “MH must stay in park” etc…
Yep, my city really hate it very much on single wide MHs and banned it for good but strangely they do allow it the double wide MHs sound like city is doing secretly weeding out the criminals or poorly people only could afford those single wide MH.
I am curious, if TOH do have own different Mobile Home Lot lease agreement?
We have a separate agreement for lot rent only versus lot + home rent. The main difference is it covers the specifics around what the tenant is responsible versus landlord and highlights the demarcation.
Your MHA should have some forms along these lines.
Thanks for quick reply! What’s MHA? its similar like IHA? http://www.idahohousingalliance.org/?body=forms ?
Manufactured Housing Association. That looks correct for you. See if their forms fit your needs.
I think its safe to say that if someone paid you a few thousand dollars for the mobile home and then turned around and paid a few thousand dollars to move the mobile home they probably would be buying a house not a mobile home. Not even these people would pay $5000 after they paid you $5000 to move across town to save $30 on their lot rent. These people don’t have that type of money usually.
I wouldn’t worry about it how to trap them. The economics of the deal is almost risk free for the seller.
Good point @Gator, I don’t think one of my MH 14x65 worthy at 5k or over right now… But maybe I think 2k value idk… Because of heavy rain damages, no kitchen, some ripped off the interior walls, busted water piping, etc needs major repairs. If new tenant challenged me want to take their MH out my park then fine and I won’t chain up it to my park but good luck if new tenant can move it safety without break something with MH on road to save few bucks at else space lot park. Only Cons is losing the grandfathered single wide MH in per lot. But double wide may make more difficulty for any tenant can afford to buy it and put on my park.
At one time we offered MH’s at our parks at two different prices; if it says at a lower price, if they want to move at a much higher price. You can also ask for right of first refusal as a park owner; when home comes up for sale and also if home owner decides to lower it more. On homes with loans to park owner; loan would have to be paid in full if moving. Really very few homes are being moved (like Gator says above) unless in south Texas park owners actually will pay for moving and also for 1 or 2 years pay no lot fees–very cut-throat market!!!
@carl I am glad not living in Texas state to give up some valuable rent spaces to beat other many MH parks. Good to know not too many people want to move it the mobile homes unless it’s rare case.
Do anyone park owner success sell somewhat dilapidated MH and new tenant actually take their pride serious fix it up and make it nice and liveable condition or use like trash ghetto in Detroit? I got one dilapidated MH not sure whats best option to demolish it or sell it cheap hoping new tenant would take good care it.
Adding decks, sheds, porches, car ports, awnings, add on’s, etc. all make the home more valuable where it sits, and harder to move. I add sheds and decks to all my homes, and encourage customers to put up car ports or other additions to their home. These tricks work well and improve your park as well.
Make the promise to keep the home in the park part of the consideration for the sale for all remaining park owned home sales. It is more difficult to draft a good sales agreement that binds the party they sell the home to, but it is possible. But at least for the foreseeable future all remaining park owned homes that are sold will stay there. Ultimately, if you cannot replace homes you have a larger problem and that is where you should be spending some time and legal fees.
Todd
Are tenants moving their homes out frequently really a big issue in your park? Are tenants selling or moving their homes due to increasing lot rents or lower lot rents in neighboring parks? Seems like too much expense even if there are not additons involved just to save $30 to $50 in lot rent.
Why would owners spent thousands fixing up their mobile home if it’s only registered as a vehicle (my state does this), and they can’t get home loans or own the land underneath?
The parks around here say when the home is put up for sale, the extras like decks and sheds the owner paid for cannot be part of the asking price. It’s all a separate price!
So if a potential buyer doesn’t want to purchase the deck or shed, one is totally out of luck, and has to leave all that behind. Total loss.
To me, it’s only worth it as an owner to fix an older home up only if one owns the land underneath. Certainly not a lot rental.