IL - Mobile home owners fear they may be priced out by rent hikes - MHU mention


#1

The management company that purchased Wilson’s, and 12 other parks in Champaign County, was RV Horizons, although it now operates under different names. David Reynolds is listed as President of RV Horizons on the mobile home park deeds, according to a review of property records by CU-CitizenAccess.

In February of 2018, Colorado-based RV Horizons sold its 12 mobile home parks in Champaign County to Mothership PropCo. David Reynolds was also listed as an agent on Mothership PropCo’s filings with the Colorado Secretary of State, indicating that Reynolds sold the properties to another company he was affiliated with for millions more than he had purchased the parks for, according to a CU-CitizenAccess review of county property sales.

The rent spikes inspired the two women, along with other manufactured home residents across Illinois who are part of a group called [Manufactured Housing Action], to advocate for lifting a 1997 ban on rent control in the state.

Illinois State Senator Mattie Hunter, a Democrat from Chicago, sponsored legislation that would lift the 1997 Rent Control Preemption Act. The measure would also establish elected rent control boards around the state who would be tasked with putting in place “regulations concerning rent for households of specified income levels, including restrictions on increasing rent-controlled amounts,” the bill states.


#2

If I owned 12 RV parks in Illinois I’d probably sell them too…


#3

60 years ago the farming communities were made of Mon and Pa ownership. In the past 40 years small farms disappeared and presently one government farmer is farming what was once farmed by over 30 farmers plus. The present farmer is totally controlled by the government, CIP, Reap, etc, how acres he plants and the support price for his crops her produces. Crop insurance is 45 % covered by taxpayers. With fewer park owners it will be VERY EASY to control and the poor people will demand and receive government payments for rent BUT our government will ENFORCE RENT CONTROL–Reynolds is a good person BUTT the desire to control many parks by one entity will make the change very easy. With the present socialist progressive in vogue it is probably being look at by Bernie S. right now!!!


#4

Hi Dominic, could you expand on this?


#5

Sure. It’s mainly a personal preference though. I’m not particular interested in RV parks as they are a significantly different business model than MHPs. Also, Illinois is a very blue state with negative population growth. The fact that there are high taxes, very tenant friendly laws(that doesn’t really make things easy for us), and a net migration out of the state are all good reasons for me to stay away.

But again, that’s just my personal preference.


#6

Nothing in the article (aside from company name) has anything to do with RVs…


#7

A side note, Florida has many parks that are now resident owned and will never?? be available to park owners (could that be more in vogue in the future). Illinois is really an area that needs to be watched carefully as well as California with a net lost of population, very high unsustainable debt, and very high taxes–these states tend to indicate what can fly since voters that potentially control elections there are less than middle class. People can now vote their pork barrel needs and have the middle class pay for it and politicians love that mentality (easily controlled). We have just got feed back from our yearly increase—very positive since they see and experience the improvements and have a very pleasant environment. Just raising the rents because the people can’t move and allowing the place to be nasty hurts the face of the park business for all–we need to be the best park owners possible so their experience is exceptional . I still say the large operators like Sam Zell and others will lead to government intervention for the poor and the smaller operators will take in on the chin (Ouch) and partially because of greed!!!


#8

Just looked up Illinois MHP laws. You weren’t kidding about them being tough!

Anyone with Illinois experience have suggestions on the 2 year lease requirement?


#9

I just googled around and it seems that tenants can waive that right if they want a shorter lease…


#10

" Leases within mobile home parks must be at least 2 years and in writing. The owner and tenant can agree to a shorter lease, but only after the 2-year lease has been offered."

I wonder if you can give the potential tenant an option of a 2 year lease, must be paid in full up front, or offer them a month-to-month?


#11

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2209&ChapterID=62

You have to offer it unless tenant waives the right. Many a tenants waive the right. Has to be signed off they acknowledge this.

Then on rent increases, you still have to comply with notice of 90 days. Then on a 2 year lease , you have to identify the rent increase from year 1 to year 2 specified in the initial lease.

This is the basics of it , you can readthe whole thing for the ins and outs but just because a tenant accepts a 2 year lease does not indicate that you are rate locking for this term.

Hope that clarifies some things on this topic.