Sublet trailers


#1

We just purchased park and old owner allowed a few people to sublet their homes. Moving forward we are no longer going to allow any more new sub leasing. What would you recommend on the ones that are already in play?

Allow the ones already in place to keep subletting their home as long as the tenant does not cause trouble and they keep paying? At some point I would like to see all owner occupied homes… any suggestions would be appreciated!


#2

I would determine what the tenancy laws are regarding notice to terminate. Your tenants that have sublet likely have leases with their tenants. If they are M2M you can advise them to give notice to non renew. If they are on term, which is probably unlikely , they will not be able to terminate till the end of their leases.
To be safe notify they must all give notice immediately to their tenants and see who comes back with reasons/excuses as to why they can not do as instructed. If is it anything other than having to comply with state landlord tenant regulations force them to terminate their tenants.
Worse case is if they refuse you serve the home owner with a eviction notice forcing them to remove their tenant and sell.
We banned sub letting years ago due to the fact that they were always the worst possible tenants imaginable and sub lease tenants made it extremely difficult to inforce community rules. Absentee owners could care less about community rules. Sublet tenants care even less.


#3

We do not allow subletters in our parks. With that said, when transitioning a new park, dont throw the baby out with the bathwater. You need to ask yourself a few questions.

  • How bad are these tenants
  • How many paying customers will I lose if this happens
  • Can I afford to absorb this loss
  • What is the likely and worst case scenario; will I end up taking back 10 crappy homes to rehab and resell
  • Do I have bigger issues to deal with Immediately

You can make one swift decision. Or, you can grant a time period to each person to transition. While there is policy involved in this, this is very much a business strategy decision.


#4

The sub-lessees should be your first ones to be offered your home purchase program. If they don’t want to be home owners or cannot be home owners do you really want them there anyway?