I have a run down park in a nice area that I’ve been working on turned around (located in a large metro with SFH houses nearby selling for $200k)
Most of the resident owned homes are 1960s-80s models, some of which look like junk.
We’ve been vinyl siding all park owned homes, and I’m now considering changing the park rules that every home in the park has to be vinyl sided. In order to help the residents with this, we’d offer zero interest financing, where the park will pay for the install, then bill them back just $50-$75 a month until repaid.
Has anyone tried anything like this before? I know it would be a firestorm with major pushback from some of the residents, but I really want to upgrade the aesthetics of the park to the full potential I’m having trouble figuring out other ways. If I just targeted the homes on corners or with high visibility it would potentially be discriminatory.
I’d really question if you have the authority or ability to be able to do this… If its solely aesthetic and not mandated by a regulatory body or hazard ( i.e. home has no skirting and its a municipal ordinance )
If you think its going to be a whopping value add, i would pick up the tab on it.
I have previously for skirting a home, offered for the tenant to handle it in exchange for lot rent credit upon completion. You might also consider doing a subsidized install ( i.e. tenant is on board for paying 1000 while you pay 1000 or something. Present as a chance for them to update their home. Id make sure there wont be an issue by putting siding over siding as well (i.e. moisture retention)
Simply change your community rules and mandate that all homes must have vinyl siding by a given date (year). As a example Sept 2018. Along with the rule change offer your 0 interest loans.
Your other option is to require vinyl siding be installed at time of sale of home. This however could take decades to accomplish.
As the community owner you have 100% control over the exterior appearance of all homes and the lots.
Id really question the legality of this and what Greg is stating…
You own the community. The tenant owns their home… Say you decide every tenant needs brick skirting , and a 12x12 deck? Why not do that as well to spiff it up?
I am far from being sure that this is absolutely the case, but id venture to say if this came to a court , you would be found wrong.
I have seen this done on condo complexes but that is an ownership in which you have an undivided interest in the common areas and things can be voted on .
Id also add i feel this is morally unfair. Often times parks have low income people. You essentially want them to incur an expense for something that you feel will result in your gain.
Greg, if I’m not mistaken, your parks are not in the USA correct?
I am not in the US.
What you need t do is study your state landlord tenant regulations.
The fact is that a community owner does have the right to set the standards of appearance for the community. Everything I have heard regarding US communities is that the owners have the authority to force tenants to install and maintain skirting. If this is the case then there is no limit to the authority a landlord/community owner has over the entire upkeep of the exterior of a tenants home.
Low income tenants or not the community owner has the full authority to determine and inforce community standards.
I am certain we have all heard about turn around parks. They can not be turned around if the owner has no authority over the condition and upkeep of the exterior of tenants homes.
I’ve been paying around $750 labor and $1250 materials. Going with a fancier contractor would cost much more in labor.
I’m not an attorney, but if parks can force a tenant to paint their home (which is definitely okay) it doesn’t seem like much of a stretch to force them to side their home in vinyl.
I’m less concerned with the legal aspect than the headache and brain damage. I imagine I’d have to issue a non renewal of lease and possibly initiate eviction against some residents to get them to sign up.
All you need to do is add it to your community rules that all residents must maintain the exterior of their homes, decks, porches, out buildings and the lot to the standard of the community at the community owners discretion.
My gut says the community owners set the condition of the lease (community rules). If tenants don’t like the rules they have the option to live elsewhere.