There are about 20 spaces with POHs in our low income, family park with almost 100 spaces in the Midwest. Vacancy rate is below 15%, with the other spaces filled with either owners or contract buyers. This is my first MHP and closing occurred this past summer. These POHs have high turnover and very high maintenance/rehab costs upon loosing a customer who typically vacates with one or two months of past due payments on their account leaving the coach trashed. I assume this is not unusual and therefore my plan is to eliminate the straight rental option from the park.
It would be great (and much appreciated) if people would provide ideas on steps and related ideas/concerns to convert some or all of the existing renters to owners; such as rent-to-own, lease-to-own, or similar. How is the best way to sell this concept to the existing tenants? Problems to look for and things to avoid? Any key clauses to be included in the agreement?
Also, if anyone has a rent-to-own contract they would be willing share, please contact me at nwpears@hotmail.com
Thanks, – john