I was doing a little research into MHP regs in my target states (mid-Atlantic) and came across this Delaware rent control provision:
79 Del. Laws, c. 63, § 1.;
§ 7042 Rent justification [For application of this section, see 79 Del. Laws, c. 304, § 7]
(a) A community owner may raise a homeowner’s rent for any and all 12-month periods governed by the rental agreement in an amount greater than the average annual increase of the Consumer Price Index For All Urban Consumers in the Philadelphia-Wilmington-Atlantic City area ("CPI-U’’) for the most recently available preceding 36- month period provided the community owner can demonstrate the increase is justified for the following conditions:
(1) The community owner, during the preceding 12-month period, has not been found in violation of any provision of this chapter that threatens the health or safety of the residents, visitors or guests that persists for more than 15 days, beginning from the day the community owner received notice of such violation; and
(2) The proposed rent increase is directly related to operating, maintaining or improving the manufactured home community, and justified by 1 or more factors listed under subsection © of this section.
Would this scare you off (being limited to rent increases of CPI-U 36-month average, which is 0.7% as of March) from owning a park in Delaware? Seems like if you buy a park with below market rents you may never be able to get them up to market. Thoughts?