Florida Regulations

I’ve heard that one challenge to purchasing a MHP in Florida is that the cap rates are simply not as good because of the higher land value Sellers are looking for. But what about the the regulations Florida has put in place under Chapter 723 Florida Statutes. For example, in the case of rent increases, the statute says that:

“A committee, not to exceed five in number, designated by a majority of the affected mobile home owners or by the board of directors of the homeowners’ association, if applicable, and the park owner shall meet, at a mutually convenient time and place no later than 60 days before the effective date of the change to discuss the reasons for the increase in lot rental amount, reduction in services or utilities, or change in rules and regulations.”

The homeowners can request a second meeting, and then mediation, etc. It sounds like a lot of red tape . . . if the homeowners are organized. Does anyone have experience of how these rules play out in reality? Are there similar rules in other states, and this is just part of doing business?

We just pierced rent control in another state. It is a bunch of red tape, but there is a process, and in our case we prevailed. It takes more time, effort, and legal fees though. In fact, we retained a rent control expert attorney to assist in our rent increase process.

Thanks for your response. Knowing what you know now, would having to deal with rent control laws deter you from buying a park in a particular state?

I know you weren’t asking me, but no, I do not cross states off the list due to rent control. Although it can kill a deal if rents are way under market and there’s no way to raise them to market

Thank you . . . I’m asking everyone :slight_smile: It looks like there is a way in Florida, it is just tedious. Does anyone know if there a list of states available with similar rules?

No. I do not mind sorting through bureaucracy for a good deal, but if you don’t have the time, patience, or money to handle it, your opinion may differ.

Presently own and operate parks in Florida. Presently we buy only RV parks—yes there is a hassle in some counties and MH Parks are not high priorities for county officials needing space for NEW needed housing developments. 7 years ago we switched to RV parks exclusively and love that area for rates increase, high demand and quick removal of problems. If you have a NICE RV park for sale on a lake, we are buyers.