Here is probably too in depth of a response for the question but here we go…
Generally speaking , i think most operators will always prefer tenant owned homes to park owned homes. Generally speaking there will be less turnover , easier mgmt, less vacancy.
Your question on the abandoned homes is going to go to what the park looks like , its history, the market etc.
What Dominc says is the ideal situation. The tenant sells home, new person buys, all checks out. No lapse revenue. New approved occupant.
This is in a perfect world. And better markets im assuming.
Now there are some other variations to this. You buy the home and go to sell it, thats a whole other ball game… I would never choose to do this willingly. A many a mom and pop parks have ended up as POH parks with this mindset.
Now some people suck at marketing. Their home is not that nice . So whats going to happen? They go to sell the home and you risk getting a less than desirable. Again, you are in a better market, someone sees the opportunity, fixes it makes it better. Your risk is the guy that won’t care about it, they check out etc. Granted the home should never be “that bad” since you are keeping up with the community. But weaker markets , smaller pool of quality applicants. So what do you do ? Well you knock out 3 applicants because they aren’t qualified. The person is probably going to end up leaving you the gift of their home and now its yours to figure out any way. Then you go the decision tree , do you scrap it? bring in a new one? or do you seek to obtain title, repair, now you are in the POH business congratulations …
It happens its inevitable.
Right now i have a house the guy was supposed to sell , we get calls all the time for cheap houses . Dont have anything . I offered we can try and help him procure a buyer and get him to move out. So its within my interest for people to get someone to get a buyer. Because i want that new tenant to take over, fix it up etc.
We are pretty much doing a background check and then income and most will qualify on just a basic lot rent ( assuming the person is buying the home cash…) .
This will alot depend on your specific park, your specific market.
You just have to know the way the cookie will crumble in each scenario so you can weigh your options…
This is based on my experience.
And then i mentioned the history. The one you have to be careful of is where you had an operator go in and do a conversion of POH to TOH but your new owners are actually disguised and are actually renters. So this will have a completely different profile on turn over.
Long term resident owners though , in a well managed park, is what this business is about. You keep them happy, they take care of you.
Brandon always chimes in with a good comments about the weaker markets and your options being more limited. Good markets heal many ales.