There are about 100 renters who’ve rented for a while. Let’s say we’re implementing the rent-credit program in the gray area of the SAFE Act.
How do you convert the long-term renters to owners? What kind of turnover should I expect?
My idea is to wait until their contract is up for renewal and then write in the rent-credit agreement while keeping the total price they pay the same. The disadvantage is I have to maintain the park-owned homes in the meantime and deal with the turnover.
What do you think of this approach/what has your experience been in this regard?
I don’t see where a rent credit program helps you much. All it means is if someone stays for a long time, you hand over the title to the home. Perhaps a few renters will stay longer because of the program, but it does not return to you the capital you have in the home.
It is much better to sell outright, even it you self finance. There are ways of protecting yourself from Dodd Frank. This year I am going to put it to the test, but I believe you need to bump the rent rates up enough above what the loan payment would be to get them to sign the papers.
As I understand it–rent credit is that sort of Dodd Frank protection you’re talking about, right? It’s not a mortgage–which is why it works–but it’s a way for people to own any home in the park after some number of months.
What kind of turnover do you get when you try and sell the homes to the renters?
Did a lot of people move or stay? I could guess there would be a bit of both, some people can’t handle actually owning something and some would find it an extreme blessing.