So I worked through this last year, reading everything, and noticed some new stuff when re-reading to deal with naughty tenants… I thought I was doing good actually getting a lease out (a first for the park, apparently), the document you’re required to give tenants (http://www.idph.state.il.us/envhealth/pdf/MH_LivingMHC.pdf) but of course there is more that I should have done and I missed it.Is everyone complying with all these little bits and pieces? As I become a hardass I feel like I must dot i’s and cross t’s. http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2209&ChapterID=62 Sec. 6.5. Disclosure. A park owner must disclose in writing the following with every lease or sale and upon renewal of a lease of a mobile home or lot in a mobile home park: (1) the rent charged for the mobile home or lot in the past 5 years; (2) the park owner’s responsibilities with respect to the mobile home or lot; (3) information regarding any fees imposed in addition to the base rent; (4) information regarding late payments; (5) information regarding any privilege tax that is applicable; (6) information regarding security deposits, including the right to the return of security deposits and interest as provided in Section 18 of this Act; and (7) information on a 3-year rent increase projection which includes the 2 years of the lease and the year immediately following. The basis for such rent increases may be a fixed amount, a “not to exceed” amount, a formula, an applicable index, or a combination of these methodologies as elected by the park owner. These increases may be in addition to all the non-controllable expenses including, but not limited to, property taxes, government assessments, utilities, and insurance.My lease and giving out the earlier linked PDF covers most, but what about these two: (1) the rent charged for the mobile home or lot in the past 5 years; (7) information on a 3-year rent increase projection which includes the 2 years of the lease and the year immediately following. I’ve owned the park for less than 2 years, I could probably talk to a few of my good tenants and get their best recollection of past lot rent info. The 3-year increase projection is a little daunting. I’m having a hard time committing to what I want to do beyond September 2015. I can always stick to the “not to exceed” part and maybe quote $20/year for year 1, up to $30 a year for year 2, and maybe $40 a year for year 3. That would put me at $220. Competition parks are at $260 currently and I like mine better. Just wondering if everyone does comply with these and any shortcuts the experienced owners have?
Lori, first of all way to go on your transformation of your Mobile Home Park! You had indicated in a previous thread that you had purchased a property that you loved that just happened to have a Mobile Home Park on a portion of it.I am proud of all you have done! You deserve a pat on the back!Our South Carolina Mobile Home Park Leases are 7 pages long. We include everything that you had mentioned with the exception of your (1) and (7). South Carolina does not have those requirements.Speaking to your good Tenants to find out the past Lot Rent sounds like a great plan. Hopefully, between everyone’s memory the past 5 years numbers will all be the same.As for your 3 year increase projection I like the “not to exceed” part.Since your Competition Parks are at $260 and your Year 3 only takes you to $220, I might bump up your yearly increases. Since you will include the “not to exceed” part, you do not necessarily have to go up that high (it just give you the opportunity to if need be).Lori, way to go on Managing your ‘Bonus Mobile Home Park’ :-).We wish you the very best!