Just purchased park, new leases?

Hi everyone,

Within the last week I purchased my first park. There is only one park owned home and 19 lots rented (100% capacity). There are 12 month leases currently in place which were all initiated in March of this year. Should I have new leases signed naming me as the lessor or just continue with the current ones until they run out. I’ve just distributed the park rule book naming my LLC as the owner as well as a welcome letter.

Looking forward to your thoughts…

You should first check with the State landlord tenant codes to determine if the leases follow the sale of the property or not.

I can’t even think of a state where you wouldn’t have to honor the current leases until they expire, but you may want to check; as Greg suggested. If you really wanted to I guess you can attempt to have the tenants sign your new lease, but you really can’t compel them to. It would have to be their choice. If you are raising the rent, then no one will likely sign the new lease until March.

You’ll want to get these lot renters on month to month leases after March though. Your POH should likely remain a year long lease in the form of rent credit or a straight rental.

Thank you for the good advice. I agree with switching over to a month to month lease for the lot rents. Adds a little freedom on my part. -Mike