Land Lease Directly with a Sublessor and not the Mobile Home Owner?

mobile home university
1

Hey Everyone,

I am looking at a park that has a few Tenant Owned homes that are subleased and have the same “quirk.”

The Sublessors have a good history paying lot rent directly to the Park, but the Park Owner does not have any leases in place for these specific few - and has never seen or heard of the Owner of the mobile home since they acquired the park 5 years ago.

The concern is that these tenants could be glorified lot-rent-paying-squatters and the mobile home owner could decide to come back into the picture and claim some liability against the Park (though I cannot think of what liability exactly) - the Park has no visibility to the arrangement these Sublessors have with the mobile home owners.

I would hate to give notice to paying tenants just to take ownership of these homes, but seems like the current ways of working is not a common arrangement… My gut says check with a qualified attorney, and aim to formalize a Land Lease with the Sublessor before Closing. If they move out and the home is subsequently abandoned then the Lease will be in arrears and can take ownership through the State of Texas process.

Anyone have war stories to share like this, or recommendations how to cover myself as part of the feasibility period?

Thanks!

2

I make the home owners sign the lease agreement. And I send statements to the home owners wherever that is. I am not the rent collector for the home owners. I simply do not do business with their renters or acknowledge they have any right to be on my property as I don’t allow it in my lease.

Why not tell the renters that the home doesn’t have an active lease and needs to be removed from the park by the home owner unless the home owner signs a lease? In my state you have to give each home an initial 6 month lease if there was nothing in writing before and have the owner sign a notice. After that, the lease could be non-renewed and if not removed in 15 days becomes yours through abandoned property. If there is no lease now, seems like a legal battle ahead that would partially be your fault for not giving the home owner an initial lease option when you take over.

I have two homeowners that sublease to renters, and those are usually my homes where people throw out trash, etc. I take pictures of it and fine the home owner same as I would any other home and it’s their problem to collect more from their renters.