Leasing Pads to MH Dealers

How does it typically work for MH dealers who seek to place new homes on vacant pads in an established park? Do they pay rent from day 1 or only when they sell the home to a resident who will then begin paying lot rent?

Also, short of getting a MH dealers license, is it possible to get paid a commission from the MH dealer for steering a prospective buyer? Possibly by forming a joint venture to sell homes at the park?

I am looking at an asset in the mid-atlantic area which will have 11 vacancies and would like to go the new homes from a dealer route but also maximize revenue.

Thank you for your help,


Banks (for repos) and mobile home dealers are becoming more creative and engaging the mobile home park owner in many areas of the country. I have seen several mobile home park owners allow the refurbished “ready to move” in repo or new home being placed in their park and allowing 90 days+ of free lot rent. We are currently doing this in one of our parks.

I know on the repo side, several banks have paid 10%-20% bonus to the mobile home park owner. It is almost as if the mobile home park owner has their own mini used consignment lot. I think that the commission is paid as a bonus to avoid issues of not having a license.


In MD it has worked for us everytime. We have sold 4 DWs and 2 SWs in the last 6 months. I started with one dealer then two. I let them set the homes, take care of all the decks, landscaping and the homes are sold before they get them completely setup. The last new 16 x 80 was sold before the dealer had time to choose the colors. We just took delivery of a home on our last empty lot. To answer your question is “YES” Give the dealer 3-4 months free lot rent, work a deal for you or your manager for commissions, you’ll get a new home in your park and you will be soon getting lot rent for that empty space that has been setting empty for years. JMHO, Good Luck Terry

Does anyone know dealers or banks in the pa area that do this? Thanks

Thank you for your responses.

Dom - I am in Eastern PA and will let you know if I have any success.