We are negotiating with a Lonnie dealer.
He is asking for 60 days grace period. But it is not clear when the 60 days grace should start.
Would you offer 60 days grace?
How does this clause sound…
In the event of a vacancy of a home owned by Mr X (Lonnie Dealer), the owner will give Mr X a lot rent grace period of 60 days starting on the 1st day of the month when lot rent is due, or as soon as the vacancy is filled, whichever occurs first.
The moment a tenant is in that home you should be collecting lot rent. Concessions like this are typically given when a Lonnie Dealer is making significant investment to remodel a run down home. If they fill the home with a tenant before the 60 days is up then a prorated lot rent should be charged at the next billing cycle. You will need to approve the tenant and their first day on the property per your usual rules.
If they are just moving a remodeled home in and renting it then I would either give them 30 days from the day the home enters your property - or nothing, especially for the first deal. If that one goes well then you can re-negotiate for future deals. If they cannot fill a ready to go home in 30 days then they’re not a very good real estate investor to begin with (assuming you’re in one of those 3 calls per day markets - yes selling can take longer). Same proration rules if they fill it before 30 days too.
If I had a community suitable for Lonnie dealers I would not negotiate with them. Rent is due every month regardless of whether they had a sub lease in place or not.
My opinion is you are doing them a favour to allow them to do business in your community and they take the risk. Lot rent is simply their cost of doing business and I see no reason to give them or any other home owner a break on rent. The Lonnie dealer is my tenant and they are treated the same as any other tenant.