I was thinking if it was possible to roll the rental and lot rent into a little higher “lot rent” than normal for the current park owned homes. I inherited a park with many park owned homes with the rental rate being arount $100-150 in addition to the lot rent of $285. I want to get away from the rentals. Is it alright to charge a $400 “lot rent” and hand the title over to the tenant? The $400 would be fixed for say two years before going back to a pre-determined lot rent.
That could work, but is a bit convoluted. You do run the risk of someone moving their house out next month after you give them title this month. We run our lot rent business (the real estate) in a separate LLC from our home rent business (the wheel estate). Tenants have leases with each and pay two separate rent checks. We always charge something for the house - one is as little as $75/month - from that LLC while they are buying it. That helps keep our books separate and better understand the profitability of the real estate vs. wheel estate.Your mileage may vary,-jl-