We just purchased a property where the prior owner has allowed a mobile home dealer to set up a model home (vinyl/shingle) as an office on one of the lots. It seems that the dealer has been given free lot rent in exchange for bringing in and selling homes in the park. However, I don’t believe he has sold any homes in the park in the past 2 or 3 years.
Anybody have experience with this scenario? Any suggestions on how to deal with this guy? Maybe discounted lot rent for him to keep the “office” in the park?
This is a nice park located in Michigan and has many doublewides. I’d like to continue filling vacant lots, but not sure how to approach this dealer.
Thanks!
Unless you have every lot rented and this is your last lot left, there’s really no necessity in charging lot rent for this office. However, you need to meet with him and see what it will take to get some homes coming in and sold. If he has abandoned the idea, then there’s no reason for the office to remain. If he’s just having trouble selling homes, then find out if there’s anything you can do to improve the situation, such as have the manager help sell them, or increase marketing, or even SPIF homes that he brings in. If the guy brings in even one home every two years, that would be comparable to paying you a giant rent in the form of additional park value from that one occupied lot.