I am considering purchasing a mobile home park with 57 lots and 49 are occupied with park owned home tenants. When I convert the POHs to TOHs (rent to owns) what percentage of the tenants can I expect to lose? I have heard I could lose 30-40% occupancy.
It totally depends on how you approach your tenants and how you structure the conversion.
We’re experts in converting POHs to TOHs - reach out if I can be of any help.
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Thats why it is for sale. They can’t afford the maintenance and taxes. We lose 5% as a general rule. But we also do inspections prior to offering them the house to buy. Any MAJOR items we fix as part of the agreement to sign a new Lease Purchase. We do 30 day inspections to make sure there are no issues. If there are tenant damages, they get charged now instead of us paying for them. Of course pre-existing damages is always an issue unless the prior / current owner has a good Move-In inspection report signed by the tenant. That usually isn’t the case.
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