I wanted to post this to help out where I can. So, feel free to ask questions, I’m an open book. I use this forum a lot, but rarely post. Everyone does business differently, but this is how I do it and will continue to do so. I bought my park in 2013, so I’ve been doing this for 10 years. What I do probably applies more to small investors who run/manage their own parks, because that is how I do it. I have 32 lots in total, with 4 vacancies. All TOH, except one I have as a rental. Although they just got a 60-day notice to buy it, or find a new place because I’m not renting anymore. They’ve been my tenant for 8 years, so I’m making them a heck of a deal (basically free). My park is in a highly desirable area, that has a lot of new construction going on around it. And I’m in the most highly sought after school district in the area. I average around $10,000/month gross, with average lot rent around $350, trash included in lot rent. I have cameras on my shops so I can view most of the property remotely from my cell phone. I have mostly older homes in the park and I don’t plan on bringing in new ones. My oldest one is a 1969, 2 bed, 1 bath. My newest is only a 2017 that a tenant traded in for. My second newest is a 1999, 3 bed, 2 bath. I do have gravel roads. I’d like to have paved roads, but can’t justify the cost when I’m doing pretty good with what I have. Also, I finally figured out how to easily maintain the roads and I have zero pothole issues. I do my own mowing for the common’s areas (takes about 2-3 hours to mow/weedeat with my 60" hustler. I make sure tenants stay on top of their yards. I do that by providing a mower/weedeater for them to use for free, as long as they sign a liability waiver. I also provide shovels, rakes, and other basic hand tools. So, I don’t accept any excuses for yards not being maintained. Tires also seem to appear everywhere, so I have a tire area for tenants to drop tires. Our County has a free dump once a year for tires, so I just haul them off each year. Yes, it takes time, but better than random tires popping up everywhere. I also have a nice dump trailer I let tenants use. I typically charge them $20 to dispose of bigger items. That basically pays for the minimum dump fee when I finish filling the trailer with my stuff.
I’m also posting my park rules. I just updated them in June 2023, but no matter how many times I read it, I’m always missing something. So, feel free to critique it all you want, because I’ll just take that info (good or bad) and modify it to improve myself and my park. I’m expecting some good responses, as well as the dick-headed ones. I’ll take them all because it’ll only improve my business. Not everyone does business the same way, but this forum keeps everyone going in the same direction. I just wanted to do my part to help out as well.
I like your management style. Sounds like a really solid operation you have going there. Your rulebook is good too. I’ve been trying to condense my 16 page hand book down to just a few extra pages in my standard lease but that project has taken a back seat to more pressing things. Really cool…thanks for sharing .
Condensing down was the hard part. As new situations happen, or tenants learn to twist a rule, or take advantage another way, I add or readjust the rules.
Would like to have a question for you: One of my TOH was on a property tax auction. It seems the tax lien overrides all other lines, such as my rental lien. Can I get back the rent from the new owner? Thanks
Yep, tax liens overrule everything, at least they do in Kansas and I’m sure they do almost everywhere else as well. In my opinion, you probably can’t charge the new owner the back-rent on the lot. And I don’t think you would want too either. None of it is their fault, so you would probably just start the tenant/landlord relationship on the wrong foot.
Thanks for your input. Normally how many months you will allow tenants to escape before serious action, such as asking them to go? Putting the outstanding rent in a lien is not a good idea and is costly.
Your community rules and general operation is nearly identical to mine. My only question is what is the reason for having rent due on the 7th rather than the 1st. Is it related to your residents income source.
Only differance likley is I converted my community to adult only 15 years ago. Primarily a retirement community now. Best dicission I ever made and eliminated 99% of all tenant issues.
When I first started in the rental property business back in 2007, I used to let tenants get behind on rent and they would sometimes owe me a couple of months’ worth of rent. That was a big mistake because I would still have to evict them, but was out a decent amount of money. I could take them to court for back-rent, but good luck finding them to have them served. I’ve learned if a tenant isn’t going to pay, you’re better off evicting them sooner than later. So, I give them until the 7th to pay rent, it’s late from the 8th-15th, and a 3-day eviction notice is given on the 15th. On the 18th, I file the eviction. The only way I don’t file is if they have a legitimate excuse (which they have to prove to me). Job hopping, quitting a job, bank issues, check was short,… excuses don’t fly. In the hospital, death in the family are the type of excuses I’ll accept. I then give them until the end of the month to pay rent in full with late fee. I never let it extend to the next month. Also, you have to enforce late fees every month. Some landlords like to have a really high late fee to try and eliminate tenants from paying late. I like charging a decent late fee ($25) to increase my revenue. I average $100-$150/month in late fees. But, I do not budge from the dates I set out for rent due, late fees, and eviction notice. When the tenants complain they don’t have rent, I tell them to borrow from someone else, because it won’t be from me. And all of a sudden, 99% of the time they have/find rent once they get a 3-day eviction notice. So don’t budge, fully enforce the rules (unless they have a real legitimate excuse and can prove it).
I used to have rent due on the 1st and was strict about it. But since mine are all tenant owned, I decided to loosen that up a little bit. I always had a lot of tenants saying they get paid on the 3rd, or 5th, or first Friday of the month,… So I decided to have rent due on the 7th. So, all seven days of the week are incorporated in that. I also chose the 14th at Midnight for the end of the late fee period. On the 15th, a 3-day eviction notice is put on their door. Those deadlines are in my lot rental agreement. So, that gives them 14 days (two weeks) to get rent/late fee paid before they get an eviction notice. So, no matter if they get paid weekly, or every other week, they have been paid within that time period, so it’s just a matter of whether they decided to pay rent or not with it. I only chose this method with my tenant owned homes. When I was renting properties, I kept it due on the 1st of the month because renters like to just bail more often. Tenant owned homes obviously have more skin in the game and typically won’t just bail since they own the home, that’s why I relaxed it to better fit everyone.
Hi Justin, appreciate your valuable input. I am doing exactly what you did in 2007.
What happens if the TOH owner does not pay rent after being evicted in the worst case? The empty house does not contribute to the revenue. I guess taking possession of the house might be the solution!? How long in time, what are the steps, and how much cost is involved to get possession of the house, assuming I cannot buy it from the previous owner at a reasonable price?
In another worse scenario, assuming the TOH owner has not paid the property tax for a long time. The government put the empty house in a tax sale. I assume, firstly, we cannot stop the winning bidder from getting possession of the house, and secondly, he/she will not pay the outstanding rent. How can we protect our interest in the house?
Interesting approach on date rent is due and late. It also is dependant somewhat on your landlord tenant regulations I suppose.
My residents rent is due on the 1st and late at midnite. I am permited to file for eviction immediatly and I do if I believe there is a ligitimate issue in paying their rent. The process here to evict can take 6 months or longer so it is imparative to apply immediatly then retract if necessary.
All my tenants provide post dated checks for the year or pay monthly by e- transfer. My residents are extreamly well trained and never pay late intentionally. Sometimes s**t happens, for example, this month one of the postdated checks I recieved last December was not signed which was my mistake for not catching it. Not my residents fault really.
PmKam. IN your examples involving TOHs when you evict you are also evicting the home from your property which the owner will have already planed to remove or will want to sell it in place. If they sell it you simply do not approve any new buyer until back rent is paid. If the new buyer is not allowed to live in the home in the park back rent will likley get paid quickly.
As the park owner you always have final approval and if a new buyer tries to move in without your approval you can either evict or much easier have them charged with trespassing.on your property.
If you evict the TOH owner, they most likely won’t pay rent. I would definitely try to buy it from them for a good deal, but make sure they have the title. Another option is to wait it out and get a quiet title for it being abandoned. Check your state laws on all that though. The home won’t be making any money while it sits there. And in my opinion, the only person you’d be able to collect anything from would be the tenant you evicted.
Really nothing you can do when it’s a tax lien situation. I doubt you can hold it against the new owner, but not 100% sure on that. However, if the new owner was trying to move it out of the park, then I would definitely try and hold them to pay for back-rent before it can be moved. I’ve never run into that situation, so not really sure.
Our evictions take around 2 weeks, and is very landlord friendly. All I have to do is post a 3-day notice. If they haven’t paid by the deadline, I forward the 3-day notice and a copy of the lease to the eviction attorney. Cost me $200 and I don’t even have to show up to court. I would definitely start the process as soon as possible if it were a 6-month process.
Greg, asking the “potential/new” owner to pay the back rent before the approval is an interesting strategy. I guess it works during the pending stage of the house sale, the buyer and seller are keen to work it out before the close. It is however, I am not sure in a situation where a buyer closed the deal without notice of outstanding rent. If I do not approve his/her entry it damages my ongoing revenue as well. Do you have any advice?
JustinWes, combine both yours and Greg’s scenarios listed above, should I approve the tax lien winner to move in (start paying the rent) before he/she pays back the outstanding amount? Say, for example, we insist on the outstanding payment and an agreement cannot be reached. If he/she decides to move out of the house, how can we stop it?
It’s up to you. I’ve been known to forgive and forget if I’m confident I’m getting a high quality, long term resident. Sometimes it’s the cost of doing business. Everyone has their own thresholds.