Ohio Parks Renting/Leasing and MHRC

Received a notice from Ohio Manufactured Homes Commission that if we sell or rent/lease to own more than 5 homes within a 12 month rolling period we will need to obtain a dealer’s license. If we implement the MHRC program, does that preclude us from being under the “rent/lease” rule?

Thank you.

We have parks in OH (and other states). If you look at the Rent Credit agreement closely, you are really just Renting a home and lot. The terms of the lease are pure rental. This is not a sale nor a Lease to Own.

What you need to figure out is how many homes will be redeemed within a 12 month period - by this I mean that a Title will be transferred from you/park to tenant. If you think more than 5, then you may want to think about the license.

Also, you need to think how far down the road this will happen. Depending on how your structure your RC, this maybe several years down the road.

PS: VERY important point - DO NOT take a ‘Down Payment’. Don’t ever use that term whatsoever. Down payment is a mortgage term and refers to a specific asset which implies sale. The beauty of the RC is that it is not tied to any specific home.

I can’t tell you what to do, but in one park we will have close to 10 homes on RC and do not have a dealer’s license (yet). These are all rentals under the legal terms of the lease.

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If you have any interest in ever purchasing a new home it’s probably worth the hassle to just get licensed