I you takeover the park on the last day or first day of the month, how does that work as far as payments for that month.For example, if you takeover one of those days, tenants are going to be sending in their rent the 1st (hopefully). Do you send out letters prior to closing so that the checks are written to you (or your LLC), or do they go the previous owner and if so, how does that work? I hope that makes sense, it sounded much more clear in my head :-/
You are better off closing mid-month, as then the payments will be credited to you at closing on the pro-rations, and you have 15 days to instruct the tenants on how to pay the next month’s rent. If you close on the last day of the month, you will probably have people pay the old owner (he may even encourage it) and it is much more of a mess. If you do close on the first of the month, and you have your new manager ready to move into the office that day, have flyers ready to distribute on doors that day, then you’ll probably be OK because they will come in to the office or drop box to pay, and you’ll get it.
That makes sense, thank you Frank, will have to see how the cards play out as to either mid month or first with flyers at the ready!
As a Real Estate Broker I agree with Frank to close in the middle of the month. At the Real Estate Closing you will receive the remaining Rental Income for that Month and it will give you time to contact the Tenants with the new Mobile Home Park Name and the address to send the Rent for the next month.In South Carolina a New Owner of a MHP has 30 days to notify the Residents of the change in Ownership.http://www.scstatehouse.gov/code/t27c047.php’Article 7.Notification Of Sale Of Park And RezoningSection 27-47-610. Notification by new owner of change in ownership.If a park is sold but continues to operate as a park, the new owner shall notify residents of the change in ownership within thirty days after the date of closing of the sale.'We wish you the very best!
Thank you Kristin for your input as well!
Seems mid month is what we shall shoot for.