In the process of purchasing a park. State law dictates that leases need to be honored by any new park owner when park is sold and also state that tenants must be given 90 days notice on rent increases. Seller’s leases state that owner has right to raise rates as end of lease. The way closing may come together we will have prior leases expiring and new leases from us as new owners but sooner than 90 days. Wondering if the prior signed leases will allow me to raise the rents and change utility terms immediately when they expire or if I have to take ownership and then give 90 days notice.
This is a very “state specific” question. In most states we operate in, there is no relation between the change of ownership and the enactment date of a rent increase, in which the current owner gave proper notice. However, in some states, such as California, I think you need far more than a 90 day advance notice, and the change of ownership may have a critical impact.
I would contact your state MHA and get their input or, better yet, get affirmation from a real estate attorney in that state. There’s no way that you want to make a mistake in this type of item, as your tenants will be more than happy to sue you if you so much as forget to insert one comma.
Like Frank said, my particular state MHA has been very helpful with legal questions.