Title of the discussion sums it up. What are the reasons why we, as park owners, would like to know that about our tenants? The reason I’m asking is because I’m in the middle of repapering a park. I’ve included the Resident Info form as part of the Lease. Some of my tenants have asked why I would like to know that.
“As the landowner; should the homeowner die or become incapacitated, I would need to know who the lien holder is so as to contact them”…
Yes, scs has a good answer for the tenants.The “hidden” benefit to you is that piece of information helps you better assess risk. If there is a loan on the home, there is a fairly significant risk of repossession. A 40 lot park with loans on all the homes is far different than a 40 lot park with loans on none of the homes.
In addition knowing the monetarily obligations of your tenants places you in a better position to anticipate which tenants may have difficulty paying rent and ultimately require evicting. It allowes you to have some leverage over their personal financial management.
When a tenant of mine indicates they may have difficult making rent on time and I know they have a loan on their home I remind them that my rent payment comes ahead of any payments they may owe to the bank.
To add my. 2 cents, if they do default, you can contact the lender before it goes to auction and save the lot and hassle of replacing the home.
I have done this recently, paid 11k for a 30k home. I called the lender and was able to work out this deal with them. And rented it out quick.
Since I don’t mark up the home that much, if the New tenant make payments for 4-5 years they get a great deal on the home as well. Of course there is the condition that home cannot move.
All great responses. Thank you!