So say we require $2000 down for a home being sold on Rent Credit and the scenario looks like this:
Total Payment for home: $575 per month, total up front out of pocket as follows:
Home Rent: $350
Home Sec Deposit: $350
Lot Rent: $225
Lot Sec Deposit: $225
The total is: $1150
Leaving $850 to be applied as:
Additional non refundable deposit transferable as Rent Credits at the end of the term?
Rent Credits purchased up front to be used at the end of the term?
Other? If so, what?
I will say the amount of paperwork for this is a bit exhausting. It requires:
Park Lease Agreement
Home Rental Agreement
Rent Credit Agreement
Park Rules
Hows your experience and is there a better/simpler way?
The four forms are very simple but can be reduced by combining the community rules with the lot lease agreement into one document. Changes to the communities rules would then be an addendum to the lease.
The rest is unavoidable as you must legally separate the lot rental application from the home rental as they are two separate legal entities. 30 minutes with the applicant can tie up all the lose ends.
All rent credits are the same - a tenant only have the option to use them once they accumulated enough to purchase the home. If they’re evicted for non-payment or any other reason then those credits are forfeited and cannot be used.
In addition to Greg’s comments why not combine the rent credit agreement and home rental agreement? Seems like those overlap and can be simplified into a single document.
Check other threads - and there are the templates available assuming you have purchased the MHU Home Study Course that map out all of this.
Many people apply the standard credit percentage (e.g. 75%) for all money put towards the home, including down payments. This is an uncomplicated model and easy for the Buyer to understand, resulting in a sale.
You should test and tweak for you and your market.