The Mobile Home Rent Credit Agreement only has an estimated purchase price of the home being rented…why does this agreement say that the Company can adjust this at any time? How can the tenant feel “safe” with a clause like that and why is it necessary to have that in there?Mark
If you make significant capital improvements to the home, it might be worth more. If something significant happens to the home, like a tree falling through it, it might be worth less. If the U.S. falls into hyper-inflation, and bread goes to $12 per loaf, it could be worth more just based on currency issues. The customer seems to understand this, and we have had no push back. But you don’t have to put it in there if you don’t want to – it’s a free country and nobody is an expert at any of these concepts yet, as they are too new and untested.
We’ve adopted F&D’s Rent Credit program at our parks. We’ve made two important changes:1. We specify the purchase price of the home exactly, and 2. Give tenants 100% credit for their home payment (I believe F&D’s boilerplate forms give 75% credit)We felt these changes make the contracts more fair to our tenants (no offense meant to F&D for the way they structure their RCs).In the event of extreme damage to the home, we are insured, and will not need to look to the tenant to pay for major repairs. If a tenant wanted an upgrade, we’d just write a new agreement to help them finance the improvement.In the event of hyper-inflation, our lot rents could increase to offset any ‘fixed’ purchase price.Your mileage may vary,-jl-
Very helpful, thanks Frank and Jefferson!Mark