I have been reading here about moving POH to credit option to get rid of all the upkeep/headaches it causes me…YUK!Where can I find a rent/credit option agreement?Do I just “tweak” a standard lease in my own verbage?-thanks for any help on this
I recommend you consult with your CPA and attorney on drawing up documents, and also the implication’s on your accounting. You should ‘war room’ the scenarios of selling the park so you are aware how the rent credits will affect sales and future owners. Rent credit programs, like financing create long term contracts that must be followed through with in the future. They create a ‘credit’ with a renter- an IOU of sorts the MHP must own up too down the road. The IOU is not secured by a home, so it is a unsecured liability owed to a paying tenant against a yet to be determined asset. Sort of like escrow accounts. At any rate, I would put the scenario for one home in your park on a spreadsheet, and adjust the numbers assuming they pay over say 5 years. Then, add a zero and you will see how the numbers play out with 10 homes. You can adjust for as many homes as you might ‘rent credit’. Plug the numbers into your financial projection program to see the effects. Also, figure in any accounting adjustments and remember to factor in the projected liability into your sales price.
Jim,Thanks for you expert advice on this.