RTO owner now in prison - allow family to rent out or have to sell

8 months into first park ownership and classic situation, my RTO tenant who is 2 years into 12 year RTO contract, is now incarcerated. Family would like to know if they can keep and lease out or if they can “sell” it. The legal doc that was used is the Mobile home option to purchase that is provided as part of the bootcamp docs. I would prefer to have it sold to a new owner as I don’t think the family is prepared to be a “landlord” . The document includes a “Transfer” option where tenant could assign it to someone for $100 but not other language other than defaulting. The family has paid February rent, so I don’t consider them in default. am I correct in thinking I can take the house back over and re-sell to someone else and the tenant is out any amount they have paid thus far?

Nothing that has happened so far has invalidated the existing RTO agreement. If they are current on the rent, then they’ve done nothing wrong so far. If they bring someone new into the home – who is an adult – then they would have to pass your standard criminal/credit screening process. Additionally, if there is a provision in your lease or rules against sub-leasing, then that might preclude them from doing that. But just because the guy is in jail doesn’t mean you can jump into the situation without creating a lot of liability for yourself. The guy might get out of jail in two days time and then you’ve worried about nothing. I’d let a month pass, and see if they keep paying the rent and see if the guy is back out of jail. If they don’t pay the rent, then evict them, If they sublease the home – and it is allowable under your lease and rules – then do a criminal/credit check on the lessee. But don’t rush to judgement must because the tenant goes to jail – that happens all the time in a mobile home park and, for that matter, in Hollywood, too.