We are doing due diligence on a park in Illinois, and to our dismay, we found out that Illinois requires a MHP owner to offer tenants a 24-month lease unless the tenants agree otherwise.
Most of the tenants in the park are on a 24-month lease agreement. The park currently pays for water. So, I assume that we will not be able to pass the water expense onto the tenants until their current leases run out?
Furthermore, I think that this 24-month lease law takes away many of the powers that MHP owners have in a month-to-month agreement.
Could you please comment on this law? What are the major disadvantages of buying a park in Illinois? I guess we should be particularly careful to buy a park in Illinois?