Frank, Jefferson and other experts.
Do you require new leases in your parks every year even when tenants are on month to month terms.
If you do, do you get new leases for lot rent only or new lease also for rent credit, home rent, rto etc…
Thanks
Brian
We only require new leases if something internal to the lease has been updated. So- if we bump space rent- we will do that with a general notice, that pursuant to “x” in the lease we are bumping space rent… then we will follow that up with new leases.
We do both because some people just flat refuse to sign a new lease.
We do not use the rent credit program, we are a straight lease- then you have an option to buy or continue the lease operation. Because that lease has a term to it- 2, 3 or however many years, we do not get it resigned. It runs for its term, then it converts and we let it ride. The pricing is set in the lease, so we do not bother it. Now, of someone is just on a straight rent or lease- no option- we would update that paperwork as things change.
One thing we do not typically do is remove people from leases. Pretty common, someone will start as a couple, then one moves out and they want a new lease. We would them look at qualifying that one person. If a home sale of any type is involved, I would request something in writing by both parties.
No, if the law allows it, we leave all leases on a month-to-month term. However, we re-paper all leases and rules upon buying the park, so that everyone is on the same lease and rules, not the former owner’s (of course, we have to honor any existing lease until it expires). Check on the state laws regarding lease length with your state MHA. If you can go month-to-month, that’s by far the best, as it gives you greater flexibility to raise rents and to non-renew the leases of those who will not follow the park rules. But if the law dictates a longer length (some states give the tenant the option of a longer length, which they seldom agree to, for example) then you have to go by what the law demands.
It would depend on the particular state landlord/tenant regulations which every landlord should know as part of the proper operation of their business.
Many regulations provide flexibility but some do not. It is important that landlords have copies of these regulations in their offices (paper or computer) to refer to in order to answer tenant questions and make proper and legal decisions in the operations of their business.
I can only speak from my days as a low income apartment housing landlord but I think the issues are about the same. I only rented month to month because a year lease protected tenant from me raising the rent but it did not protect me from the tenant skipping out before the end of the lease.
If I had a year lease and they moved out, what the heck was I going to do about it; they were low income, as in living hand to mouth. They were as likely to change jobs (if a job was even part of the equation) as they were to change home addresses. How the heck would I find them to serve them with the complaint? If I had a judgement what are the chances of collecting?
I came to the conclusion that the landlord’s protection afforded by a lease was just an illusion; at least on the side of the tracks where I did business.
Thanks for the replies especially gregg.
Brian -
The correct way to address us is “Frank, other experts, … oh, and Jefferson too…”
(:P)
We do not re-paper our parks with leases, other than upon a new acquisition. We do re-paper them when there are significant changes to the rules & regulations. (We use Frank & Dave’s leases and rules & regulations, both slightly tweaked for our preferences - but they are 99% unchanged.)
To your continued success,
-jl-
Thanks Jefferson,
Some states require it others do not and stone owners choose as a business practice to get an update on who is living in the park
Due to death, divorce etc…