Possible SAFE compliant "RTO" plan

[Sean Iannucci]

The law allows us to do straight leases then give homes away to anyone who lasts more than X months. The problems with this method come from the fact that we want tenants to know upfront that they are working toward ownership.

A tenant that is working toward ownership will have less turnover on average and take better care of the unit.

My proposed solution is a straight lease including something like this:

Long Term Tenant Appreciation Plan

After “X” months of paid rent and adherence to all park rules, mhp MAY, at its sole discretion, transfer the ownership of the rented home to the tenant.

Downsides:

You would not be able to collect more than market rent.

Some tenants may be turned off by the language that does not guarantee them ownership.

Pros:

The encouragement of long term tenants and ownership

I think this is SAFE compliant.

Helps us get to our goal of a park filled with tenant owned homes.

Questions:

What would be the best way to advertise this?

Could we be more clear when verbally explaining the situation and say things like we “will” transfer the title after x months?

Would you include anything else in that paragraph?

Thoughts?