Problems moving Park Owned Homes to Tenants

[James Allen]

I'm in the midst of turning a park around that was in terrible condition upon purchase. We have spent tens of thousands fixing the homes and are now in the stage of moving the Park Owned Homes to the tenants. Some of the tenants are not wanting to own the homes. I believe they like the idea of the property manager basically being on call. Does anyone see an issue if I give them the option of another $50 increase on rent or them take ownership of the home with lot rent only? For example, current rent is $400. The offer would be that I increase the rent to $450 or them take ownership and the lot rent be $300. I do have my Dealer/Seller license so that isn't an issue. I just want to gift the homes because many of them are 70's and 80's models. Thoughts?

[Frank Rolfe]

Tell them that you are ending all home rentals. They either need to take over ownership of the home (via gifting or selling it to them at a nominal price) or move out as of a certain date. Make sure that all leases have expired (you cannot cancel existing leases). Do not make it an option -- it's that they either have to be home owners or they have to leave. Those that leave will require you to renovate the homes, put them on the market and sell them. You do not need to be chasing them around to get them to take over the homes. Be honest that home rentals are no longer a business model that you want to be in and now it's their time to either take responsibility for home ownership or find somewhere new to live. Most will choose to be homeowners (at least the good ones will).