Mobile home park ethics

[Ed Emmons]

I had an interesting experience the other day that made me raise some questions. I completely understand the big business strategies of buying parks and jacking rates as high as possible to increase cap rates and move on. The ethics of that strategy has been addressed many times. I went to a local park to inquire on a home for sale. It is located in a park where the rent has been jacked to maximum. The park has homes about 12’ apart so a lower end park getting top rent. The owner included a right of first refusal clause in his lot lease which allows him to buy at any offer and he has 2 weeks to make that decision and he requires an additional 30 days notice to move the home. In our area a person could easily buy a property and install the home for less than the current lot rent. So he effectively is keeping the person from selling the home unless it is to him cheap as owner. 
So a person who has been victimized by jacked rent and wants to make a good financial decision and is being prevented by the park owner. He can brag about how his park is filled and the value is so high but at what cost to people? Is it worth it? I’ve been in this industry for decades and many millions can be made while still caring about people. After a certain point it isn’t much more than bragging rights of how many units you own. If that’s your aim consider the whole picture. Wealth can easily be made in real estate while keeping your integrity. Slum lords give landlords a bad name. Hopefully, the new wave of park owners won’t do the same.