Renting a old trailer.. is it good idea?

Question

Hello, we submitted an offer for a property which has very old trailer.
They are permitted, however they don't have a foundation which was legal long time ago.
However power, water, septic, and even gas is connected.
So We are thinking to flip by investing just $10,000 and rent it.

However today, I googled and visited this website( https://www.stimmel-law.com/en...) and I saw this...

Landlord Obligations for Habitable Premises - The Basic California Law

  Under the California Civil Code, landlords of a property must ensure that certain conditions are met which make the living space habitable and safe for potential lessees.
  These conditions include ensuring proper electric, gas, and plumbing utilities, as well as installing proper locks and security systems. If a landlord fails to meet these
requirements, the lessee has the option of deducting the costs of repair from his rent or vacating the premises with no constraints. A landlord can also be held liable for certain
  breaches of security that occur on his property, if the unsafe condition or act could have been foreseen or prevented.

Because the trailer is too old, and those models might not be manufactured anymore(It looks like in this link but older https://www.airstreamforsale.com)
So I guess it might be hard to meet current codes with the old trailer unless we spend lots of money.
If we don't fix up to code, then I think tenant might be able to sue us If something happen.

Am I worry too much, or is it make sense to worry?Is it better to pass the property, or is there a way that we can protect us from possible issue.

Thank you.

Tom Fidrych · Answer

Many people in CA rent travel trailers out and you would be responsible for making sure the systems work. It may not be legal in many areas but is typically tolerated unless someone complains. I had one permanently parked trailer and installed a regular toilet in it as well as large dorm sized refrigerator to replace the existing RV refrigerator. Also re-plumbed it with PEX as the poly tubing it came with is crap. I had friends living in it off and on for a number of years. If your component breaks, you will be able to improvise a repair with commonly sold materials.

A friend owns an excavator business and is located on acreage. He created 6 RV parking spots(not visible to one another) and dropped utilities. This rental model is a lot easier as the tenants bring their own RV and are responsible for it's maintenance.

Rachel H. · Answer

@Kevin Kim Yes, you'd probably be responsible as the landlord to make the home habitable. If you're concerned about the costs to get the unit up to code, you may want to start getting estimates from contractors. Once you get an idea of exactly how much work needs to be done to the home to get it up to code, then you should have more information to make a decision on what you want to do. Hope that helps!

Karl Denton · Answer

That’s a hard one, however airbnb guests have stayed in plenty of trailers before. I also know another investor that has flipped trailers with no issues. However sounds like you do need to talk to an attorney. It also may fall in a different category being its not a permanent structure.

Matt Devincenzo · Answer

Reach out if you want to chat more about this. The super short answer is travel trailers have never been legal dwelling units, they aren't governed by HUD code for manufactured factory built housing (e.g. mobile homes) which are legal dwelling units. Travel trailers are built to over the road 'RV' type standards (NFPA or ANSI) and weren't acceptable in any municipality for habitable dwelling. In the back country of SD there are hundreds of these unpermitted units I'm sure, but none of them are permitted...or they were permitted at temp RV spaces for visitor stay. Typically every City/County code explicitly prohibits their use as dwellings...Here is a mention of this prohibition within the County mentioned in their ADU guidelines, but I can assure you it applies pretty much everywhere.

That said City of SD did recently allow them to be used for ADU dwellings. It only applies in City of SD, and I haven't seen anyone actually pursue it, but that's the rules inside City limits.

Devin James · Answer

Hey Kevin Kim,

I think most people advice would be to speak with an attorney in your area.

That being said, there is usually an answer to every problem and there is probably a way to make this property work financially. But you should ask yourself if its worth the potential headaches & time commitment.

Kevin Kim · Answer

I visited the property with an inspector couple days ago, and he said that it will cost a lot more than what I thought, and in the case it is better to buy a new manufactured home. So I gave up the property.

Kevin Kim · Answer

By the way,  the property is in good desired area with 7/7/9 school rating and there is a separate garage which tenant can use for storage unit or game room. and the lot size is about 0.3 acres which is quite a big.

I searched rent the area, and there is just one rent available for less than $1500 for 500sq feet small unit, and there are 4 rent available for more than $3000.

So I was thinking to rent the old trailer after I flip nice at $2000.Do you think is it too much? or is it reasonable?

My uncle have talked to me to buy a house in Phelan because we can buy a good house in 2+ acres lot with the same amount of money for the property that I'm looking for.

Please let me know what do you think.

Kevin Kim · Answer

Okay. I feel like not many attorneys will have right answer because not many people flip old travel trailer for rent, and It is hard to find experienced knowledgeable attorney. I asked to HUD and waiting an answer.

Renting a old trailer.. is it good idea?

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