Posted by thoughtgang on April 23, 2006 at 10:11:27:
i guess i should clarify-the parameters of the deal are agreed to-no transfer will take place until July at the earliest. trash is included in their rent. i like the idea regarding the letter as there are many violations which will have to be addressed.
well, i pulled the trigger on a mhp…now what? - Posted by thoughtgang
Posted by thoughtgang on April 23, 2006 at 01:24:17:
22 unit park 20 owner owned homes
160/mo lot rent
individually metered water with city sewer and trash
only park in the city limits
Needs: lonnie deal 2 remaining spots. previous owner has let park rules completely slide-there are sheds and doghouses throughout the park.
any ideas on setting priorities of improvements/repairs which increase value of the park?
Re: well, i pulled the trigger on a mhp…now w - Posted by Eddie-MI
Posted by Eddie-MI on April 25, 2006 at 12:30:08:
After a cold winter- I send out a notice to some tenants who are too lazy to keep an orderly outside appearance of the units (tires, garbage bags, vehicle ruts). Keeping the grounds clean is important to a nice place.
Congratulations - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on April 24, 2006 at 22:56:58:
Congratulations! Now do some land/banks so you can pay the bills. Parks are long-term cashflow, not short-term. Also, when you go to enforce your rules, you will loss some people and lot rent.
Step 1: Send out an introduction letter of yourself with a Resident Information Sheet. E-mail me and I will forward mine. Then hand out or send out park rules and rate sheet. I had my attorney send them certified mail return receipt. I have had residents lie in court that they never received the park rules which I handed to them multiple times. This cost more money, but the fact that they got the park rules is the most important thing. I do this, because Maine is very liberal with tenants. Also, in any turnaround property, 10%-20% of the tenants are the worst. You must get those individuals out in order to turn it around. They will fight you with everything they have. But once you get them out, the rest will quickly follow in line. My park rules are designed to eliminate these few. Do these two items as soon as you can. I have learned from experience to come out quickly with extensive rules. It is better to rip the bandaid quickly. These people will hate any change, so you might as well give them all the changes upfront. Enforce the biggest ones first: rent payment, trash on the lot, etc…, and as these get addressed, enforce the minor rules.
Send me you e-mail address and I will forward my Annual Survey, Park Rules, Confirmation Sheet, and Rate Sheet.
Best investing, Chris
Congratulations! - Posted by ray@lcorn
Posted by ray@lcorn on April 24, 2006 at 19:48:34:
If you’re like me you left closing thinking, oh wow, I own it! Then you drove through the property and thought "Oh Sh*T, I own it?
That’s what I call the “aww sh*t” moment… but it passes, and if you did your homework the investment is the beginning of your success.
The one best tip I can give you about takeover of a MHP is similar to the advice from Bruce below… clear and immediate contact with the residents to let them know who you are, what to expect, and when to expect it.
That covers a lot of ground, from the way you will collect rent to picking up trash. And the very best way to communicate those things is with a Rules Sheet. I assume that the tenants do not have leases, and that’s just the way you want it. A signed rules sheet will have the same binding effect as a lease and none of the drawbacks. In the rules you can clearly spell out what you will and won’t allow on the lots, how the lots will be maintained, when the inspection will be made, noise, nusiances, etc. It will also includes the normal stuff about rent due date, late fees, default provisions and the like.
ray
p.s. Check with your state’s landlord tenant law for specific guidance about land-lease parks. Many states don’t have any regulations, but some do, so be sure you’re cognizant of the requirments and construct the rules accordingly.
archives are priceless - Posted by Briton(IN)
Posted by Briton(IN) on April 23, 2006 at 17:19:01:
You may want to consider searching the archives for SEVERAL HOURS then come back with some more detailed info/questions.
Most of the info you seek is a few clicks away.
Good Luck. Briton
Re: well, i pulled the trigger on a mhp… - Posted by Bruce
Posted by Bruce on April 23, 2006 at 07:52:43:
I think you should have had at least the framework for this plan in place before you “pulled the trigger” as you say. I started with a letter to all tenants which outlines your intentions to visually and physically clean up the appearance of the park. I explained that none of the changes were meant to punish anyone in particular but were necessary for the operation of the park. Give them a finite period of time to complete the necessary repairs or cleanup and politely explain that you will not allow any non-compliance. I then went home to home and went over the things that I needed each of them to do and was polite and professional. If they ask why (some will) I explained to them that when I have empty lots that I wanted prospective tenants to see that the park is a clean well maintained place to live. In my letter I closed with the thought being that my intentions are to make the park a better place for everyone to live. One last thing…if they have individual trash pickup,do not allow it. Add it to their rent and get 1 company to pick it up for you. If there is trash sitting around some of them may not have paid their bill. Hard to imagine I know. Good luck.