Who pays lot rent? - Posted by Shane

Posted by Tim on October 24, 2003 at 23:04:21:

I also have a couple I use for rentals and I include the lot rent, and pay myself. Any time you can control and make the payments yourself to protect your assets it is a good idea.

Might think about utilities too especially water. Oftentimes this bill can represent a lien until paid. you should be aware and at least make sure they copy you on deliquency notice (I am fortunate, my utilities go through court against billing party, could care less who owns.) Also a good idea to talk to utilities and have your info on file. If you have an unexpected move one less thing to worry about in winter (mobiles don’t fare well with no heat.)
I have an arrangement that if a tenant goes deliquent, and they go to shutoff notice, I am copied. Also, they call me before shutoff and I will meet them there and usually get there money. Write a clause in your lease about utilities are a condition of lease, shutoff or latepayment is a direct violation. That much easier to evict a deadbeat. Also, judge here in town sees switching of utilities back to LL as abandonment(if done by tenant)…which saves eviction if they break lease.
(Would hate to evict a bad tenant and find out you are into the park for $1000 in back rent, and $500 for utilities or worse…)

Plus it seems to help the ever valuable relationship with the PM.

I just deposit into the PM’s account…really easy. Talk to the PM. Some require it on rentals as well.

As as side note this board focuses on sales moreso then rent. If you need more info about renting, I have a rental forum I also visit, I would be happy to share if you email me directly.

Who pays lot rent? - Posted by Shane

Posted by Shane on October 24, 2003 at 22:33:30:

I just bought a mh in a park that I’m going to rent out. I’m struggling with what to charge for rent. Should I add the lot rent to the mh rent?

Re: Who pays lot rent? - Posted by Randy

Posted by Randy on October 25, 2003 at 01:11:26:

Shane, I’ll share a nightmare story. I was acting as my invalid sister’s guardian. I sold her only asset, a MH to a buyer who was to pay the lot rent.They paid me poorly. What I didn’t know, and didn’t know to ask, was that they didn’t pay lot rent at all. The PM had the MH impounded, and moved to a storage lot. The $15,000 MH yielded $4,000 from a salvage buyer.
The moral of the story-- you should collect the lot rent and pay it. Never trust the tenant to pay it.